India video market growing @9.5% CAGR

By VARINDIA - 2021-12-08

India video market growing @9.5% CAGR

India’s TV channel business, which stands at $5 billion in 2021, is poised to $18 bn in revenue opportunity in the next 5 years. According to Media Partners Asia, the size of India’s total video market currently stands at $11.6 billion. Growth in future subscription revenues however will come largely from online video. As the market expands, we will continue to see more consolidation, particularly in the traditional television sector, but at the same time entry of new foreign players will continue to expand the video pie and the share of online video.

 

India’s TV channel business which stands at $5 billion in 2021 is poised to grow at 11% CAGR over the next five years to $8.5 billion. "However, it is important to know that this has largely been fuelled by advertising, the subscription growth in the industry is under huge pressure for broadcasters and also for operators because many have been shackled by regulations. And hopefully these will be eased in the coming months, allowing broadcasters to invest more in quality content for TV screens.



Secondly, India’s online video ad revenue market will surpass the $1 billion mark this year. "Over the last 24 months, besides YouTube, Facebook, and the large direct to consumer brands, we have seen new categories of AVOD players expanding the market. Short video platforms are a hit in rural India and serve as an important conduit for advertisers to reach audiences in these markets.

 

Similarly, telcos are now slowly looking to monetize their reach. So as these players across various buckets of AVOD services build scale, the market for online video advertising will continue to expand and grow at 16.5% CAGR or about 2.5x GDP growth over next five years. On the SVOD side, subsidised telco bundles as well as growing investments in local original content have opened up the subscription market opportunity.

 

"By 2026, India will have more than 200 million direct SVOD subscriptions or let’ say 1 in every 4 broadband subscribers will pay for online entertainment and sports content. Going forward, the upcoming IPL, BCCI and ICC media rights renewals will reshape the competitive landscape in the video market.


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