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. India ranked at 15th in the world in music industry and is expected to enter into the top 10 music markets by 2022. Newspaper readership in India has increased by 4.4 per cent to 425 million in Q1 2019 from 407 million in 2017.
The Media & Entertainment industry is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 13.10^ per cent during 2018-23 to reach Rs 266,020 crore (US$ 39.68 billion) in FY23 from Rs 143,600 crore (US$ 22.28 billion) in FY18. The industry provides employment to five million people, including both direct and indirect employment as of 2017.
Advertising revenue in India is expected to grow 15.20 per cent during 2018-2023, to reach Rs 123,270 crore (US$ 18.39 billion) in FY23 from Rs 60,830 crore (US$ 9.44 billion) in FY18. India digital advertising market has reached Rs 10,819 crore (US$ 1.3 billion) in 2018. India's advertisement market is projected to grow 10.62 per cent year-on-year to Rs 85,250 crore (US$ 12.06 billion) till 2021. India’s advertisement spending is projected to grow 15 per cent year-on-year to reach Rs 72,169 crore (US$ 10.28 billion) in 2019@. India’s digital revenues are expected to reach US$ 394.22 million by 2021. India is the largest television market in the world with Rs 65,190 crore (US$ 10.11 billion) in revenue in FY18. The Indian film industry is expected to grow at a CAGR of 7.60^ per cent during 2018-2023. The Indian media and entertainment industry are expected to reach around Rs 451,373 crore (US$ 64.89 billion) by 2023. India’s video streaming industry is expected to grow at a CAGR of 21.82 per cent by 2023.
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. FDI inflows into the Information and Broadcasting sector during April 2000 to March 2019 rose up to US$ 8.38 billion. As stated in Union Budget 2019-20, Government of India will launch dedicated channel for start-ups.
Note: * - according to Digital Advertising Report by Dentsu Aegis Network, ^ - CAGR is calculated from Rs figures, @ - according to Zenith Global Advertising Expenditure Forecasts