As per the latest report by the EY, India’s Media and entertainment Industry is expected to reach Rs. 2.34 trillion (US$ 29.2 billion), then grow at a CAGR of 10% to reach Rs. 2.83 trillion (US$ 35.4 billion) by 2025. Advertising revenue in India is projected to reach Rs. 394 billion (US$ 5.42 billion) by 2024. The share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 58% of the media and entertainment sector revenues in 2022.
Indian digital industry is expected to grow at 29% to reach a market size of Rs. 35,809 crore (US$ 4.35 billion) by the end of 2023. It is expected to contribute 38% to the overall advertising industry in India, on par with television.
The OTT segment is likely to grow at a remarkable CAGR of 14.1% to reach Rs. 21,032 crore (US$ 2.55 billion) in 2026. Subscription services, which accounted for 90.5% of revenue in 2021, are projected to account for 95% of revenue by 2026.
Within the M&E sector, Animation, Visual Effects, Gaming and Comic (AVGC) sector is growing at a rate of ~29%, while the audio-visual sector and services is rising at the rate ~25%; is recognised as of one of the champion sectors by the Government of India. The AVGC sector is estimated to grow at ~9% to reach ~Rs. 3 lakh crore (US$ 43.93 billion) by 2024, stated Union Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Mr. Piyush Goyal.
PE/VC led 77% of the media and entertainment deals in 2022, contributing to 57% of the total funding, while 23% of total deals were led by strategic players in 2022.
In 2022 (January-July 2022), PE/VC investments In the media and entertainment industry was at US$ 3,389 million. FDI inflows in the information and broadcasting sector (including print media) stood at US$ 10.04 billion between April 2000-December 2022.
The Indian OTT audience universe currently stands at 424 million people, according to The Ormax OTT Audience Sizing Report 2022. Of these, 119 million are active paid OTT subscriptions in India.
India’s SVOD subscriptions reached 130.2 million in 2022 compared to 110.5 million in 2021.
As per GroupM’s TYNY report 2023, India was ranked 8th by global ad spend, and will continue as the fastestgrowing market among the top 10 ad markets in 2023.
Advertising revenue in India is projected to reach Rs. 394 billion (US$ 5.42 billion) by 2024. India’s subscription revenue is projected to grow at a CAGR of 2% and reach Rs. 432 billion (US$ 4.94 billion).
Key growth drivers included rising demand for content among users and affordable subscription packages.
The Indian mobile gaming market is growing at a pace in tandem with the global trend and is expected to reach US$ 7 billion in 2025. The online gaming market in India is projected to reach US$ 2.81 billion by 2025, from Rs. 76 billion (US$ 1.08 billion) in 2020, due to rapid increase in consumption.
The music industry is expected to reach US$ 400 million by 2025 from US$ 199 million in 2019. According to a study conducted by Kantar and VTION, an audience measurement and analytics company, Gaana, the streaming service owned by Times Internet Ltd., had 30% market share, followed by JioSaavn (24%), Wynk Music (15%), Spotify (15%), Google Play Music (10%), and others (6%) in 2020.
About 1 million music streams were played every 3 minutes in FY23, totalling 460 million streams per day, according to a report by Redseer Strategy Consultants. Spotify led India’s music and audio streaming market in FY23 with a 26% share, as compared to just 11% share in FY20.
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. In the third quarter of 2022, smart TV shipments from India increased by 38% YoY, due to rising expansion activities adopted by original equipment manufacturers (OEMs) for their smart TV portfolios. By 2025, ~600-650 million Indians, will consume short-form videos, with active users spending up to 55 to 60 minutes per day.
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 2022, India registered ~527 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.