The growth will be driven by OTT, gaming, animation, and VFX
Overcoming the negative impacts of Covid19, the Indian media and entertainment industry has revived to pre-covid levels. The sector is expected to grow at a nine to eleven percent compound annual growth rate (CAGR) to reach $55-70 billion by 2030, according to a report released by The Confederation of Indian Industry (CII)-The Boston Consulting Group (BCG). The growth will be driven by over-the-top (OTT) platforms, gaming, animation, and VFX. “It is delightful to
see that the hard work put in by all stakeholders in the face of great challenges, both professional and personal has paid off and now our industry is back on track,” K Madhavan, chairman, CII National Committee on media and entertainment and president, The Walt Disney Company India and Star India, said.
“Our industry has always been at the forefront of disruption and we will continue to innovate over the next decade. We will now need new answers and will need them fast, even on the most fundamental things like talent pool to run our companies and methodology for measuring the impact we are delivering to advertisers on our platforms. We will need to continue to embrace change going forward to create the most value for consumers as well as our partners,” Madhavan added further.
As per the report, pay TV is growing marginally in India, while subscription-based video-on-demand is seeing a rapid rise. Moreover, advertising is showing a v-shaped recovery and digital-led recovery is expected to get the market back to $10 billion in 2022. Advertising in India has the potential for multi-fold growth over the next few years as Indian ad spends as a percentage of GDP is among the lowest in the world, the report noted.
While TV ad volumes have bounced back to pre-Covid levels, future growth will be driven by increased advertising on regional channels and the entry of new advertisers. As per the report, AVOD is now one of the fastest-growing ad segments in India driven by interactive ad formats, blending of content and ads and the rise of short form AVOD platforms.
With high investment in premium and original content, the Indian OTT sector is one of the most competitive amongst emerging markets. ‘Cord cutting’, the industry term for cancelling TV subscription and moving to OTT, is still in nascent stages and is expected to be limited in the medium term, the report added.
“The share of traditional media is slowly declining with increased digital adoption but there is still high headroom for penetration with only 54% of Indian households having a pay TV connection compared to more than 70% in China. For many households, TV continues to be the center of the home and a significant part of family time,” Mandeep Kohli, managing director and partner, Boston Consulting Group India, explained.
According to Biren Ghose, vice chairman, CII National Committee, media and entertainment and country head, Technicolor India, this year’s CII – BCG Big Picture report appropriately features the games sector in India captioned the “Future is play”. Despite sporadic regulatory hiccups, in some states, this segment is growing at around 30% per annum which is the highest among the animation and visual effects (AVGC) Sector, Ghose added.
https://www.financialexpress.com/brandwagon/indian-media-and-entertainment-industry-expected-to-reach-55-70-billion-by-2030-report/2394345/
