The Indian video entertainment industry is on the brink of a revolutionary transformation. Significant investments, rapid technological innovation, and shifts in consumer behaviour are propelling the video-streaming industry to new heights. A recent study projects that India’s video industry will achieve a valuation of $13 billion by the end of 2028.
Read on to learn more about this report and the future trajectory of the video streaming industry in India.
About the Report
A study commissioned by Prime Video and conducted by Media Partners Asia (MPA), titled ‘Beyond Screens – Streaming VoD’s Impact on the Creative Economy’, highlights the ongoing evolution of streaming services within the broader industry. The Indian video industry is expected to achieve an average annual growth rate of 8% until 2028, reaching a valuation of $13 billion. This growth will be largely driven by the streaming industry, which has made substantial annual investments in content development across multiple languages.
The video on demand (VoD) sector is projected to contribute half of the revenues during this period, with other sectors like TV, intellectual property owners, and online video platforms making up the remaining half.
What’s Happening?
Investments in content in India have significantly increased, from $3.3 billion in 2018 to $5.8 billion in 2023. Streaming giants like Netflix Inc. and Amazon.com Inc. are investing $500 million annually in India to produce local content. Additionally, Reliance Industries is investing $1 billion annually in the streaming sector. The VoD sector has the potential to create 2,80,000 jobs over the next four years.
Traditionally, content investments were focused on TV. However, the landscape is shifting rapidly, with online video services (excluding sports) accounting for 24% of total investments in 2024, a threefold increase since 2017. This is expected to further rise to 30% by 2028.
Challenges for the VoD Sector by 2028
Lack of Infrastructure: India lacks the quality physical infrastructure needed for a thriving video streaming industry. Most content production sites are concentrated in major cities, putting extreme pressure on the limited infrastructure.
Piracy: Illegal streaming platforms dominate the market, leading to substantial losses for producers and investors.
Lack of Talent: India also faces a shortage of skilled talent in critical areas like VFX, animation, subtitling, and dubbing, which serves as a significant obstacle to growth.
What’s Next?
Although investment in content production has increased significantly, it remains low compared to major development hubs like the USA, South Korea, and Japan. It is crucial for India to address these gaps in existing infrastructure to fully capitalise on the booming streaming industry.
That’s it for today. We hope you’ve found this article informative. Remember to spread the word among your friends. Until we meet again, stay curious!
*This article is for informational purposes only. This is not investment advice.
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