MUMBAI: According to a new joint study by Assocham-PwC, the media and entertainment (M&E) industry in India is likely to be worth USD $52,683 million (Rs 3745.2 billion) by 2022 courtesy a yearly rise in disposable income, population and content consumption across formats.
The study claims that traditional media such as TV and cinema will be complemented by new-age digital platforms such as over-the-top (OTT) services. That market in India is estimated to be ranked amongst the top 10 in the world by 2022 with its size growing to USD $823 million (Rs 53.63 billion).
“The entertainment and media industry is projected to grow at a CAGR of 11.7 percent from $30,364 million (Rs 2158.7 billion) in 2017 to $52,683 million (Rs. 3745.2 billion) in 2022,” the report said.
“TV, cinema and OTT will collectively account for 46 percent of the overall growth in the Indian entertainment and media industry for the period 2017 to 2022.
“Globally, the OTT market is set to grow at a CAGR of 10.1 percent during the period 2017–2022. During the same period in India, the segment is expected to grow from $297 million (Rs 19.32 billion) to $823 million (Rs 53.63 billion) in 2022 at a CAGR of 22.6 percent,” it added.
Across OTT platforms, subscription video on demand (SVoD) will hold a majority share of content and subsequently, market share. Due to its launch and popularity, VoDs have resulted in production budgets of companies such as Netflix and Amazon rivalling those of traditional studios according to PwC India Partner and Leader (Entertainment and Media Sector) Frank D’Souza.
“Mobile video advertising (largely AVoD) is the fastest growing sub-segment of India’s Internet advertising market, projected to rise at a CAGR of 32.8 percent from 2017 to 2022 and to reach $317 million (Rs 20.64 billion) by 2022,” the study further stated.
With telecom operators such as Jio disrupting the Indian market in the last three years, data consumption will grow from 71,67,103 million MB in 2017 to 10,96,58,793 million MB in 2022.
“With lower-than-ever data tariffs and increasing smartphone penetration in the country, which is around 40 percent as of 2017, it is safe to assume that the VoD market will be a significant beneficiary of these developments,” it said.
However, it cautioned that the country’s per-capita M&E spend will be capped at a meagre $32 (Rs 2275) by 2021.
“The spend is much lower than that of China, which will stand at $222 (Rs 15783) for the same period, and that of the USA, which will have the highest spend at $2,260 (Rs 160675) ,” the report concluded.
