India's OTT market projected to hit $7 billion in 2027
India's over-the-top (OTT) streaming video market is set to hit $7 billion in 2027, according to a report by Media Partners Asia (MPA). The report suggests that local players with deep pockets and global giants will drive the growth as they fight for the lion's share of the industry. Among the domestic players, Viacom18 and SonyLiv will be serious contenders.
- OTT streaming in India took a giant leap during the pandemic. Now in its second growth phase, the market is set to keep up its trajectory for foreseeable future.
- What was once a global giants-dominated field has competitive local players now. The next few years will see a showdown between the two as everybody tries to grab a lucrative piece of the OTT pie.
India's OTT market is one of the fastest growing in the world, with 97 million subscribers as of March. It made Rs. 17,000 crore in revenue in 2021, of which Rs. 5,200 crore was from subscriptions alone. In 2022, the industry hit $3 billion and is slated to touch $7 billion in 2027. The market is projected to reach $12.5 billion by 2030.
The report says that the competition in India's OTT market will intensify between global giants and wealthy local players. The newly recapitalized Viacom18, with the backing of Reliance, Bodhi Tree, and Paramount, will be a major player. Its new streaming platform with IPL cricket and local entertainment is set to emerge as the leader in the advertising video-on-demand (AVoD) space.
SonyLIV's turnaround is set to make it an impactful player in the industry. Meanwhile, the merger of Sony and Zee will create a serious contender in the online video and television business, said the report.
The growth of the OTT streaming market in India will be dependent on the reach of telcos, said the report. Better connectivity and access to digital networks and smartphones will be crucial for future growth. Other factors that would influence the growth are the AvOD business, low-average revenue per user (ARPU), and an increase in the volume of subscription video-on-demand (SVoD) services.
According to the Asia Pacific Online Video & Broadband Distribution 2022 by MPA, the Asia-Pacific region will grow at an 8% CAGR (compound annual growth rate) to reach $72.7 billion in 2027. In 2022, it will hit $49.2 billion, a 16% YoY growth, it said. SVoD will be the biggest contributor with 50%. China, APAC's biggest contributor, will generate $11.2 billion in 2022.
