India’s media and entertainment sector will surpass $33 billion by 2021

India’s media and entertainment sector revenue reached $23.9 billion in 2018 and is expected to surpass $33.6 billion by 2021, at a compound annual growth rate (CAGR) of 11.6%, according to a study published here on Tuesday. The report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and Ernst & Young LLP was launched here at the inaugural session of the 2019 Ficci Frames. While television maintained its position as the largest segment, growth is expected to come from digital, which is expected to overtake filmed entertainment in 2019 and print by 2021.

In 2018, the media and entertainment sector recorded a growth of 13.4% compared to 2017.

According to the report, India has the second highest number of internet users after China with 570 million internet subscribers growing at 13% annually. It is estimated that around 2.5 million consumers in India today are digital only and would not normally use traditional media. This customer base is expected to reach 5 million by 2021.

Ashish Pherwani, Partner and Head of Media and Entertainment, EY India, said in a statement: “The media and entertainment sector offers a significant opportunity given India’s young demographics. digital also allows Indians to meet the need for content consumption, across languages ​​and genres.

“There is a big shift in consumer behavior from mass-produced content to specific content defined for audience segments. The industry has the potential to serve a billion screens in India and the world.”

Uday Shankar, Vice President of Ficci and President of Ficci Media and Entertainment Division, said: “The industry is about to launch a new era of growth. Technological upheavals are creating new opportunities for the sector. customer (D2C) capabilities are on an upward trajectory, making India’s media and industry market increasingly dynamic, against the backdrop of already popular television and movie broadcasting.

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“Incumbents in the industry must innovate, transform and increase their relevance to mass and individual consumers.”

According to the report, the TV industry grew from Rs 660 billion to Rs 740 billion in 2018, registering a growth of 12%. The number of TV-watching households rose to 197 million, a 7.5% increase from 2016. And 77% of time spent on TV was on general entertainment content and movie channels.

Print accounted for the second largest share of India’s media and entertainment sector, despite its stability and growth of 0.7% to reach 305.5 billion rupees in 2018, according to the report.

The cinema segment grew by 12.2% in 2018 to Rs 174.5 billion, driven by growth in digital/OTT rights and overseas theaters.

All sub-segments except Home Video grew in 2018. Domestic film revenue topped Rs 100 billion with net box office receipts for Hindi films at Rs 32.5 billion, the highest ever for Hindi cinemas. Overseas cinemas grew to 30 billion rupees from 25 billion rupees in 2017, where China emerged as the biggest international market for Indian content.

Digital rights have redefined content consumption processes as the segment grew from Rs 8.5 billion to Rs 13.5 billion. Online platforms have invested heavily in exclusive film rights and a digital-only film market has emerged.

Multiplexes boosted the number of screens to 9,601, although single screens continued to decline.

As for digital media, it grew by 42% to reach 169 billion rupees thanks to new and revived video streaming platforms, smartphone growth, affordable broadband delivery, regional language content, exclusive content and live broadcast of major cricket and other impacts. Properties.