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(Based on FICCI Report on Media & Entertainment – Mar 2018 Edition)
A FICCI-EY report on the Indian media and entertainment (M&E) sector. The Indian economy is growing and the M&E sector is a reflection of this. The year 2017 saw India recover from demonetisation only to face the new challenges and opportunities provided by the implementation of GST. However, the Indian economy continued on its growth trajectory and so did the M&E sector. Favourable demographics, a rise in consumer income and a huge demand for knowledge, escapism, sports and news aided the growth of the M&E sector in the country. The reach of television increased to 64% of India, and with distribution now largely digitized, this has brought in more addressability. Bucking international trends, the print and radio segments continued to grow, as well as build their digital presence. Indian films – both Hindi and regional – grew their international appeal with several doing well at the global box office. Increase in the demand for global content has resulted in growth of the animation, VFX and post production segment, where India has become known for its high quality and efficient capabilities. Digital subscription and online gaming are showing signs of exponential growth – albeit from a small base – on the back of rising per-capital GDP and falling data costs. The Indian M&E sector now finds itself at its digital tipping point. India is now the second largest smart phone market in the world, and more than half the country is expected to have access to affordable broadband by 2020 which could result in over 500 million online video consumers. Rural and women audiences are expected to grow fastest, which will change the type and genre of content being consumed. The digital micro-payments ecosystem is also growing rapidly across both urban and rural markets. These changes will grow digital content consumption significantly, and this presents M&E companies, both foreign and domestic, with an exciting opportunity to develop businesses and cater to the new generation of Indian digital consumers.
