India’s online video market set to touch $4.5 billion by 20251 min read . Updated: 11 Jan 2021, 11:01 PM IST
India’s online video industry generated an estimated $1.4 billion in 2020, said a report by MPA
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.