India's $13 Billion Video Industry Set for Growth

By siliconindia  |  Friday, 05 January 2024, 16:14 IST

India's $13 Billion Video Industry Set for Growth
According to a recent study by Media Partners Asia Research (MPA), India's combined TV and digital video industry has attained a valuation of $13 billion, positioning itself as the third-largest in the Asia-Pacific (APAC) region. This report examines various sectors within the industry, including free TV, pay TV, SVOD, premium AVOD, and UGC/Social Video, across 14 markets. The study anticipates India's video market to expand at a rate of 5.6% between 2023 and 2028, projecting a revenue surge to $17 billion by 2028.
In 2023, the APAC video industry saw a 5.5% growth rate, contributing to a total revenue of $145 billion. The surge was primarily attributed to a substantial 13% increase in sales within the online video sector, reaching $57 billion. Television revenue, in contrast, experienced more modest growth, with an increase of less than 1% to reach $88 billion. MPA's forecasts suggest that the APAC video industry will witness a Compound Annual Growth Rate (CAGR) of 2.6% between 2023 and 2028, reaching a total revenue of $165 billion by 2028. Excluding China, the anticipated CAGR is 3.3%, projecting a revenue of $95 billion during the same period.
The online video sector in the APAC region is expected to undergo robust growth, forecasted to achieve a CAGR of 6.7% and achieve a total value of $78 billion by 2028. Excluding China, the projected CAGR for online video stands higher at 9.2%, reaching $46 billion by 2028. Vivek Couto, MPA's managing and executive director, highlighted the industry's transition from television to online platforms, attributing this shift to improved connectivity, increased connected TV (CTV) penetration, and the growth of local creator economies. Additionally, he emphasized the impact of new investments in the online video sector and the initiation of local market consolidation in specific regions.
India's OTT (Over-the-Top) industry is currently dominated by key players such as Jio Cinema, Disney+ Hotstar, Netflix, Amazon Prime Video and ZEE5, alongside regional platforms like Aha and Hoichoi. The potential merger between Reliance and Disney could significantly impact the market, potentially leading to a monopolistic situation. This scenario might prompt platforms like Netflix and Amazon Prime to consider raising their prices to sustain their market positions.

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