Video OTT market in India to be among top 10 video OTT market by 2022, study: Video OTT market in India which mainly includes content streaming services, is expected to be ranked among the top 10 markets internationally with a market size of USD 823 million (almost Rs 5,363 crore) by 2022, an Assocham-PwC joint study said on Thursday.
$823 mn: India’s Video OTT market set to grasp in following 3 years
22.6%: CAGR of video OTT market seen for the duration of 2017-22
10.1%: global video OTT market CAGR seen in the course of 2017-22
859 mn: projected smartphone users by the year 2022
$22: billion India’s television industry growth likely to touch in 2022
It said, “The Indian video OTT market is at a fairly nascent stage, the video OTT market globally has entered into the growth phase of the market life cycle. With a CAGR of 22.6 per cent during the period of 2017–2022, the Indian video OTT market is poised to outperform the global video OTT market, which is pegged to have a CAGR of 10.1 per cent during the same period.”
The study was titled ‘Video on Demand: Entertainment reimagined’ and the study in addition noted that by the year 2022, the Indian video OTT market is going to be amongst the top 10 markets internationally with a market size of USD 823 million (Rs 5,363 crore).
Video OTT (over the top) services in India comprises of the likes of Netflix, Amazon Prime Video, YouTube and many more.
The report further said, “The five fundamental drivers of this convergent business model are uninterrupted connectivity, mobile devices becoming the primary source of content consumption, the need to move away from traditional revenue streams, value shifting from content creators to platforms, and ability to provide a personalised offering to the consumer.”
For the duration of the same time, the number of smartphone operators in the nation is estimated to reach 859 million by the year 2022 from 468 million users in 2017, increasing at a compound yearly growth rate of 12.9 per cent.
With lower-than-ever data tariffs and growing smartphone diffusion in the nation, it is safe to accept that the video on demand (VoD) market is going to be an important recipient of these growths, the study said.
“Internet consumption is clearly on the rise in India. The important factor for the VoD industry is the availability of devices that are compatible with online video viewing. A large volume of consumption occurs on smartphones,” it added.
Talking apart from the smartphones, tablets are an additional promising device for the VoD industry.
The study further said, “However, India has just about 5.3 per cent penetration as of 2017, and this is expected to go up to just about 10 per cent in 2022. The low penetration is definitely a missed opportunity for players as tablets offer fairly larger screens which are better for consuming HD content as compared to smartphones.”
In addition, the study also further pointed out that television is the major sub-segment within the entertainment and media industry, and is going to last in order to continue so in the near future.
“This proves that India will continue to ride on traditional forms of entertainment despite the disruption in the industry. Television is one of the most economical forms of content consumption, making it a popular source of entertainment for rural India,” quoted the joint study.