Indian online series like Netflix’s “Heeramandi,” Prime Video’s “Mirzapur” or Disney+ Hotstar’s “Bad Cop” could soon become more influential than Bollywood.
India's massive population and embrace of multiple forms of video streaming services have far-reaching implications for the country's content industries, its broader economy and the country's standing on the international stage, says a new in-depth report.
A study titled “Beyond the Screens – The Impact of On-Demand Video Streaming on the Creative Economy” was released on Wednesday. The study was commissioned by Prime Video India and conducted by Singapore-based Media Partners Asia.
The report paints a picture of a sector that now attracts nearly $6 billion a year in investment in local content, on par with South Korea, and shows that India is one of the top three markets in terms of net new subscriber additions and revenue growth for both Amazon and Netflix.
The upside is huge. Annual investment in content in India is just $4 per head of population. That compares to $80 in Japan, $120 in Korea, and $370 in the US.
After a growth spurt marked by mergers and acquisitions, aggressive gambling on premium content packages, and a diversification of pricing models, the focus is now on more rational practices, says the Online Video Operators Association (MPA). And now OTT revenues are growing.
The energy workers' union says the sector has the potential to become one of the world's largest employers – MPA says it could grow from its current 174,000 to 280,000 to 330,000 by 2028 – as it impacts allied industries.
Streaming has already overtaken the movie industry as a source of revenue for production companies.
“The true scale of India’s online video industry became clear when it became the lifeblood of the film industry during the Covid-19 pandemic, while theatres remained closed. Between 2020 and 2022, over 300 digital releases debuted, providing crucial cash flow to the industry. Today, film producers continue to thrive, with streaming revenues equaling 1.5 times their net share of theatrical box office. Similarly, investments in local original shows and series have rapidly gained ground, now accounting for over 50% of entertainment spend on pay TV (excluding movies and sports),” the report says. One of the charts in the report shows that dominance expands to 174% by 2028 as digital rights business expands and theatrical revenues level off.
The report says that OTT originals, of which more than 1,000 were produced between 2015 and 2023, have become “global ambassadors for India’s rich cultural tapestry, showcasing a variety of local stories through original series and films.” This applies both within the country and abroad.
The early years of streaming saw a focus on stories from the metropolitan areas of Maharashtra, Tamil Nadu, Andhra Pradesh and Telangana. But there has been a shift to the heartland and the more remote states. He cites shows like “Kohrra” (Netflix), set in Punjab; “Dahaad” (Prime Video), set in Rajasthan; “Panchayat” (Prime Video), set in Uttar Pradesh; “Kaala Paani” (Netflix), set in the Andaman and Nicobar Islands; and “The Last Hour” (Prime Video), set in the Northeast.
Indian content is increasingly being seen abroad – not just by diaspora audiences – and is winning international awards. For Prime Video, 25% of audience demand for Indian titles comes from outside India.
Throughout 2023, Prime Video’s Indian originals consistently held a spot in the global top 10 for all content, including English content, for 43 out of 52 weeks. In 2023, Netflix’s Indian films and series featured in the global top 10 for non-English content for 49 out of 52 weeks. Over 60 Indian stories, including 17 Netflix India originals, ranked in the global top 10 in the non-English category. ZEE5 Global saw a 46% year-over-year increase in original content viewing in the U.S.
Prime Video's “Inside Edge” was the first Indian fantasy show to be nominated for 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 huge opportunity to showcase their skills and creativity on the global stage. The success of the 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, Indian content is expected to become a major contributor to the global entertainment landscape, similar to the influence of Korean pop music, Korean dramas and [Japanese] “Anime,” the report said.
The report notes that live streaming has been great for actors — newcomers, veterans and some returnees — and other creative talent. Livestream champions include Vijay Verma, who has appeared in 12 shows, Jitendra Kumar (17) and Vikrant Massey (13). Mainstream film actors who have taken to streaming include Saif Ali Khan (“Sacred Games,” “Tandav”), Kareena Kapoor (“Jaane Jaan”) and Anil Kapoor (“The Night Manager,” “Thar”). Returnees include Madhuri Dixit Nene, Raveena Tandon and Sanjay Kapoor.
Others have succeeded in overcoming language barriers that once existed. They include Gujarati star Prateek Gandhi in Hindi films such as “Scam 1992: The Harshad Mehta Story” and “The Great Indian Crime,” and Bengali star Swastika Chatterjee, who has appeared in “Paatal Lok” and “Criminal Justice: Behind Closed Doors.”
“The flexibility of this format, with multiple episodes, seasons, parallel leads and subplots, provides actors with ample opportunities to delve into their characters. Actors, both seasoned and emerging, were once constrained by traditional production boundaries, but are now finding great popularity among family members,” according to the MPA report.
“All major OTT platforms have recognised the need for women writers and have launched a concerted effort to create a comprehensive database of women professionals, including cinematographers, production designers and editors, furthering the change. The inclusion of women in technical teams is now commonplace, marking a significant step towards addressing the disparities in the industry,” the report says. It also shows that more than 20 original web titles have been directed by women every year in India since 2020, though the number has not grown beyond that.
The number of women on screen has increased — from two in 2017 to 47 in 2023 — and now they are creating a positive feedback loop. Female-led shows include “Delhi Crime,” “Maharani” and “Daahad.”
Despite all the positives the report highlights, it points to a series of problems. These include the concentration of production in urban areas, outdated facilities, and a lack of technical talent.
The report recommends that “industry stakeholders and governments at both the regional and national levels collaborate to develop policies that stimulate the establishment of new, state-of-the-art production facilities across the country.”
“There is much to be done to address the fundamental issue of lack of artistic training at the grassroots level. Currently, most creative professionals acquire their skills through on-the-job training, primarily due to the absence of academic institutions that offer comprehensive content production courses. In order to unleash the full potential of the industry, there is a need to attract a wider pool of talent to studies in film and storytelling. This requires a collaborative effort from all stakeholders, including industry, government and educational institutions. The solution involves offering structured courses that nurture creative talent at the grassroots level as well as focusing on upskilling the existing talent pool.”
The report concludes with a warning about piracy and the economic benefits of combating it, which it warns could grow from $1.5 billion in 2023 to $3.3 billion in 2028.
“Implementing effective anti-piracy measures has the potential to unlock value on multiple fronts. Not only does it encourage a larger base of legitimate paying clients, it also expands the pool of users that advertisers can reach, thereby driving revenue growth for premium online video services. As a result, the economic situation of media owners improves, leading to reinvestment in commissioning higher-value content and increasing the size of projects. This in turn creates more jobs and contributes to the exchequer through increased tax revenues.”
