India’s online video market is expected to see a near 5x growth from $340 million in 2017 to $1.6 billion in 2022, at a compounded annual growth rate of 35%, keeping this fact in mind China's Alibaba is planning to launch an over the top (OTT) video service in India.

According to a report by The Ken, the video service will be powered by Paytm and UCWeb, a mobile internet subsidiary of Alibaba Group. The OTT service will also utilise the technology from Alibaba’s native OTT app in China -- Youku Todou.

The report further elaborated that senior officials of Alibaba from China have visited India over the last few months to understand the market. The officials have also met content creators and production houses in Mumbai.

Alibaba could use user-generated content for its OTT service, which is quite similar to the content strategy it followed for UC Web, which offers services like UCNews and UC Browser.

India's OTT video segment has about 30 providers including both domestic and foreign entities including Netflix, Amazon Prime, Hotstar and Voot, among others.

According to a recent survey by Counterpoint Research, the valuation of the over the top (OTT) video content market in India is at $280 million with nearly 100 million subscribers. This is nearly 150 million less than the number of monthly active users on Facebook.

In India, while Star India’s Hotstar stands first, Viacom18’s Voot stands second, followed by Amazon Prime Video, Sony Liv and Netflix.

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