Global professional services firm EY has released its latest analysis of India’s media and entertainment sector, and the report not only predicts continued expansion of the sector in terms of consumption, but also observes changes in the nature of content consumed in the world. country.
Economic prosperity, combined with a substantial drop in the price of data connectivity since Reliance Jio was officially made public in 2016, has led to a scenario in which the majority of India’s billion-plus population currently has access to the Internet and therefore consumes content on a daily basis.
The potential for such a scenario is enormous, as industries that depend on digital data now have a huge and relatively untapped market to compete in, while almost any other industry can take advantage of this substantial online space to expand. the scope and reach of their products and services. .
Some industries that directly depend on the online space include the technology, media and telecommunications (TMT) segment, as well as the media and entertainment (M&E) industry. Predictions have been made everywhere about the future of these sectors in India, and the numbers are monumental.
While Big Four accounting and consulting firm Deloitte provides an annual analysis of progress in the TMT sector, Big Four rival EY monitors developments in the M&E sector. In 2017, the company reported that the M&E sector would reach a value of nearly $35 billion by 2021.
The company has now released its latest analysis of M&E in India, which reveals that the sector grew by a staggering 13.4% during 2018, bringing its current value to nearly $24 billion. However, the rate caused EY to revise its forecast for 2021, putting the value at just under $34 billion.
Through 2021, the industry is expected to grow at a compound annual growth rate of 12%. EY is zooming in to identify the segments that appear to be driving this growth, and the world of online gaming appears to be growing at an all-time high, growing almost 60% last year alone.
Perhaps due to the expansion of internet access, the number of online gamers in India currently stands at almost 280 million, having grown by more than 50% in the last year. This growth includes casual gaming activity as well as activity on gambling platforms such as fantasy and esports.
Another segment heavily dependent on the digital landscape is digital media, which grew nearly 42% last year thanks to digital advertising. Reports put the estimated value of digital advertising spending in India at $295 billion in 2021.
Another area that has contributed to the growth of the M&M industry is subscriptions. EY reports that consumers and India are showing a growing propensity to pay monthly installments for their online content, which has also contributed to the rapid expansion of the Indian OTT market.
The television sector, meanwhile, remained the largest segment and saw steady growth of just over 12% last year. Television has achieved a high degree of penetration in the country, as nearly 70% of Indian households currently own television sets, although a number of these users consume content in regional languages.