
Connected TV adoption is experiencing significant growth beyond urban centers, with one in three users now located in rural India according to a recent Kantar report. As reported by Mint, this represents a fundamental shift from the smartphone-driven streaming wave that powered India's initial digital entertainment transformation. The CTV base reached 68 million unique sets connecting to the internet each month in 2025, with approximately 40 million users connecting weekly, up from 30 million in 2024. Active connected TV homes are projected to rise to 67 million by 2028 as broadband access expands to over 90 million homes during this period.
The consumption behavior varies significantly by market segment, with metro cities showing established streaming habits and multiple OTT subscriptions, while smaller towns and rural India often represent the first large-screen digital viewing experience. According to Mint reports, more than 60% of CTV viewers who do not watch linear television are from smaller towns and rural markets. Russhabh R. Thakkar from Frodoh estimates 32-37% penetration of connected TVs in tier-2 and tier-3 towns, noting that regional OTT platforms creating content for specific dialects and celebrity-led movies are driving this natural shift. Small-town viewing is primarily focused on linear TV shows and regional movies, while urban areas show greater preference for web series. However, the latest research reveals that Gen Z viewers spend 3.1 hours daily on connected TV, challenging the mobile-only narrative as they demonstrate fragmented viewing behavior across devices.
New research reveals that Gen Z viewers spend 3.1 hours daily on connected TV, challenging the mobile-only narrative as they demonstrate fragmented viewing behavior across devices. According to a report by The Trade Desk, WPP Media, and Ormax Media, 77% of Gen Z connected TV viewers watch content with friends or family, while 88% exhibit two-screen behavior - using mobile devices for discovery and engagement while watching television. This behavior has grown dramatically over the past year and a half, with many Gen Z viewers being cord-cutters or cord-nevers who are beginning their television journey directly with connected TV. The report estimates that India now has 207 million connected TV viewers across approximately 62-65 million households, representing threefold growth since 2022. Mobile usage remains high at 4.3 hours daily, but Gen Z demonstrates significant time allocation to both screens, with 88% exhibiting two-screen behavior during television consumption.
The rapid CTV growth is attributed to multiple structural and consumer-led factors, including affordable smart televisions, improving broadband infrastructure, low-cost data, and bundled entertainment packages. As reported by Mint, there is a clear shift from individual mobile viewing to shared living-room consumption, with regional content, sports, and free streaming services accelerating adoption across smaller towns and rural markets. Saurabh Srivastava from Shemaroo Entertainment noted that CTV consumption across the company's YouTube ecosystem has witnessed over three-digit percentage growth, highlighting the platform's expanding reach beyond metropolitan areas. The medium is no longer restricted to affluent metropolitan households, with more than 67% of CTV audiences joining within the past year. Metros and mini-metros continue to be the largest markets, with Uttar Pradesh and Uttarakhand, Maharashtra and Karnataka remaining large markets for connected TV, while smaller towns and rural markets contribute significantly to growth momentum.
The premium viewing environment on CTV is reflected in stronger advertising metrics, with cost per mille (CPM) rates making the platform increasingly attractive for brands. According to VDO.AI co-founder Arjit Sachdeva, while metros deliver view completion rates (VCRs) of 95-96%, audiences in smaller towns consistently deliver VCRs of around 80%, with campaigns rarely dropping below 80% in tier-2 and tier-3 markets. Nearly 40% more brands are actively including CTV in their media mix compared to a year ago, particularly in categories with broad consumer appeal such as fast-moving consumer goods, consumer durables, home appliances, and automotive sectors. The report notes that CTV is no longer only premium - it has a mass component that is becoming core, with advertisers needing to lean in more while planning their media investments. However, the latest insights reveal that CTV has become mainstream and advertisers are now asking more intense questions about the medium's scale, planning capabilities, and targeting precision across different markets and geographies.