iWorld
Indian online video to grow to US 1.6 bn at 35 percent CAGR by 2022
MUMBAI: Media Partners Asia (MPA) estimates that the Indian online video industry generated approximately US$ 230 million in total sales in 2016, and is on course to reach approximately US$340 million in 2017. MPA projects a 35 percent CAGR to 2022 as total industry sales top US$1.6 billion.
Further, the MPA report entitled Asia Pacific Online Video & Broadband Distribution, says that the Asia Pacific online video market will scale to US$ 46 billion by 2022, with China contributing more than 75 percent. MPA indicates that online video revenues, including net advertising and subscription fees, will grow at a 21 percent CAGR across the region between 2017 and 2022, climbing from US$17.6 billion in 2017 to US$46 billion by 2022.
Said Mumbai-based MPA Vice President Mihir Shah: “In 2016, Jio’s 4G launch intensified competition slashing mobile data prices. The currency demonetization initiative by the government, implemented towards the end of 2016, also helped spur a significant improvement in the digital payments infrastructure in the country. Both these events have served as catalysts for online video consumption and monetization. By 2022, SVOD will account for 17 percent of the online video market in terms of revenues. Online video consumption will remain dominated by YouTube with domestic challengers Hotstar and Voot performing robustly but in a distant second and third place, respectively.”
China will continue to contribute the lion’s share of customers and revenues to the online video industry in Asia Pacific, garnering 85 percent of SVOD customers and 78 percent of online video sector revenues by 2022. Such growth and scale reflects: (1) Wide-scale investment in original and acquired OTT content, including early and exclusive windows; (2) A weak market for traditional pay-TV, creating an opportunity for premium content distribution and monetization through online video; (3) Steady improvements in broadband reach and infrastructure, as well as increased adoption of smart TVs and set-top boxes; (4) Consumer adoption of seamless payment systems, developed by the owners of some of the most popular online video services, who are also leveraging data analytics and bundling to create new cohesive new ecosystems for content, commerce and communication. China’s online video market is largely ad-supported but with subscription’s share of revenue hitting 33 percent in 2017 (compared to 18 percent in 2015 and 26 percent in 2016), prospects for a demand-driven subscription model remain bright.
Japan, Australia, India, Korea and Taiwan will emerge as the markets ex-China with the most scale in online video revenues and distribution. This reflects robust payment infrastructure, including in India, along with the growth of advertising-funded platforms and the steady rise of premium, subscription-based platforms. Piracy and under-developed payment infrastructure will continue to limit growth across much of Southeast Asia although increased broadband penetration (led by mobile connectivity) positions telcos as key partners to drive online video revenues. Online video advertising, in particular, remains a scalable and vital opportunity in Southeast Asia while SVOD revenues will grow rapidly from a very low base.
Said MPA executive director Vivek Couto: “Advances in telecoms and payment infrastructure continue to point the way forward for the online video sector in Asia Pacific, although business models and regulations continue to evolve in a sector that’s still nascent in most territories. Key trends are emerging: (1) Services anchored to nimble, robust and sustainable business models – built around strong execution and scalable content consumption – are rising to the top; (2) Access to local and Asian content is increasingly essential in almost all markets, while demand for recent windows for franchise-based Hollywood product is also robust. Demand for original content along with movies, kids content and sports is also becoming more important; (3) Content curation, packaging and pricing remain critical, along with brand equity. Telecom operators, which have been focused on either paid conversion or mass reach to drive value, are increasingly moving to tighter payment per consumption models in pursuit of ROI across key video partnerships; (4) The value of branded destinations will increase rapidly within the online video ecosystem as platforms and operators forge partnerships with broadcasters and content players; (5) Leading local and regional players ex-China will start to capitalize on a massive online video advertising opportunity, hitherto dominated in the main by YouTube.”
According to MPA, the online video advertising pie in Asia Pacific will grow from under US$12 billion in 2017 to more than US$25 billion by 2022. Ex-China, this opportunity equates to US$7 billion by 2022 versus US$3 billion in 2017. YouTube and to some extent Facebook will remain dominant, with an average 75 percent market share of online video advertising between them ex-China by 2022, versus 85 percent in 2017. Japan, India and Australia, followed by Korea, will be the biggest online video ad markets after China over this period. In SVOD, consumer spend ex-China will accelerate from a low base as revenues reach ~US$3.1 billion in 2022 versus US$1.5 billion in 2017. Japan and Australia will account for a combined 55 percent of value by 2022 versus 68 percent in 2017. Southeast Asia’s contribution will climb rapidly from a mere 9 percent in 2017 to 15 percent by 2022. Indirect SVOD revenues, which reflect wholesale fees paid by telcos to online video platforms as part of bundling and integration agreements, will remain important in the medium term but become less significant longer-term. Even in the short-to-medium term, telecom operators are recalibrating their approach to ROI with a greater focus on payment per consumption models. Ex-China, SVOD indirect fees will grow from only US$110 million in 2017 to US$213 million by 2022. Average SVOD subscriber penetration of the population will only reach 9.8 percent in 2017. This should increase to ~19 percent by 2022 as total SVOD subs, including direct and indirect connections, scale from 341 million in 2017 to 676 million by 2022 (from 58 million to 102 million ex-China).
