Media & Entertainment industry sunrise sector of Indian economy

‘Media & Entertainment should hit $100 bn by 2030’


     India’s media and entertainment (M&E) industry is currently worth $23 billion and should grow to $100 billion by 2030, Ministry of Information and Broadcasting (MIB) secretary Apurva Chandra said on Tuesday.

Talking at the inaugural session of a two-day media convention, FICCI Frames Fast Track 2022, Chandra said the government is fully committed to supporting the sector.
“Currently, the sector is less than 1% of India’s GDP, and while India will be a $10 trillion economy in next 10 years, we should target that the M&E sector should grow to more than $100 billion by 2030,” he said. “The MIB will do whatever it takes to support the M&E sector and help it grow.”

By Pradeep Kumar

The Indian Media and Entertainment industry (M&Ei), a sunrise sector for the economy, is making significant strides. Proving its resilience to the world, the M&Ei is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenue.

According to a FICCI-EY report, the advertising to GDP ratio is expected to reach 0.4% by 2025 from 0.38% in 2019 while as per BCG report, the M&Ei is expected to grow between US$ 55-70 billion by 2030. India’s digital advertising industry is expected to grow to Rs. 23,673 crore in 2022 from Rs. 18,938 crore in 2021.

Television would account for 40% of Indian media market in 2024, followed by print media (13%), digital advertising (12%), cinema (9%), and the OTT and gaming industries (8%). The market is projected to increase at a CAGR of 17% between 2020 and 2023.

Within the M&Ei 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 Govt of India. The AVGC sector is estimated to grow at ~9% to reach ~Rs. 3 lakh crore by 2024, Union Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles Piyush Goyal has said.

According to BCG, India’s SVOD subscriptions is expected to increase by 51% as compared to 2019 and is estimated to reach 90-100 million by 2022.

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. By 2025, the number of connected smart TVs 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 2nd quarter of 2021, smart TV shipments from India increased by 65% 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 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.

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.

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 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. 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.

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). (With Wikipedia inputs)


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