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).
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.
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.
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.
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.
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.
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.
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.