Exponential growth of mobile internet connectivity, combined with a slow but steady transition to next-generation fixed broadband, will provide a significant boost to online video consumption, reach and monetization. According to MPA, data revenues across fixed and mobile networks in Asia Pacific are sizable at US$236 billion in 2017. These will reach US$318 billion by 2022, with the ex-China market size at ~US$175 billion by 2022 versus US$126 billion in 2017. Average mobile broadband penetration will reach 73 percent per capita by 2022 versus 59 percent in 2017, with some of the biggest growth coming from India, Indonesia, the Philippines, Thailand and Vietnam. Average fixed broadband penetration will grow steadily from 44 percent to 52 percent of households over 2017-22, with the focus increasingly on upgrading high-speed networks using fibre and next-generation cable technologies.
Gaming
India’s new online gaming rules take effect today, banning money games and creating a regulator
The rules, in force from today, separate e-sports from gambling and impose jail terms and stiff fines on violators
NEW DELHI: India’s online gaming sector woke up this morning to a new reality. The Promotion and Regulation of Online Gaming Rules, 2026, came into force today, May 1st, turning a year of legislative intent into enforceable law. The message from New Delhi is blunt: e-sports and social games are welcome; online money games are not.
The rules operationalise the Promotion and Regulation of Online Gaming (PROG) Act, passed by Parliament in August 2025. Together, they represent the most sweeping regulatory intervention India has made in its booming digital gaming market, one that generated Rs 23,200 crore in 2024 and is projected to grow at a compound annual rate of 11 per cent to reach Rs 31,600 crore by 2027. The stakes, in every sense, could not be higher.
A sector out of control
The urgency behind the legislation is not hard to find. An estimated 45 crore Indians have been affected by online money gaming platforms, with losses exceeding Rs 20,000 crore. Addiction, financial ruin, money laundering, and suicides have all been linked to the sector. Seventy-seven per cent of the market’s revenues came from transaction-based games, a figure that made regulators deeply uneasy.
The government’s response, effective as of today, is categorical. Online money games, whether based on chance, skill, or any mix of the two, are banned outright. So is their advertising, promotion, and facilitation. Banks and payment processors are barred from handling related transactions. Unlawful platforms can be blocked under the Information
Technology Act, 2000.
The penalties are designed to sting. Offering or facilitating online money games can attract up to three years in jail and a fine of up to Rs 1 crore, or both. Repeat offenders face a minimum of three years, extendable to five, with fines between Rs 1 crore and Rs 2 crore. Advertising such games carries up to two years in prison and fines of up to Rs 50 lakh, with repeat violations attracting higher penalties still. Cyber cell officers at state and union territory levels, including at police station, district, and commissionerate levels, are empowered to investigate offences.
The new sheriff in town
At the centre of the new framework sits the Online Gaming Authority of India, a digital-first regulator constituted as an attached office of the Ministry of Electronics and Information Technology, headquartered in Delhi. It is chaired by the additional secretary of MeitY and includes joint secretary-level representation from home affairs, finance, information and broadcasting, youth affairs and sports, and law and justice, a deliberately multi-sectoral design built for a complex sector.
The authority’s powers are broad. It will maintain and publish lists of online money games, investigate complaints, issue directions, orders, and codes of practice, hear appeals on user grievances, and coordinate with financial institutions and law enforcement to ensure effective and timely action.
Its decisions on game classification are to be completed within 90 days, a time-bound commitment that industry players have welcomed after years of regulatory ambiguity. Classification can be triggered by the authority acting on its own initiative, by an application from a service provider, or by a notification from the central government. Games will be assessed on objective factors: whether stakes are involved, whether players expect monetary winnings, the revenue model, and whether in-game assets can be monetised outside the game. The outcome is recorded in a determination order specific to the game and provider.
E-sports gets its moment
While the crackdown on money gaming dominates today’s headlines, the rules also carve out a structured path for e-sports and online social games. Registration, required when notified by the central government, applies to all games offered as e-sports and is based on factors including risk to users, scale, financial transactions, and country of origin. A successful application yields a digital certificate of registration with a unique number, valid for up to ten years. Service providers must display registration details, designate a point of contact, comply with data retention requirements, and follow directions on facilitating payments.
