Continued boom forecast for India’s media and entertainment sector

The country’s media and entertainment sector, currently valued at nearly $18 billion, could grow to $100 billion in the near future, according to a recent report by the Boston Consulting Group and the Confederation of Indian Industry.

The sector has been growing by around 10% per year for the past five years. India has the third largest television audience in the world and the second largest print circulation. And, produced the most films in the world. It employs nearly five million, directly and indirectly. At 1.7% of the country’s gross domestic product (GDP), it retains vast capacity to absorb new products and businesses, unlike the developed world where many of its segments are struggling.

The sector is still underperforming, the report says. Advertising, for example, accounts for 0.3% of GDP; the global average is 0.6%. And, falls far behind China’s next largest market, which has reached a “billion hours of media per day”.

The report urges companies to take advantage of new consumer and digital trends, highlighting changing patterns of consumption, advertising and exploitation.

The important thing, he says, is to shift media distribution channels from conventional TV and movie theaters to the estimated 250 million digital screens (smartphones, tablets, laptops and personal computers) brought about by the media revolution. telecommunications. This number is expected to reach 600 million by 2020 – one in two Indians will potentially have a personal media consumption device.

The printing industry, according to the report, can reach Rs 39,500 crore by 2020, but only if it can scale up digital operations unless an annual contraction of 5% is expected. Broadcast information, on the other hand, dominates both access and audience. It has grown by more than 10% in five years, currently at Rs 60,000 crore. Subscription revenue grew 10% annually; advertising revenue increased by nine percent.

Currently, Indians spend nearly 21 hours a week watching live TV, significantly less than the global average. Among the segments, movies stand out, with relatively better prospects. Currently valued at Rs 13,000 crore and growing at 13% per annum over the past five years. This is expected to hold, leading to 24,000 crores in 2020.

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