MUMBAI: With a steadily increasing demand for online video consumption, India is set to occupy a spot in the top ten (over-the-top) video markets in the world in four years, reported the Times of India quoting a study from global accounting firm PricewaterhouseCoopers (PwC).
The report titled Global Entertainment & Media Outlook 2018-2022 (Outlook) adds that the OTT video market in India is growing at a compound annual growth rate (CAGR) of around 23 per cent.
According to the report, OTT video revenue in India reached Rs 2,019 crore in 2017 and is likely to hit Rs 5,595 crore by 2022.
The report also notes that Indian entertainment and media industry is likely to reach Rs3.5 trillion (Rs353,609 crore) by 2022.
" India is expected to post an impressive growth in the entertainment and media Sector at a CAGR of around 11 percent, over the next five years. This is not only on the back of traditional media, such as TV subscription and advertising, cinema and advertising, expected to post robust growth, but also non-linear media such as OTT, gaming and Internet advertising expected to significantly high growth rates,” PwC India, partner & leader — entertainment & media, Frank D'Souza told Indiantelevision.com
The findings of the PwC study do not come as a surprise given the flurry of activity in the Indian OTT space in the last two years. Global giants Netflix and Amazon Prime Video, local brands like ALTBalaji, and those owned by broadcasters like Star India’s Hotstar, Sony Entertainment Television’s SonyLIV and Zee Entertainment Enterprises Limited’s ZEE5 are all locked in a fierce battle for India’s OTT pie.
Viu India country head Vishal Maheshwari said, "This report shines a great light on the OTT market. Original content will play a major role in the growth of the SVOD segment which projected to reach 81.6% of the total in 2022. If OTT players in India produce high quality content, consumers will likely end up with a handful of different subscriptions. Also, with one of the largest populations of millennials who are looking for quality and relatable alternative entertainment avenues, we believe India will surpass other nations to become the largest contributor to the growth of digital entertainment.”
This intense competition among the Video on Demand(SVoD) platforms was the primary reason behind subscription services generating over 70 per cent of the revenue in 2017. This trend, according to the report, is bound to grow further with SvoD contributing to 79.4% of the total market revenue by 2022.
India, however, did not find place in the top 10 global SVOD countries by revenue last year. However, for countries with the highest SVOD CAGR in 2017, India was on the number three spot after Indonesia and Philippines.
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