India's media & entertainment sector is expected to reach an industry size of US$ 100 billion by 2025 from the current level of US$ 17.85 billion, according to a recently released report by Boston Consulting Group (BCG) and Confederation of Indian Industry (CII). The sector has grown at a steady rate of around 10 per cent annually in the past five years. India currently has the third largest TV audience, second largest print circulation, and produces the highest number of films worldwide. "With a growth potential of 13-16 per cent YoY it has the potential to emerge as one of the largest employment providers, contributing significantly to the Gross Domestic Product (GDP)," said the CII-BCG paper - 'Vision 2020 Document on Media & Entertainment Sector'.
With a contribution of around 1.7 per cent to the country's gross domestic product (GDP), the media & entertainment segment employs nearly five million people directly and indirectly. In fact, unlike in the West, India's market retains vast absorption capabilities for new products and businesses, thus presenting new business opportunities for home-grown and international media and entertainment companies operating in the country. Currently, Indians spend 21 hours a week on live television, nominally less than the global average. However, there has been a shift in media distribution from conventional television and movie theatres to around 250 million digital screens (smartphones, tablets, laptops and PCs).
As the number of digital screens is further projected to reach 600 million by 2020, it is expected that the shift is consumption patterns will drive new business models and growth opportunities in the Indian media and entertainment industry.