OTT Platforms poised to drive 50% revenue growth in India's video market

India’s video market is composed for crucial growth, driven by premium online video-on-demand (VoD) content.

The video entertainment economy is expected to grow at an average annual rate of 8%, attaining $13 billion by 2028. The streaming services are anticipated to come up to half of this new revenue growth, says the report.

Titled "Beyond Screens – Streaming VOD's Impact on The Creative Economy," the report highlighted the swift progression in video utilization habits and its significant effect on the industry.

“This surge has led to a substantial increase in job opportunities, creating about 174,000 direct and indirect jobs in 2023 alone. The industry's projected growth is expected to open up 280,000 positions by 2028, potentially exceeding 330,000 as demand grows for specialized skills in VFX, animation, subtitling, and dubbing”, claims the report. 

The report spotlights a notable shift in the video industry, where online video has improved to capture 24% of the market share this year, marking a thrice increase since 2017 and assumed to reach 30% by 2028. This growth is hugely driven by streaming services, which now generate 1.5 times more income than movie producers net earning from box office sales. Furthermore, video streaming has become a major drive of data consumption for telecommunication companies, accounting for over 70% of their total data traffic. 

The study intensifies that premium online video now rivals other media sectors in terms of investment and has a profound effect on the film industry, telecommunications, and related sectors. Streaming video-on-demand not only influences globally, providing its soft power on the international stage. 

Content boom 

The streaming revolution has led to an extraordinary surge in content creation, with more than 1,500 original titles launched on VOD platforms between 2016 and 2023. These platforms are showcasing India’s diverse cultures and progressive outlook to audiences in over 190 countries, significantly enhancing the country’s international influence. Prime Video, Disney+ Hotstar, Jio Cinema, Netflix, Sony Liv and Zee5 are the leading OTT platforms of this cultural export, positioning Indian content alongside global sensations like K-pop, Anime, and K-dramas.                

Potential untapped

The report underscores the possibility of streaming VOD to cause enormous social and economic benefits across imaginative and allied industries. 

“To fully realize this future value, stakeholders must address critical challenges such as expanding production facilities beyond urban centers, fostering infrastructure collaboration, cultivating technical talent through innovative training programs and academic partnerships, and enhancing efforts to combat piracy and protect intellectual property,” it noted.