The Indian media and entertainment (M&E) sector reached a volume of Rs 1.67 lakh crore in 2018, marking a growth of 13.4 per cent over 2017, according to the FICCI-EY report released on Tuesday.
With its current trajectory, the M&E sector is expected to cross Rs 2.35 lakh crore by 2021 at a compound annual growth rate of 11.6 per cent, said the report titled ‘A Billion Screens of Opportunity.’
While television retained its position as the largest segment, growth is expected to come from digital which will overtake filmed entertainment in 2019 and print by 2021. The report captures key insights from the exciting and fast-growing Indian M&E sector.
The sector continues to grow at a rate faster than the GDP, reflecting the increasing disposable income and economic growth.
India has the second highest number of internet users after China with 57 crore internet subscribers growing at 13 per cent annually. The report estimates that only 25 lakh consumers crore in India today are digital and will not normally use traditional media.
It is expected that this customer base will to grow to 50 lakh by 2021.
Traditional media companies spent 2018 building their customer data through second-screen interactive propositions, polls, house-to-house surveys and integration of third-party data. Digital consumption will grow and monetisation avenues will see great innovation to cater to the new Indian customer segments.
Telco bundling will drive consumption for a majority of Indian over the top (OTT) audience. Advertising growth outpaced subscription growth and is expected to comprise 52 per cent of the total pie by 2021.
Uday Shankar, Vice President of FICCI and Chairperson of FICCI Media and Entertainment Division, said the M&E sector is poised to kickstart a new era of growth as technological disruptions create new opportunities.
“New age digital media with direct-to-customer (D2C) capabilities are on an upward trajectory, making Indian M&E ever more vibrant against the backdrop of already popular broadcast TV and films. The sector’s incumbents need to innovate, transform and increase their relevance to mass and individual consumers,” said Shankar.
Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, said the M&E sector has a significant opportunity, given the country’s young demographics. The growth of digital infrastructure is further enabling Indians to fulfill the need for personal content consumption, across languages and genre.
“There is a large shift in consumer behaviour from mass-produced content to specific content defined to audience segments. The sector has an opportunity to serve a billion screens in India and globally,” said Pherwani. (ANI)
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