But in 2019, the growth is expected to come from digital which will overtake the film entertainment sector.
The Indian Media and Entertainment (M&E) sector is expected to cross ₹2.35 trillion ($33.6 billion) by 2021, growing at an annual rate of 11.6%, says a report by EY-Ficci. The sector grew at 13.4 per cent, which is more than the nominal GDP of 10 per cent, to reach Rs 1.67 trillion ($23.9 billion) in 2018 as against 2017, the report said.
The EY-FICCI titled ‘A billion screens of opportunity’ said that television retained its position as the largest segment, but in 2019, the growth is expected to come from digital overtaking the film entertainment sector.
Media reports quoted Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, as saying, “The growth of digital infrastructure is further enabling Indians to fulfil the need for personal content consumption, across languages and genre. There is a large shift in consumer behaviour from mass produced content to specific content defined to audience segments. The sector has an opportunity to serve a billion screens in India and globally.”
The EY-Ficci report was released at the 20th edition of FICCI Frames.
The sector continues to grow at a rate faster than the GDP and this reflects the fact that disposable incomes are increasing, the report said.
Notably, India boasts of the second highest number of internet users after China with over 570 million internet subscribers growing at 13% annually.
Approximately 2.5 million consumers in India are only digital and do not use the traditional media and the customer base is expected to grow to 5 million by 2021, the report said. The report added that in 2018, traditional media companies were building their customer data through second-screen interactive propositions, polls, house-to-house surveys, and integration of third-party data.
It forecasts that digital consumption will grow, and there will be greater innovation in monetization avenues to cater to the new Indian customer segments.
Further, the report said that telco bundling will drive consumption for a majority of Indian OTT audience.
Also, advertising growth outpaced subscription growth and is expected to comprise 52% of the total pie by 2021, as per the report.
Media reports quoted Uday Shankar, Vice President, FICCI and Chair, FICCI Media and Entertainment Division, “The sector’s incumbents need to innovate, transform and increase their relevance to mass and individual consumers.”
Source: https://www.thehindubusinessline.com/media reports