Time and again, we see India on the global map and in recent years increasingly. With its large population, huge domestic demand and increasing disposable incomes, there are many paradigm shifts in the Indian context.
India’s Video Industry Third Largest in APAC
This time around the “India” brand pops up in the video industry!
As per the recent report from Media Partners Asia Research (MPA), trailing just behind China & Japan, India’s video industry is now valued at $13 billion. This includes the television and digital platforms.
This study was comprehensively conducted and analysed in 14 markets across various formats like free TV, pay TV, subscription video-on-demand (SVOD), user-generated content (UGC)/social videos and premium advertising-based video-on-demand (AVOD).
This does not just stop here as the game is going to get better since the Indian video market has been forecasted to grow at a rate of 5.6% from 2023 to 2028, reaching a revenue of $17 billion by 2028.
Accumulating total revenue of $145 billion in 2023, the broader APAC video industry experienced a 5.5% growth.
Primarily fuelled by a remarkable 13% increase in online video sales, reaching $57 billion.
Totaling $88 billion, only at 1%, the television revenue saw modest growth.
Between a period of 2023 and 2028, MPA projected a CAGR of 2.6% for the APAC video industry, which would result in a cumulative revenue of $165 billion by 2028.
Leading to a total revenue of $95 billion during the same period, the anticipated CAGR is higher at 3.3%, excluding China.
Reaching a total value of $78 billion by 2028, the APAC online video sector is expected to exhibit a growth of 6.7% CAGR.
It is with the exclusion of China, that the CAGR for online video is projected to be even more substantial at 9.2%, hitting $46 billion by 2028.
From Traditional to Online
The MD and Executing Director of MPA, Vivek Couto, said that this paradigm shift from traditional to online can be attributed to the reasons like improved connectivity, increased connected TV penetration and the growth of local creator economies.
There is stiff competition in the APAC countries due to the strategic investments as well as the private equity in the online video space. Due to multiple reasons which include price increases in SVOD, nascent market consolidation and disciplined content and marketing investments, there is rationalization in the sector.
Speaking of the Indian OTT game, there is domination of players like Jio Cinema, Disney+ Hotstar, Netflix, Amazon Prime Video, ZEE5, and regional platforms like Aha and Hoichoi.
Another cliffhanger in the OTT space is the potential merger of Reliance and Disney, which could potentially result in monopoly.
To counter the same, other platforms like Netflix and Amazon Prime may have to consider price adjustments and changes.
Another development in the space is the Broadcasting Services (Regulation) Bill, 2023, the draft of which was prepared by the Ministry of Information and Broadcasting (MIB) in order to replace the existing Cable Television Networks (Regulation) Act.
Until now, the OTT did not come under the canopy of this bill due to which till now OTT sector faced little to no intervention when it came to having their leeway, but this bill is expected to have big impact in the OTT sector.
