Indias $6 Billion Streaming Sector Is Having Transformative Impact on Film, TV, Talent and

July 2024 · 9 minute read


Indian streaming series such as Netflix’s “Heeramandi,” Prime Video’s “Mirzapur” or Disney+ Hotstar’s “Bad Cop,” could soon be more influential than Bollywood.

India’s massive population and its embrace of multiple forms of video streaming are having far-reaching implications for the country’s content industries, its wider economy and the country’s position on the international stage, says an in-depth new report.

“Beyond Screens – Streaming VoD’s Impact on the Creative Economy,” was published Wednesday. It was commissioned by Prime Video India and conducted by Singapore-based Media Partners Asia.

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The report paints the picture of a sector that is now attracting close to $6 billion a year of local content investment, on a par with South Korea, and demonstrates that India is a top three market in terms of net new subscriber additions and revenue growth for both Amazon and Netflix.

The upside is huge. Annual content investment in India is just $4 per head of population. That compares with $80 in Japan, $120 in Korea and $370 in the U.S.

MPA says that, after a dash for growth characterized by mergers and acquisitions, aggressive gambles on prime content packages, and diversity of pricing models, the focus is now on more rational practices. SVOD revenues are now increasing.

The sector has the potential to become a major employer – MPA says that it could increase from its 174,000 current figure to 280,000-330,000 by 2028 – as it impacts allied industries.

And streaming has already overtaken the film industry as a source of revenue for production firms.

“The real scale of India’s online video industry came into focus when it became the film industry’s lifeline during the Covid-19 pandemic, while theatres remained closed. Between 2020-2022, over 300 digital-first releases debuted, providing crucial cash flow to the industry. Today, movie producers continue to thrive, with streaming revenues equating to 1.5x of their net share from theatrical box office. Similarly, investments in local original shows and series have rapidly gained ground, now representing over 50% of entertainment spends on pay-TV (excluding movies and sports),” the report says. One of the report’s graphs shows that outperformance expanding to 174% by 2028 as digital rights business expands and theatrical revenues reach a plateau.

Online video platforms’ Originals, of which more than 1,000 were produced between 2015-2023, have become “global ambassadors of India’s rich cultural tapestry, showcasing a diverse range of local stories through original series and movies,” the report says. This applies within the country and overseas.

The early years of streaming saw focus on stories from the major metropolitan regions of Maharashtra, Tamil Nadu, Andhra Pradesh and Telangana. But a shift has taken place, into the Hindi heartland and more remote states. It cites shows such as “Kohrra” (Netflix) set in Punjab; “Dahaad” (Prime Video) set in Rajasthan; “Panchayat” (Prime Video) set in Uttar Pradesh; “Kaala Paani” (Netflix) set in Andaman & Nicobar Islands; and “The Last Hour” (Prime Video) set in the Northeast.

Indian content is increasingly being watched overseas — not just by diaspora audiences – and winning international awards. For Prime Video, 25% of audience demand for Indian titles comes from outside India.

Throughout 2023, Prime Video Indian originals consistently secured spots in the Global Top 10 list for all content, including English, for 43 out of 52 weeks. In 2023, Indian films and series released by Netflix featured in the Global Top 10 for non-English content for 49 out of 52 weeks. More than 60 Indian stories, including 17 Netflix India originals, ranked among the top 10 globally in the non-English category. And ZEE5 Global has experienced a 46% year-on-year increase in original content viewing in the U.S.

Prime Video’s “Inside Edge” was the first Indian fiction show to be nominated at the Emmys, followed by Netflix’s “Sacred Games,” “Four More Shots Please” and “Made in Heaven” in subsequent years.

“Indian talent, including actors, writers, and directors, now have a significant opportunity to showcase their skills and creativity on a global stage. The success of entertainment industries in South Korea and Japan has put Asian economies, including India, in the spotlight for their potential in globalizing content. As a result, it is anticipated that Indian content will become a major contributor to the global entertainment landscape, similar to the influence of K-pop, K-dramas and [Japanese] Anime,” says the report.

The report suggests that streaming has been great for actors – new, veterans and some making a comeback – and for other creative talent. Heroes of streaming have included Vijay Verma, who has appeared in 12 shows, Jitendra Kumar (17) and Vikrant Massey (13). Mainstream film actors who have taken the streaming route include Saif Ali Khan (“Sacred Games,” “Tandav”), Kareena Kapoor (“Jaane Jaan”) and Anil Kapoor (“The Night Manager,” “Thar”). Comeback have included Madhuri Dixit Nene, Raveena Tandon and Sanjay Kapoor.

Still others have crossed previously higher language barriers. These include Gujarati star Pratik Gandhi in pan-Indian titles including “Scam 1992: The Harshad Mehta Story” and “The Great Indian Murder,” and Bengali star Swastika Chatterjee appearing in “Paatal Lok” and “Criminal Justice: Behind Closed Doors.”

“The format’s flexibility, with multiple episodes, seasons, parallel leads, and sub-plots, offers actors ample chances to delve into their characters. Actors, both seasoned and emerging, once limited by traditional production boundaries, are now finding household popularity,” the MPA report says.

“All major OTT platforms have recognized the need for women writers and launched a concerted effort to create a comprehensive database of female professionals, including cinematographers, production designers, and editors, fostering change. Today, the inclusion of women in technical teams is commonplace, marking a significant step towards addressing industry disparities, the report says. It show that more than 20 web originals have been directed by women each year in India since 2020, though the number has not grown further.

Women on-screen have increased – from two in 2017 to 47 in 2023 – and are now creating a positive feedback loop. Women-led shows included “Delhi Crime,” “Maharani” and “Daahad.”

Still, for all the positives it catalogs, the report points to a series of problems. These include a concentration of production in metropolitan areas, aging facilities and a restricted technical talent pool.

“Industry stakeholders and governments both state and central, must collaborate on developing policies that incentivize the establishment of new state-of-the-art production facilities throughout the country,” the report recommends.

“Much more needs to be done to address the fundamental issue of the lack of technical training at the grassroots level. Currently, most creative professionals acquire their skills through on-the-job training, primarily due to the absence of academic institutes offering comprehensive content production courses. To unlock the industry’s full potential, there is a need to attract a broader talent pool for studies in cinema and storytelling. This necessitates a collaborative effort from all stakeholders, including industry, government, and educational institutions. The solution involves introducing structured courses that nurture creative talent at the grassroots level as well as focusing on upskilling the existing talent pool,” it recommends.

It rounds off with a warning about piracy and the economic benefits of tackling it, which it warns could grow from an estimate $1.5 billion in 2023 to $3.3 billion in 2028.

“Implementing effective anti-piracy measures holds the potential to unlock value on multiple fronts. It not only encourages the growth of a larger base of legal paying customers but also expands the pool of addressable users that advertisers can engage with, thereby driving revenue growth for premium online video services. Improved economics for media owners, as a result, lead to reinvestment in the commissioning of higher value content and a greater volume of projects. This in turn results in more job creation and higher contribution to the exchequer through increased tax receipts,” it said.

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