Online money games are explicitly ineligible for recognition or registration as e-sports under the National Sports Governance Act, 2025. The separation is deliberate, and the industry has noticed.
Akshat Rathee, co-founder and managing director of NODWIN Gaming, called today’s operationalisation “encouraging,” pointing to publisher-led registration of esports titles and a time-bound determination process as creating “much-needed certainty for all stakeholders.” He added that the “continued emphasis on clearly separating esports from online money gaming is critical in preserving the integrity of competitive gaming as a skill-driven discipline.” He described it as “a proud moment to see official acknowledgement of the broader benefits of responsible esports and gaming, from building confidence, discipline, and teamwork to creating new career pathways for young talent,” and said the framework sets “a strong foundation for the ecosystem to scale in a more structured and globally competitive manner.”
Animesh Agarwal, co-founder and chief executive of S8UL, was equally bullish. “This clarity is critical in unlocking investor confidence and attracting multi-genre brands, while also enabling organisations to take a more long-term view, whether in investing in talent, scaling teams, or building globally competitive formats,” he said, adding that it “strengthens trust among audiences and mainstream stakeholders, positioning esports not just as a sport, but as a fast-growing youth entertainment category in India.”
But Agarwal urged caution on several fronts. There remains limited clarity around financial frameworks, particularly in how esports earnings are treated by banks and financial institutions. A well-defined pathway for the formal recognition or registration of esports teams is still evolving, as are structured player protections. He also called for smoother visa processes for esports athletes competing in international tournaments and for government support in developing infrastructure, including bootcamps, training facilities, and access to high-performance equipment across titles.
Vishal Parekh, chief operating officer of CyberPowerPC India, pointed to downstream effects on education and careers. “With formal recognition and policy backing, colleges and institutions are more likely to take the sector seriously, whether through dedicated esports infrastructure, training programmes, or curriculum integration,” he said, adding that this helps students view gaming as a viable career spanning roles across competitive play, content, game development, and allied industries. He noted that as esports gains prominence in global multi-sport events, the framework strengthens India’s position in international competitive gaming, and called on the ecosystem to provide the right infrastructure and access to high-performance hardware to unlock opportunities in talent development and job creation.
Protecting users, one safeguard at a time
The rules introduce a layered system of user protections calibrated to the risk profile of each game. These include age verification, age gating, time restrictions, parental controls, user reporting tools, counselling support, and fair-play and integrity monitoring. Service providers must disclose their safety features and internal grievance mechanisms when applying for determination or registration.
A two-tier grievance redressal system sits atop these safeguards. Users who are dissatisfied with a platform’s resolution can escalate to the authority within 30 days. The authority aims to dispose of such appeals within a further 30 days. A second appeal lies before the secretary of MeitY, who must also endeavour to resolve matters within 30 days. Enforcement proceedings will be conducted in digital mode wherever possible, with cases targeted for resolution within 90 days from receipt of a complaint.
Penalties under the framework are proportionate, taking into account gain from non-compliance, loss to users, the gravity of the offence, and whether violations are recurring. Mitigation efforts by service providers will also be considered when determining penalties. All penalties imposed under the Act will be credited to the Consolidated Fund of India.
The money follows the rules
For investors and founders, the implications are immediate and significant. Sagar Nair, head of incubation at LVL Zero Incubator, a 100-day sprint designed to accelerate early-stage gaming startups across India, argues that with real-money gaming now prohibited, capital will shift “away from transaction-driven models toward content-led, IP-driven, and global-first gaming businesses.” He acknowledged trade-offs: for operators with exposure to real-money formats, the market becomes more restrictive in the near term. But he argued that by clearly separating esports and non-money gaming from online money gaming, “India is positioning itself as a hub for responsible, creative, and scalable game development.” The opportunity, he said, is “to view India not just as a monetisation-first market, but as a talent, IP, and scale market,” adding that “for founders and investors willing to adapt, this shift could ultimately strengthen India’s position in the global gaming landscape.”
The government frames the wider impact in equally ambitious terms: a boost to India’s creative economy and digital exports, new career pathways for young people, protection for families from predatory platforms, and a stronger voice in global digital governance. India, it argues, offers a model for other countries grappling with the same tensions between gaming’s economic promise and its social risks, one that shows innovation and strong safeguards need not be mutually exclusive.
Whether the framework delivers on those promises will depend on enforcement, always the hardest part. But from today, the architecture is firmly in place: a regulator with teeth, a classification system with deadlines, penalties designed to deter, and a clear dividing line between games that build careers and games that destroy finances. For a sector that has grown fast and governed itself loosely, May 1st, 2026 is the day the free ride ends.
