India’s online video market to touch $1.6 billion by 2022: report
New Delhi: Indian online video industry is expected to touch $1.6 billion in revenue by 2022, from the estimated $340 million in 2017, growing at a compound annual growth rate (CAGR) of 35%, said a report published by global media research and consulting firm Media Partners Asia (MPA).
In 2016, online video revenue (net advertising and subscription fees) was estimated at $230 million. The report titled ‘Asia Pacific Online Video & Broadband Distribution’ analyses digital video consumption, subscription and advertising business models, revenue generation and broadband infrastructure across 14 different Asia Pacific markets including China, Japan, Australia and Hong Kong.
Across Asia Pacific region, online video industry is expected to grow rapidly to $46 billion by 2022 from $17.6 billion in 2017 on the back of steady content monetization models, the report said. Between 2017 and 2022, online video revenue (net advertising and subscription fees) will grow at a CAGR of 21%.
“Advances in telecoms and payment infrastructure continue to point the way forward for the online video sector in Asia Pacific, although business models and regulations continue to evolve in a sector that’s still nascent in most territories,” said Vivek Couto, executive director at MPA.
The report attributed the growth in the industry to increasing demand for original content, sustainable business models and increasing access and demand for regional content. “Demand for original content along with movies, kids content and sports is also becoming more important. Content curation, packaging and pricing remain critical, along with brand equity,” Couto said.
According to the report, China will continue to contribute lion’s share of customers and revenue to the overall Asia Pacific market due to increased investment in original content and a weak traditional pay-TV market.
Japan, Australia, India, Korea and Taiwan will emerge as the markets outside China, with the most scale in online video revenues and distribution. “This reflects robust payment infrastructure (in these markets), including in India, along with the growth of advertising-funded platforms and the steady rise of premium, subscription-based platforms,” the report added.