OTT push: India's video market to touch $13B by 2028
What's the story
India's video market is transforming, with online video-on-demand (VoD) content, expected to drive half of the new revenue growth. This is according to a report by Media Partners Asia, commissioned by Prime Video India. The study, titled "Beyond Screens - Streaming VOD's Impact on The Creative Economy," underscores the rapid evolution of video consumption here. The research anticipates that India's video entertainment sector, propelled by streaming VoD, will touch a valuation of $13 billion by 2028.
Revenue growth
Streaming VoD to contribute half of new market revenue
Streaming VoD is projected to account for half of the new revenue in the video market, which includes earnings from IP owners, TV networks, and online video platforms. Last year, the premium online video sector generated approximately $1.7 billion. This figure is expected to more than double to $3.7 billion by 2028. The sector has invested $2.2 billion in local content, to cater to the growing demand for high-quality, original content.
Market share
Online video market share to rise significantly
Historically, TV has been the primary investor in content within the video industry. However, by 2024, online video (excluding sports) is projected to hold a 24% market share, a significant increase from its 8% share in 2017. This percentage is expected to further rise to 30% by 2028. Streaming platforms like Netflix and Prime Video are making substantial investments in local content across multiple languages.
Investment surge
Local content investments surpass theatrical box office receipts
According to MPA, the investments in local content by platforms like Netflix and Prime Video, now equal 1.5 times the net share of theatrical box office receipts for movie producers. Monika Shergill, Vice-President of Content at Netflix India, emphasized the importance of original stories and voices for their brand's long-term success.
Investment gap
India's entertainment investment lags behind global counterparts
Investment in local entertainment content, comprising scripted, unscripted, and sports content, reached $5.8 billion in India in 2023, up from $3.3 billion in 2018. Despite this growth, India's investment in entertainment still trails behind Japan, South Korea, and the US. The Indian OTT sector experienced a slowdown in investments in 2022, due to global pressures and sluggish subscriber growth.
Industry impact
Streaming boom impacts job market
The rise of video streaming has significantly impacted related industries. For telecom companies, video content drives over 70% of data traffic. The streaming boom has led to the release of over 1,500 original titles between 2016 and 2023, generating approximately 174,000 jobs. The industry is tipped to create 280,000 new positions by 2028, possibly exceeding 330,000 jobs as demand for specialized skills in VFX animation, subtitling, and dubbing grows.