The Indian media industry has tremendous scope for growth in all the segments due to rising incomes and evolving lifestyles. Media is consumed by audience across demographics and various avenues such as television, films, out of home (OOH), radio, animation and visual effect (VFX), music, gaming, digital advertising, and print.
The Media & Entertainment industry is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 13.9 per cent during 2016-21 to reach US$ 37.55 billion. The industry provides employment to 3.5-4 million people, including both direct and indirect employment as of 2017.
Advertising expenditure in India is expected to grow 13 per cent year-on-year to Rs 69,346 crore (US$ 10.71 billion) in 2018 and Rs 1.07 trillion (US$ 16.70 billion) by 2020. The Indian digital advertising industry is expected to grow at a CAGR of 32 per cent to reach Rs 18,986 crore (US$ 2.93 billion) by 2020. India is the second largest television market in the world with US$ 10.14 billion in revenue in 2017. The Indian film industry is expected to grow at a rate of 10.4 per cent to become the third largest cinema market, after US and China by 2021.
The Government of India has supported this sector's growth by taking various initiatives such as digitising the cable distribution sector to attract greater institutional funding, increasing Foreign Direct Investment (FDI) limit from 74 per cent to 100 per cent in cable and Direct-to-home (DTH) satellite platforms, and granting industry status to the film industry for easy access to institutional finance.