India's Video Industry Skyrockets to $13 Billion in Revenue: Asia-Pacific's Dynamic Landscape

India's video industry has marked a significant milestone, amassing an impressive $13 billion in revenue in 2023, showcasing exponential growth and surpassing leading nations in the Asia-Pacific region such as Korea and Australia. This surge in revenue is forecasted to ascend further, reaching an estimated $17 billion by 2028, according to a comprehensive report by Media Partners Asia (MPA).

Transformative Growth in Asia-Pacific

The entire Asia-Pacific video sector demonstrated a 5.5% growth, collectively amounting to $145 billion in 2023. Online video sales surged by 13% to $57 billion, while TV revenues experienced more modest growth at less than 1%, totaling $98 billion. This data, compiled by MPA, highlights the region's evolving media and telecom landscape.

Driving Forces: SVoD and AVoD

Subscription video-on-demand (SVoD) expanded by 15% in 2023, reaching $28 billion, while advertising video-on-demand (AVoD) saw an 11% growth, tallying $29 billion. User-generated content and social video took the lion's share, commanding 80% of AVoD, while premium AVoD claimed 20% of the market.

Shifting Dynamics in Pay-TV

While pay-TV subscription fees experienced minimal growth, Southeast Asian markets witnessed contractions. Simultaneously, pay-TV advertising flourished in India but plummeted in Korea. Free TV advertising across APAC, excluding China, dipped by 2% in 2023, reflecting notable declines in Australia, Indonesia, and Korea.

Projections for the Future

The APAC video industry is projected to grow at a CAGR of 2.6% between 2023 and 2028, aiming to hit $165 billion by 2028. China, a significant player, is anticipated to mature with a $70 billion market, while India is expected to hold a $17 billion share, standing alongside Japan, Korea, Australia, and Indonesia in the market hierarchy.

Online Video Segment Surge

The APAC online video segment is poised to increase by 6.7% CAGR, estimated at $78.5 billion by 2028. TV industry revenues, however, might marginally contract at a 0.4% CAGR, reaching $86.5 billion by 2028, highlighting the evolving landscape of video consumption.

Traditional TV: Adapting or Fading?

Linear TV faces continued pressure as viewers migrate online. Several territories, including India, may not see a significant return of traditional TV ad dollars. However, local broadcasters are innovating with premium AVoD and even SVoD offerings, demonstrating a willingness to adapt and thrive in the evolving landscape.

Key Takeaways:

• India's video industry is booming, surpassing regional rivals and poised for further growth.

• Online video is driving the market, with SVoD and AVoD leading the charge.

• Local players like JioCinema and Zee-Sony are gaining traction in India.

• The online video sector is entering a phase of consolidation and rationalization.

• Traditional TV faces adaptation challenges but broadcasters are exploring new avenues like premium AVoD and SVoD.