Premium OTT segment set to drive 50% of new revenue growth in video entertainment market: Report

New Delhi: Premium online video-on-demand is set to fuel 50% of the new revenue growth of India's total video market, according to a Media Partners Asia (MPA) study.

The study, "Beyond Screens – Streaming VOD's Impact on the Creative Economy," commissioned by Prime Video India, stated that while historically, TV has led content investments in the video industry, online video (ex-sports) already claims 24% share in 2024, a 3x increase since 2017, and is expected to touch 30% by 2028. 

Further, with streaming revenues equating to 1.5x of movie producers’ net share from the theatrical box office, the growth in the video industry holistically is being driven by streaming, as mentioned in the report.

MPA in its report stated that not just this but even allied industries, like telecom, are seeing the impact of video streaming. “For instance, video has been the primary driver of data consumption for telcos, representing over 70% of their data traffic. The streaming revolution has already catalysed an unprecedented content boom, with over 1,500 original titles released across VOD platforms between 2016 and 2023.” 

This surge has created a ripple effect of employment opportunities, generating approximately 174,000 direct and indirect jobs in 2023 alone. “The industry's projected growth promises to open up 280,000 positions by 2028, with the potential to exceed 330,000 jobs as demand for specialized skills in VFX, animation, subtitling, and dubbing intensifies,” the study found.

The report highlighted that the premium video platforms are the true pioneers of the pan-India content movement, playing a significant role in expanding its reach nationwide. 

Crucially, the report highlights how these platforms are also emerging as powerful 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,” it stated.

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, added MPA in the study.

The report also highlights how the social and economic multiplier effect of streaming VOD can unlock future value for stakeholders in the creative and several allied industries, contingent on addressing key challenges: 

1. Expanding modern production facilities beyond major urban centres 
2. Fostering collaboration for infrastructure development 
3. Cultivating technical talent through innovative training programs and academic partnerships 4. Intensifying efforts to combat piracy and protect intellectual property