January 12, 2021
New data from Media Partners Asia found India’s subscription VOD market generated about $1.4 billion in revenue in 2020, with projections of $1.9 billion by 2025 — with 80% of the revenue generated by Netflix, Disney+ Hotstar and Amazon Prime Video. Indeed, 30% of Disney’s 88.6 million SVOD subscribers originate in India.
With 1.36 billion people, India trails just China as the most-populous country in the world. Unlike its erstwhile Communist neighbor to the East, India features open markets for SVOD highly coveted by Netflix, Disney and Amazon, among others.
The country has been a major focus for Netflix, with the SVOD pioneer investing more than $400 million in content and infrastructure over the past two years — including adding a Hindi language option.
“Subscription based online video services benefited significantly in 2020 as the country went into the lockdown,” Mihir Shah, VP at MPA, said in a statement. “Key players are investing in premium local content while leveraging sports, movie rights and aggressive consumer pricing to drive subscriber adoption.”
MPA said YouTube remains the market leader in ad-supported VOD, accounting for 67% of total online video advertising in 2020. Its market share is expected to decline to 55% in 2025 as domestic broadcaster-backed platforms and short-form video players expand market share.
MPA estimates that online video advertising reached an estimated $909 million in 2020, down about 2% from 2019. OTT content investment reached $700 million. With budgets for original and local content acquisitions increasing, costs are projected increase by 18% annually through 2025 to $1.6 billion.
“Local premium content and sports rights will help broadcaster-backed platforms gain share,” Shah said. “Increased reach and engagement with rural millennials will improve monetization for short-form video platforms.”