Indians spend 28 hrs on mobile vs 4 hrs on TV per week
Kleiner Perkins Caufield & Byers partner Mary Meeker has put a special focus on India's growing Internet sector during her annual Internet trends report that was released yesterday.
Here are some key takeaways from the report:
- While the global Internet users growth rate remained flat at 10%, Internet user numbers in India grew more than 28% to 355 million users until mid-2016. Internet Penetration stands at 27%, suggesting there is room for significant growth ahead.
- Indians spend the most time on Android phones, spending nearly 150 billion hours between 2014-2016. They are also biggest app downloaders from Google Play Store with more than 6 billion downloads between 2014-2016. This data however excludes China.
- Adblocking penetration in India is estimated at 28% on mobile, second only to Indonesia which has a 58% penetration. On desktop, the penetration is a lowly 1%. The report notes that mobile adblocking estimates are for global monthly active users of mobile browsers that block ads by default between September 2014-December 2016.
- Total mobile phone shipments also grew by 6% in Q1 2017. It had dipped by 3% in 2016 and by 2% in 2015.
- The average smartphone selling price is declining but still unaffordable for many with the price at 8% of the country's annual average GDP per capita.
- The wireless data costs however are declining significantly to more affordable levels. The data prices have dipped more than 48% over the last year, following the entry of Reliance Jio and incumbent telecom operators responding to Jio's low pricing.
- Indian broadband subscriptions have registered more than 85% growth on a yearly basis to 277 million users.
- Mobile accounts for nearly 80% of web traffic in India, one of the highest globally, only preceded by Nigeria.
- Alibaba's UCBrowser still leads India's mobile browser market with 50% share but Google Chrome is fast catching up with 32% share. Once dominant Opera mobile browser is now at a distant third position with its market share shrinking with each quarter.
- Utility and social apps dominate India's top downloaded Android apps (excluding gaming apps) with WhatsApp leading the pack. Four of Facebook owned apps are currently among the top 10 Android apps in India. Jio TV jumped to ninth position from 301st position, likely registering the highest jump in terms of rankings over the past year.
-Various digital-focused government policies like Digital India, Startup India, Jan Dhan Yojana, Aadhaar, Demonetisation and GST Reform finds a mention in the report.
- UPI transactions has jumped significantly after Indian government's demonetisation move in November. The transaction value has jumped nearly 23x to $359 in March 2017 from $15 in November 2016.
- Indians are spending 28 hours on mobile per week as compared to 4 hours on television and 2 hours on print.
- On mobile phones, Indians are spending 45% of their time on entertainment and 34% time on search, social and messaging.
- On-demand mobile-optimized Internet shows are replacing linear TV programming, driven by Jio's 4G rollout.
- Indian market is also re-imagining education, healthcare and marketplaces with players like Byju's (Education), 1MG and Portea (healthcare), Freshtohome (marketplace).
Indian market challenges
The report also points out various challenges like slowdown in venture capital funding and the fact that majority of Indians need to access the Internet in their local language
- The female labor participation rate in India is at 27%, which is nearly half of global average of 50%.
- India also lags behind several countries in ease of doing business and infrastructure rankings.
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