New Delhi: India’s media and entertainment industry is valued at US$27-29 billion in 2022 and projected to grow to US$55-65 billion by 2030, according to a report. The industry, which had experienced some setbacks during the pandemic, is returning to its pre-Covid growth story, according to a joint report by industry association CII and BCG.
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“As the industry experiences strong growth spurts, it is poised to grow to $55-65 billion by 2030, with a potential of $65-70 billion driven by growth in OTT and gaming,” states in the report entitled “Shaping the future of Indian M&E”.
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Highlighting the role of some media segments, particularly OTT platforms, the report said the sector has seen rapid changes driven by “accelerating technological advances and changing consumer behavior”.
According to the report, the digital video and gaming segment is leading the “boom” with over 40 percent of total media consumption in 2022, helped by growth in internet and smartphone penetration. Now, digital consumption growth is outpacing “all other segments,” he added.
The overall growth of India’s media and entertainment industry between 2020 and 2022 is expected to be around US$6 billion and “two-thirds of the growth” would be “digitally driven,” she added. Video-on-demand (SVOD) subscriptions are estimated to grow by 85-90 million in 2022, representing “a 16- to 17-fold increase over the past 5 years,” the report said.
Additionally, there is now an “increasing willingness” to pay for premium/exclusive content, she added. The report estimates that SVOD will account for 55-60 percent of total OTT sales in India by 2030, driving AVOD (Advertising-based Video On Demand) platforms. Some of these emerging trends are likely to have long-term implications for the industry.
“The OTT sphere has exploded with strong subscription growth and increased investment in content. Gaming continues to show promising growth due to increasing interest in interactivity,” it said.
According to the report, it will be crucial for companies in the industry to understand the imperatives that will help them capitalize on these opportunities and realize their true potential. The report mentions Metaverse, which stands at the confluence of several disruptive technologies.
“With increased adoption, expanded use cases, and improved connectivity and interoperability, it will be interesting to see the broader adoption of Metaverse technologies beyond the gaming industry,” it added. Although it’s still in its early stages, media companies and content creators are already pushing to offer viewers more interactive and immersive experiences, it said. “M&E companies need to keep up with these trends to solidify their position and become more important in consumers’ lives through interactivity,” it said.