India’s video industry, encompassing both television and digital platforms, has attained a substantial valuation of $13 billion, securing its position as the third-largest in the Asia-Pacific (APAC) region. This revelation comes from a comprehensive report by Media Partners Asia Research (MPA), shedding light on the dynamic landscape of the country’s media and entertainment sector.
The MPA report delves into various segments of the video industry, covering free TV, pay TV, SVOD, premium AVOD, and UGC/Social Video across 14 markets. Notably, India’s video market is poised for a 5.6% growth from 2023 to 2028, setting the stage for a remarkable $17 billion in revenue by the end of the projection period.
In the broader APAC context, the video industry witnessed a 5.5% growth in 2023, contributing to a cumulative revenue of $145 billion. The online video sector emerged as the primary driver, experiencing a substantial 13% increase and accounting for $57 billion. In contrast, television revenue exhibited more modest growth, barely surpassing 1% and settling at $88 billion.
Projections by MPA indicate a Compound Annual Growth Rate (CAGR) of 2.6% for the APAC video industry between 2023 and 2028, culminating in a total revenue of $165 billion by the end of this period. Excluding China, the CAGR is expected to accelerate to 3.3%, reaching $95 billion.
Taking a closer look at the online video sector in APAC, a robust growth with a CAGR of 6.7% is anticipated, resulting in a total value of $78 billion by 2028. When excluding China, the CAGR for online video is projected to surge even higher, reaching an impressive 9.2% and a total value of $46 billion by the end of 2028.
Vivek Couto, Managing and Executive Director of MPA, emphasized, “The Asia Pacific video industry continues to experience a secular shift from TV to online in terms of engagement and monetization.” Couto highlighted factors such as improved connectivity, rising connected TV (CTV) penetration, and the growth of local creator economies as key drivers.
The report also noted significant investments by strategics and private equity in the online video sector across various APAC countries, fostering competition and innovation. Couto pointed out that the sector is undergoing rationalization with price increases in the SVOD category, disciplined content and marketing investment, and the start of local market consolidation in key regions.
India’s OTT industry, dominated by platforms like Jio Cinema, Disney+ Hotstar, Netflix, Amazon Prime Video, ZEE5, Aha, and Hoichoi, is on the cusp of potential transformation. As Reliance and Disney move towards a merger, industry watchers speculate on the emergence of a potential monopoly in the OTT market. In response, platforms like Netflix and Amazon Prime may consider adjusting their pricing strategies to safeguard against potential competition.
In a parallel development, the Ministry of Information and Broadcasting (MIB) has proposed the Broadcasting Services (Regulation) Bill, 2023, aiming to replace the existing Cable Television Networks (Regulation) Act. This move, currently open for public consultation, could significantly impact over-the-top (OTT) platforms in India by bringing them under regulatory oversight.
