Indian media industry has tremendous scope for growth in all the segments due to rising income and evolving lifestyle. According to an EY report, the Indian media and entertainment (M&E) sector stood at Rs. 1.38 trillion (~ US$ 18 billion) in 2020 and is estimated at Rs. 1.79 trillion (~ US$ 24 billion) in 2021. Further, it is projected to grow to Rs. 2.23 trillion (~ US$ 29 billion) by 2023, due to acceleration of digital adoption among users across geographies.
The market is projected to increase at a CAGR of 17% between 2020 and 2023.
In FY20, digital and online added revenue stood at Rs. 26 billion in the M&E sector and their contribution to the sector increased to 23% in 2020 from 16% in 2019.
Within the M&E sector, Animation, Visual Effects, Gaming and Comic (AVGC) sector is growing at a rate of ~29%, while the audiovisual sector and services is rising at the rate ~25%; is recognised as of one of the champion sectors by the Government of India.
Advertising revenue in India is projected to reach Rs. 915 billion (US$ 12.98 billion) in 2023, from Rs. 596 billion (US$ 8.46 billion) in 2020.
India’s subscription revenue is projected to reach Rs. 940 billion (US$ 13.34 billion) in 2023, from Rs. 631 billion (US$ 8.95 billion) in 2020.
According to 'India: Online Video Trends and Omdia Consumer Research Highlights' report published by Omdia (published in 2021), the Indian SVOD market, with OTT video subscriptions, reached ~62 million in 2020 from ~32 million in 2019. According to EY-Parthenon, India’s publishing industry is likely to reach Rs. 80,000 crore (US$ 10.74 billion) by 2024.
Key growth drivers included rising demand for content among users and affordable subscription packages.
The Indian gaming industry stood at US$ 930 million in 2020 and is expected to reach US$ 3.8 billion by 2024. The online gaming market in India is projected to reach Rs. 155 billion (US$ 2.12 billion) by 2023, from Rs. 76 billion (US$ 1.08 billion) in 2020, due to rapid increase in consumption.
The music industry is expected to reach Rs. 23 billion (US$ 330 million) by 2023, from Rs. 15 billion (US$ 210 million) in 2020 at a CAGR of 15% between 2020 and 2023.
Growth of the sector is attributable to the trend of platform such as YouTube that continues to offer recent and video content-linked music for free, which is expected to drive the paid OTT music sector reaching ~5 million end-users by 2023, generating revenue of ~Rs. 2 billion (US$ 27 million).
By 2025, the number of connected smart televisions are expected to reach ~40-50 million. 30% of the content viewed on these screens will be gaming, social media, short video and content items produced exclusively for this audience by television, print and radio brands.
According to the FICCI-EY media and entertainment industry survey, those who watch online videos through bundled packages (online video services bundled with mobile and broadband connections) will account for half of all online video viewers (399 million) by 2023, up from 284 million in 2020.
As of 2020, India registered ~803 million online video viewers, including streaming services and videos on free platforms such as YouTube. Mobile video viewers stood at 356 million in 2020, driven by rising number of users preferring video content over the last few years.
OTT video services market (video-on-demand and live) in India is likely to post a CAGR of 29.52% to reach US$ 5.12 billion by FY26, driven by rapid developments in online platforms and increased demand for quality content among users.
The Government of India has supported this sector's growth by taking various initiatives such as digitizing the cable distribution sector to attract greater institutional funding, increasing Foreign Direct Investment (FDI) limit from 74% to 100% 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 in the information and broadcasting sector (including print media) stood at US$ 9.5 billion between April 2000 and March 2021.
As part of the expansion to include all digital platforms and digital (OTT) players under a single roof, in May 2021, the Indian Broadcasting Foundation (IBF) announced the move to be renamed as the Indian Broadcasting and Digital Foundation (IBDF).
As per the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, IBDF would also form a self-regulatory body (SRB) soon.
According to Inc42 Plus, the media and entertainment sector received a total funding of US$ 877.8 million across 85 funding deals in FY20, compared with US$ 561.27 million in FY19. This was led by online video start-ups such as SimSim, Trell and other TikTok alternatives and followed by gaming start-ups including SquareOff, Gamezop and WinZO.
In July 2021, WinZO, a leading gaming and entertainment platform, secured US$ 6 million in a Series C investment round that was headed by Griffin Gaming Partners of California, bringing the company's total capital raised to US$ 90 million.
In July 2021, the Maharashtra Film, Stage and Cultural Development Corporation (MFSCDC), also known as the Dadasaheb Phalke Chitranagari or Film City in Mumbai's Goregaon, issued an invitation for expressions of interest (EoI) to develop infrastructure on its premises.
In July 2021, according to the Indian Express, Jeff Bezos is aiming to broaden Amazon India's entertainment sector by purchasing various film and media distribution companies, including Mumbai-based movie theater chain, Inox Leisure.
As of August 2021, Television would account for 40% of the Indian media market in 2024, followed by print media (13%), digital advertising (12%), cinema (9%), and the OTT and gaming industries (8%).
According to the FICCI-EY report 2021, the media and entertainment business is estimated to grow 25% to reach INR 1.73 trillion (US$ 23.29 billion) in 2021.
By 2030, India’s over-the-top (OTT) entertainment industry will be worth US$ 15 billion.
In June 2021, Netflix announced its plan to open its first live-action, post-production facility in Mumbai. The facility—with 40 offline editing rooms that will be used by showrunners, directors, editors and sound designers—will become fully operational by June 2022.
In June 2021, Fujifilm India and Insight Print Communications (Insight Group) joined forces to innovate and expand top-of-the-class solutions for the graphic arts portfolio.
In May 2021, Kwalee, a UK-based game developer, announced to invest funds worth US$ 30 million, over the next five years, in its operations to expand in the Indian market.
In May 2021, Mediabrands launched Mediabrands Content Studio (MBCS) in India. The company integrated its content division with MBCS India to cater to clients more efficiently.
In May 2021, MBCS signed a production partnership with VICE Media, to strengthen its capabilities and position in India.
In May 2021, Amazon India launched miniTV, a new video streaming service for its users to further strengthen its position in the country.
In May 2021, HOTOTT Entertainment announced its plan to launch ‘HOTOTT’, a streaming service app, by mid-June 2021 to expand in the country.
In May 2021, Zee Digital, the digital unit of Zee Group, announced its new milestones in the digital space, with its leading Marathi news brand, 24Taas.com, crossing 12 million unique monthly visitors.
The Union Budget 2021 provided a strong impetus to the economic growth engines. The Union Budget 2021 allocated funds worth Rs. 4,071.23 crore (US$ 562.80 million) to the Ministry of Information and Broadcasting. The allocation to Prasar Bharati stood at Rs. 2,640.11 crore (US$ 364.96 million). The budget for other autonomous bodies such as the Press Council of India stood at Rs. 20 crore (US$ 2.76 million), Films and Television Institute of India (FTII) at Rs. 58.58 crore (US$ 8.10 million) and Indian Institute of Mass Communication at Rs. 65 crore (US$ 8.99 million). The allocation for broadcasting under social services stood at Rs. 2,921.11 crore (US$ 403.81 million).
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