India’s Video Industry Third Largest In APAC, Poised To Hit $17 Bn By 2028: Report

India’s video industry, which includes TV and digital, has reached a valuation of $13 Bn, making it the third-largest in the Asia-Pacific (APAC) region, behind China and Japan, according to a new report by consulting firm Media Partners Asia Research (MPA).

The report includes free TV, pay TV, SVOD, premium AVOD and UGC/Social Video across 14 markets.

It further said that India’s video market is projected to grow at 5.6% from 2023 to 2028, reaching a revenue of $17 Bn by 2028.

In 2023, APAC video industry saw a growth of 5.5%, propelling its total revenue to $145 Bn. The surge was primarily fueled by a 13% increase in sales within the online video sector, amounting to $57 Bn. In contrast, television revenue experienced more modest growth, registering at less than 1% and reaching $88 Bn.

According to projections by MPA, the APAC video industry is anticipated to witness a Compound Annual Growth Rate (CAGR) of 2.6% between 2023 and 2028, resulting in a total revenue of $165 Bn by 2028. Excluding China, the CAGR is expected to be 3.3%, reaching $95 Bn during the same period.

Furthermore, the APAC online video sector is forecasted to experience a robust growth with a CAGR of 6.7%, reaching a total value of $78 Bn by 2028. In the APAC region excluding China, the CAGR for online video is projected to be even higher at 9.2%, reaching $46 Bn by 2028.

“The Asia Pacific video industry continues to experience a secular shift from TV to online in terms of engagement and monetization. Improved connectivity, rising connected TV (CTV) penetration combined with the growth of local creator economies, investment in premium local
content as well as the wide availability of premium sports streaming, will continue to drive dollars and eyeballs online,” said Vivek Couto, MPA’s managing and executive director.

“New investments made by strategics and private equity in the online video sector in China, India, Indonesia, Japan, Korea and Southeast Asia are helping local and regional companies compete. The online video sector is also starting to rationalise with price increases in the SVOD category along with disciplined content and marketing investment, the introduction of ad tiers, new strategies to drive monetisation and the start of local market consolidation in Korea, Japan and India,” Couto added.

India’s OTT industry is dominated by the likes of Jio Cinema, Disney+ Hotstar, Netflix, Amazon Prime Video, ZEE5, as well as regional players like Aha, Hoichoi. Interestingly, as Reliance and Disney are heading towards a merger, it could create a monopoly in the OTT market.

Platforms like Netflix and Amazon Prime can consider increasing their prices to safeguard against potential competition, merger between JioCinema and Disney+ Hotstar, by maintaining revenue and sustaining their market positions.

Meanwhile, the Ministry of Information and Broadcasting (MIB) has floated a draft Broadcasting Services (Regulation) Bill, 2023, for public consultation, to replace the existing Cable Television Networks (Regulation) Act.

This move is expected to be a game changer for over-the-top (OTT) platforms in India as this bill seeks to take all such platforms under its purview.