Report: India’s SVOD Market Topped $1.4 Billion in Revenue in 2020 — Driven by Netflix & Co.

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.

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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.”

 

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