India's video industry revenues hit $13 billion in 2023: Report

India generated $13 billion in video industry revenues, surpassing Korea and Australia, but behind China and Japan in the Asia Pacific region. This revenue is projected to grow to $17 billion by 2028, as per a report by Media Partners Asia (MPA). The entire Asia Pacific video sector grew 5.5% to $145 billion in 2023, with online video sales increasing by 13% to $57 billion.

However, TV revenues grew less than 1% to $98 billion, according to MPA, a provider of advisory, consulting and research services, focusing on media and telecoms in Asia Pacific. Online SVoD or subscription video on demand grew 15% in 2023 to reach $28 billion or 12% excluding China to $12 billion while the AVoD or advertising video on demand pie grew 11% to $29 billion or 13%, excluding China, to $17 billion.

User generated content and social video continue to dominate the AVoD category with 80% share while premium AVoD saw 20% share in 2023, the report said. Pay TV subscription fees showed largely flat growth in APAC, excluding China with revenue declines in important markets such as India and Japan while almost every market in Southeast Asia contracted, the report said.

Pay TV advertising grew in India but was decimated in Korea. Free TV advertising was down 2% in 2023 across APAC excluding China with significant declines in Australia, Indonesia and Korea. Total APAC video industry revenues will grow at a CAGR of 2.6% between 2023 and 2028 to top $165 billion by 2028 or at a CAGR of 3.3%, excluding China, to top $95 billion, the report said.

' China will be increasingly mature and grow at 1.7% to reach $70 billion by 2028, followed by Japan ($35 billion), India ($17 billion), Korea ($14 billion), Australia ($11 billion) and Indonesia (close to $4 billion). The APAC online video segment is projected to grow at 6.7% CAGR to reach $78.5 billion in value by 2028 or 9.2% excluding China to reach $46 billion by 2028.

TV industry revenues, including advertising and subscription, will marginally contract at 0.4% CAGR between 2023 2028 to reach $86.5 billion by 2028 or at 1% CAGR to $49 billion excluding China. Scaled TV markets are expected to still grow but at a much smaller pace include India, Japan, Korea and Indonesia.

However, there remain significant downside risks in TV advertising in Indonesia, India and Korea. “The Asia Pacific video industry continues to experience a secular shift from TV to online in terms of engagement and monetization," said MPA managing and executive director Vivek Couto said in a statement.

Improved connectivity, rising connected TV penetration combined with the growth of local creator economies, investment in premium local content as well as the wide availability of premium sports streaming will continue to drive dollars and eyeballs online, he added. According to MPA, eight companies had an aggregate 65% share of the APAC online video revenue pie in 2023: Amazon Prime Video, ByteDance (including TikTok), Disney, Google owned YouTube, iQIYI, Meta (video), Netflix and Tencent.

Excluding China, certain local players are competing successfully and have scale potential, including JioCinema and Zee Sony in India. New investments made by strategic and private equity in the online video sector in China, India, Indonesia, Japan, Korea and Southeast Asia are helping local and regional companies compete.

“The online video sector is also starting to rationalize with price increases in the SVoD category along with disciplined content and marketing investment, the introduction of ad tiers, new strategies to drive monetization and the start of local market consolidation in Korea, Japan and India," Couto said.

Amid the shift to online and the growth of connected TV, traditional linear TV is under pressure with several territories not expected to see a meaningful return of TV ad dollars. Local broadcasters are capitalizing on premium AVoD and in certain cases, SVoD, most notably in Australia, India, Indonesia and Japan, he said.

“Pay TV subscription revenue has yet to be significantly disrupted by the growth of SVOD outside of markets such as Australia. However, historically strong markets such as India and Korea are under pressure," Couto added. Livemint tops charts as the fastest growing news website in the world to know more.

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