Media and Entertainment

India is the second-largest television market with an opportunity to cater to 100 million homes
India is one of the largest broadcasting markets with a total of 243 FM channels being operational
Animation and VFX industry in India grew from 73.9 billion in FY18 to 87.7 billion in FY19
The total subscriber base for the Indian television industry increased to 195 million in 2019 from 183 million in 2017
The Indian film industry is expected to grow at a rate of 11.9% by 2020 due to digitalization
Between 30-35 million OTT subscribers are expected by 2021

Competitive Advantage for India

Rising income and evolving lifestyles have led to higher demand for aspirational products and services
Higher penetration and a rapidly growing young population
Increased usage of 3G, 4G, and portable devices would augment demand

Government Policies

The Government has increased the FDI limit from 74% to 100%
Increasing liberalization and tariff relaxation
Measures such as digitization of cable distribution to improve profitability and ease of institutional finance
FDI limit in radio including private FM channels have been increased from 26% to 49%
The Government introduced National Digital Communications Policy 2018 for affordable digital communications infrastructure and services

Investments

From April 2000 to December 2019, FDI inflows in information and broadcasting sector reached $8.71 billion
In 2019, the sector witnessed a total of 21 mergers and acquisition (M&A) worth $240 million

Market Overview

The Entertainment Industry is split into 10 segments: Television, Radio, Print, Films, Live events, Digital media, Music, Out of Home, Animation and VFX and Online Gaming
Media and Entertainment Industry is set to expand at a CAGR of 13.5% during 2019-24
The Indian media and entertainment industry is expected to reach around INR 3.07 lakh crore by 2024
Digital M&E platforms in India grew 13.3% in FY19 to reach Rs 163,100 crore contributing the most to M&E’s growth
India's online gaming industry is expected to grow at a CAGR of 22% during FY18-FY23 to reach INR 11,900 crore in FY23
It is expected that sports can create 4.3 million jobs by 2022
The Indian digital segment is expected to witness a growth of 29.1% CAGR during FY19-FY24

Television segment

In 2019, television market size increased to INR 815 billion from INR 660 billion in 2017 and is estimated to surpass $13 billion by 2023
The share of broadcaster subscription revenue was 25% of the total collection, estimated around INR 11,000 crore in 2019

Other segments

During 2018-23, segments are expected to increase at CAGRs of 30.20% for Digital Advertising, 15.50% for Animation and VFX, 22.10% for Gaming, 9.20% for OOH and 10.20% for Radio
India's advertisement market is projected to grow 10.62% y-oy to INR 85,250 crore till 2021
Digital advertising generated revenues worth INR 15,467 crore in 2019
Music entertainment market size is expected to touch INR 35 billion by FY24 from INR 17 billion in FY19

OTT

The online video market in India is estimated to reach $4 billion by 2025, with subscription services contributing more than $1.5 billion and advertising accounting for $2.5 billion
India is projected to become one of the top 10 global OTT markets to reach US$ 823 million by 2022

Strategies Updated

Regional entertainment is growing and therefore, the suppliers are able to expand their forte in the products
The manufacturing companies such as Videocon is offering combo deals
TV programs being used as a medium of promoting films or other entertainment events

Growth Drivers

Rising income: India’s per capita income at current prices grew 11% to reach INR 141,447 in FY19AE
Evolving lifestyles: During 2017-2025, elite, affluent, aspirers and next billion income classes are expected to grow at a CAGR of 11%, 9%, 5%, and 2% respectively
Higher penetration and a rapidly growing young population coupled with increased usage of 3G, 4G, and portable devices would augment demand

New Opportunities

Growth in international animation films, especially 3D productions, and the subsequent work for Indian production houses will help the growth of this segment
Accelerated growth is forecast in regional print and local news segments growing at a CAGR of 5.9% during 2018-2023
In order to promote India as a location destination for foreign production houses, the Government is setting up a single-window clearance system for shooting permissions

Key Industry Organizations

1. Television

2. Over the Top (OTT)

3. Print

4. Films

5. Music

Sources