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Business News/ Industry / Media/  India’s online video market set to touch $4.5 billion by 2025
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India’s online video market set to touch $4.5 billion by 2025

India’s online video industry generated an estimated $1.4 billion in 2020, said a report by MPA

A combination of web shows and movie acquisitions are driving content strategies currently.Premium
A combination of web shows and movie acquisitions are driving content strategies currently.

NEW DELHI : India’s online video market is projected to grow at a compounded annual growth rate (CAGR) of 26% between 2020 and 2025 to $4.5 billion with the pandemic-led digital disruptions fast-tracking adoption of online video streaming as an entertainment option as people were stuck at home during the lockdown.

According to a report, India Online Video and Broadband Distribution 2021, by Media Partners Asia (MPA), India’s online video industry generated an estimated $1.4 billion in 2020 with advertising contributing 64% and subscription 36% to overall in revenue.

MPA is an independent provider of research, advisory and consulting services in media, telecom, sports and entertainment for Asia-Pacific and the Middle East.

While close to 60 streaming platforms are operating int he country, the top five services YouTube (43%), Disney+ Hotstar (16%), Netflix (14%), Amazon Prime Video (7%) and Facebook (5%) accounted for 85% share of total revenues in 2020.

The average number of SVoD (subscription video-on-demand) services opted for by customers reached 2.8 in India and South-East Asia, MPA executive director Vivek Couto said.

MPA projects the SVoD market to reach $1.9 billion at a 30% CAGR over the next five years. Online video advertising reached an estimated $909 million in 2020, a marginal decline of 2% year-on-year with falling demand forcing advertisers to recalibrate ad budgets. The AVoD (advertising video-on-demand) segment is expected to expand at a CAGR of 24% over five years to reach $2.6 billion by 2025.

“Subscription-based online video services benefited significantly in 2020 as the country went into a lockdown. Key players are investing in premium local content while leveraging sports, movie rights and aggressive consumer pricing to drive subscriber adoption. The SVoD market will remain competitive as Disney+ Hotstar scales its direct subscription business, while Netflix and Amazon Prime Video deepen partnerships with mobile and fixed broadband operators," MPA India vice-president Mihir Shah said in a statement, adding that the three platforms accounted for almost 80% of all SVoD revenues in 2020.

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ABOUT THE AUTHOR
Lata Jha
"Lata writes about the media and entertainment industry for Mint, focusing on everything from traditional film and TV to newer areas like video and audio streaming services. She loves movies and spends a lot of her free time watching them, which makes her job both fun and a bit of a challenge. Lata tries to find and write about things in the entertainment world that most people don't notice, even though a lot of people in her country are really into movies and entertainment news often just talks about the glamorous side of things. "
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Published: 11 Jan 2021, 11:01 PM IST
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