Online video content to usher 50% of revenue growth in India’s video entertainment sector: Report

India’s video entertainment economy is at the cusp of a transformative change brought about by the contributions of the video on demand (VOD) industry. The premium online VOD will fuel 50% of total revenue growth of India’s video market, revealed a press release about a report commissioned by Prime Video India and conducted by Media Partners Asia (MPA).

The study titled "Beyond Screens – Streaming VOD's Impact on The Creative Economy," with the goal of underscoring the vision for the future of the country’s video sector and its far-reaching implications was published on Wednesday, July 24.

“The streaming revolution has already catalysed an unprecedented content boom,” the study read.

It further stated that over 1,500 original titles were released across VOD platforms from 2016 to 2023, creating a surge which resulted in generating about 1,74,000 direct and indirect job opportunities in 2023 alone.

The estimated growth of the industry holds the promise of opening up 280,000 jobs by 2028, with the potential to exceed 3,30,000 positions as the demand for specialised skills in VFX, animation, subtitling and dubbing intensifies in the sector, MPA said.

While historically, television has been at the forefront of content investments in the video industry, the report revealed that online video, excluding sports, is projected to reach about 30% share by 2028, it already holds 24% share as of 2024, a three-fold increase since 2017.

Furthermore, streaming revenues have been equating to 1.5 times of movie producers’ net share from theatrical box office, the report said.

As per the report, streaming had been holistically driving growth in the video entertainment sector.

Even allied industries, including telecom are witnessing the impact of video streaming, with online videos representing 70% of their data traffic. Online videos have been the primary drivers of data consumption for telcos, the study read.

According to the report, premium video platforms have been the true pioneers of the pan-India content movement, playing an important role in expanding the reach of the content nation-wide.

The report highlighted that these premium video platforms have emerged as conduits for the nation’s soft power on the global stage.

“By showcasing India's diverse cultures and progressive outlook to audiences in over 190 countries, these platforms are elevating the country's international influence to new heights. Leading streaming services like Prime Video, Disney+ Hotstar, Jio Cinema, Netflix, Sony Liv and Zee5 are at the forefront of this cultural exportation, poised to cement Indian content's place alongside global phenomena like Anime, K-pop, and K-dramas,” MPA said.

The report further underlined how the “social and economic multiplier effect of streaming VOD can unlock future value for stakeholders in the creative and several allied industries” dependent on addressing the key challenges faced by the industry.

The challenges pointed out by the report alluded to congestion of production facilities in urban centres, bottlenecks in infrastructure, shortages in skilled personnels and distribution of pirated materials which infringe on intellectual property rights.

“As India's creative economy stands on the brink of unprecedented growth and global impact, this report serves as a crucial roadmap for industry stakeholders and policymakers alike. The streaming VOD sector is not just reshaping entertainment; it's redefining India's place on the world stage,” MPA concluded.