The online video industry in India has the potential to attract investments worth $17 billion to the creative economy in the next five years, according to a new report published Wednesday by Media Partners Asia (MPA).
The streaming VOD (video-on-demand) segment can also have a social multiplier impact, generating close to 3,30,000 jobs by 2028. In 2023, the industry created nearly 1,74,000 direct and indirect jobs, showed the report.
While the streaming segment only came to the forefront of media and entertainment industry during the Covid-19 pandemic, it has now attained an “existential” role to several other allied segments. The rise of streaming platforms has naturally impacted theatrical footfall, especially since the pandemic.
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Usurping TV and Theatres
In terms of movie production, the report noted, “Today, movie producers continue to thrive, with streaming revenues equating to 1.5x of their net share from theatrical box office.” In 2023, streaming revenues accounted for 155 per cent of net domestic box office revenue. This is projected to reach 174 per cent by 2028.
As the economic value of streaming segment is expected to match the TV industry by 2026, content owners are likely to continue prioritising the over-the-top (OTT) streaming space, the report said.
Even in terms of investment into content production, the online video industry is giving television a run for the money. In 2020, TV saw 50 per cent of overall investments while online video (excluding sports) made up 17 per cent. By 2028, MPA projections show that TV’s share will be cut down to 24 per cent, while the share of online video will rise to 30 per cent.
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Much of the analysis in the report takes into account the six major streaming platforms in India: Disney+ Hotstar, (Amazon) Prime Video, Netflix, Sony LIV, Zee5, and Voot/Jio Cinema. The study was commissioned by Prime Video India.
The meteoric rise of user-generated content (UGC), which includes user uploads on platforms like YouTube and Instagram, is also well documented in the MPA report. In the overall video market as of 2020, revenue from Pay-TV channels accounted for 73.2 per cent, while premium VOD platforms and UGC made up 12.5 per cent and 16 per cent, respectively.
Premium VOD includes streaming platforms that offer long-form video content to consumers for a subscription fee or for free or in a hybrid model (i.e. freemium), as per MPA.
By 2028, revenue from Pay-TV channels is projected to make up only 45 per cent. The share of UGC is estimated to rise to over 27 per cent whereas premium VOD platforms will make up the remaining 28 per cent.
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