Indian M&E sector to grow at 11.7 per cent, says report
New Delhi:The Indian media and entertainment (M&E) industry is projected to grow at a CAGR of 11.7 per cent from $30,364 million in 2017 to $52,683 million in 2022 due to rising population, increasing disposable incomes and new technologies, according to a study.
Television, cinema and OTT will collectively account for 46 per cent of the overall growth in the Indian M&E sector for the period from 2017 to 2022, said a ASSOCHAM-PwC joint study on ‘Video on Demand: Entertainment reimagined’.
The study said that the video on demand (VoD) market has evolved across the world, including in India over the last decade.
It said that regional and quality content, delivered with a focus on unique and customised ‘user experience’ through the use of technology, is set to become the mainstay of success for any VoD service provider.
The study also pointed out that the traditional and conventional media industry players on one hand and OTT players on the other will coexist in India and achieve impressive growth in the coming years. “We are now seeing the third wave of convergence in the entertainment and media industry. The five fundamental drivers of this convergent business model are uninterrupted connectivity, mobile devices becoming the primary source of content consumption, the need to move away from traditional revenue streams, value shifting from content creators to platforms, and ability to provide a personalised offering to the consumer,” said PwC India’s Frank D’Souza.
The study said that the stand-alone subscription video on demand and Transactional video on demand will collectively grow from $296.69 million (Rs 19,328 million) in 2017 to $823.25 million (Rs 53,630 million) in 2022 at a CAGR of 22.6 per cent. “Globally, the OTT market is set to grow at a CAGR of 10.1 per cent during the period 2017-2022. During the same period in India, the segment is expected to grow from $297 million (Rs 19,328 million) to $23 million (Rs 53,630 million) in 2022 at a CAGR of 22.6 per cent. Mobile video advertising is the fastest growing sub-segment of India’s Internet advertising market, projected to rise at a CAGR of 32.8 per cent from 2017 to 2022 and to reach $317 million (Rs 20,641 million) by 2022,” it said.
“Data consumption in India will grow from 71,67,103 million MB in 2017 to 10,96,58,793 million MB in 2022. With lower than ever data tariffs and increasing smartphone penetration in the country, which is around 40 per cent as of 2017, it is safe to assume that the VoD market will be a significant beneficiary of these developments,” said the study.
It said that as more and more people opt for smartphones, it is evident that data consumption will be on the rise, which will eventually lead to an increasing number of hours spent on mobile devices for viewing content online.