India's video market is undergoing a major transformation, with premium online video-on-demand (VoD) content playing a critical role. A new report by Media Partners Asia (MPA), commissioned by Prime Video India, reveals that streaming VoD will account for half of the new revenue growth in the country's video sector. The report, "Beyond Screens – Streaming VoD's Impact on The Creative Economy," highlights the rapid evolution of video consumption and its significant implications for the industry.

Streaming Influence

The report forecasts that India's video entertainment economy, driven by streaming VoD, will reach a valuation of $13 billion by 2028, representing an average annual growth rate of 8% from 2023. Streaming VoD is expected to contribute half of the new revenue generated within the video market, which includes revenues from intellectual property owners, TV networks, and online video platforms.

In 2023, the premium online video sector, which includes long-form entertainment, sports, and news, earned about $1.7 billion. This revenue is projected to double to $3.7 billion by 2028. The sector has invested $2.2 billion in local content, spanning entertainment and sports, to meet the growing demand for high-quality, original content.

Traditionally dominated by TV, content investments are increasingly shifting towards online video. By 2024, online video, excluding sports, is expected to hold a 24% market share, up from 8% in 2017. This share is anticipated to rise to 30% by 2028.

Investing in Local Content

Streaming platforms, including global giants like Netflix and Prime Video, as well as various domestic services, are heavily investing in local content across multiple languages. This trend underscores the growing importance of streaming revenues, which now equal 1.5 times the net share of theatrical box office receipts for movie producers, according to MPA.

Monika Shergill, vice-president of Content at Netflix India, emphasizes the importance of original stories and voices to their brand's long-term success. "At the heart and centre of what we do is to back original stories and voices. They are a very important part of our brand and long-term success as a company," Shergill said.

MPA reports that investment in local entertainment content, including scripted, unscripted, and sports programming, reached $5.8 billion in India in 2023, up from $3.3 billion in 2018. Despite this growth, India's investment in entertainment lags behind Japan, Korea, and the United States, which lead with $10 billion, $6 billion, and $125 billion, respectively.

Challenges and Opportunities

India's OTT sector, which experienced a slowdown in investments in 2022 due to global pressures and sluggish subscriber growth, has remained cautious. Platforms are now focusing on securing high-profile films and experimenting with episodic content formats similar to traditional TV to engage viewers while managing costs.

India faces significant hurdles in content production, including bottlenecks in physical infrastructure and a shortage of skilled technical talent. The concentration of content production in metropolitan areas strains existing facilities, which struggle to meet the demands of the expanding media and OTT sectors. Additionally, piracy remains a concern, with illicit streaming platforms increasingly dominating over traditional peer-to-peer file sharing.

Impact on Related Industries

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 more than 1,500 original titles between 2016 and 2023, generating approximately 174,000 jobs. The industry is expected to create 280,000 new positions by 2028, potentially exceeding 330,000 jobs as demand for specialized skills in VFX, animation, subtitling, and dubbing grows, the report stated.

Overall, the MPA report underscores the significant role of streaming VoD in shaping India’s video market and highlights both the opportunities and challenges that lie ahead.

Recent Updates:

How Consumers Can Save on Imported Smartphones with New Duty Cuts

Protect Yourself from Cyber Fraud: How to Keep Your Bank Account and Aadhaar Card Safe

Cyber Fraudsters Target Job Seekers on Social Media: Beware of Fake Job Offers