The premium online video-on-demand (VOD) is set to fuel 50% of new revenue growth of India’s total video market, according to a recent report by Media Partners Asia (MPA).
India has emerged as a powerhouse in the global video market, offering content owners and creators a USD 13 billion monetisation opportunity by 2028, increasing at 8% compound annual growth rate (CAGR). A key component of the digital economy, online video platforms have provided significant value to India’s diverse consumers across demographics, socio-economic backgrounds, and regions.
The report stated that while historically, TV has led content investments in the video industry, online video (ex-sports) already claims 24% share in 2024, a 3x increase since 2017, and is expected to touch 30% by 2028.
Further, with streaming revenues equating to 1.5x of movie producers’ net share from theatrical box office, the growth in the video industry holistically is being driven by streaming. Not just this, but even allied industries, like telecom are seeing the impact of video streaming. For instance, video has been the primary driver of data consumption for telcos, representing over 70% of their data traffic.
As the SVOD market has continued to expand, broadcaster-backed OTT platforms (BVOD) and other home-grown regional platforms have also intensified their investments in local originals. Investments in local entertainment originals have grown multi-fold since 2019. This trend is expected to continue, with annual investments surpassing the one-billion-dollar mark by 2028.
As per the report, the streaming revolution has already catalysed an unprecedented content boom, with over 1,500 original titles released across VOD platforms between 2016 and 2023. This surge has created a ripple effect of employment opportunities, generating approximately 1,74,000 direct and indirect jobs in 2023 alone. The industry’s projected growth promises to open up 2,80,000 positions by 2028, with the potential to exceed 3,30,000 jobs as demand for specialised skills in VFX, animation, subtitling, and dubbing intensifies.
Amidst the peak years of the pandemic (2020-2022), the surge in direct-to-OTT movie releases drove the growth of original regional content, accounting for 42% share in 2021. Despite the subsequent reopening of theatres, original series from South India and other regions have maintained momentum, resulting in a notable increase in regional language programming hours.
The report further delved into the social influencers catapult to mainstream stardom. In India, OTT platforms have transformed the landscape for social media influencers and creators, recognizing their talent and loyal audience base. This transition to mainstream acting offers lucrative opportunities, addressing the limitations of monetization on social media.
Shows and films like Taaza Khabar, Mismatched, Govinda Naam Mera, Masaba Masaba 2, Campus Diaries, and Bhaag Beanie Bhaag, Pushpavalli showcase how digital content creators seamlessly make their way into mainstream acting.
Premium video platforms are the true pioneers of the pan-India content movement, playing a significant role in expanding its reach nationwide. Crucially, the report highlights how these platforms are also emerging as powerful channels for the nation’s soft power on the global stage.
By showcasing India’s diverse cultures and progressive outlook to audiences in over 190 countries, these platforms are elevating the country’s international influence. Leading streaming services like Prime Video, Netflix, Disney+ Hotstar, Zee5, Jio Cinema and Sony Liv are at the forefront of this cultural exportation, poised to cement Indian content’s place alongside global phenomena like Anime, K-pop, and K-dramas.
The report also highlights how the social and economic multiplier effect of streaming VOD can unlock future value for stakeholders in the creative and several allied industries, contingent on addressing key challenges like:
1. Expanding modern production facilities beyond major urban centers
2. Fostering collaboration for infrastructure development
3. Cultivating technical talent through innovative training programs and academic partnerships
4. Intensifying efforts to combat piracy and protect intellectual property
