As per the latest reports revealed at FICCI-IIFA global business forum in New York, the Indian media & entertainment industry is all set to touch $34.8 billion by the year 2021. This figure is up from the $20 billion for the year 2016. The number is presently growing at a compound growth rate of around 11.8 percent on an annual basis between the years 2016 and 2021.
Last year, the aggregate advertising expenditure across all sectors in India was estimated at $8.18 billion. At present, this figure is evaluated to hit $16.7 billion by the year 2020. Also, the subscription revenue is estimated to rise to $15 billion by 2020.
While print media and television together accounted for 76.2% of the total advertising revenue in 2016, mobile advertising emerged as the third largest advertising medium in India after TV and print.
As per a statement made by the partner of advisory, media, and entertainment (EY), the Indian M&E sector is presently at a digital intersection. Each sector of this industry, including OTT, print, radio, TV, film, and experiential marketing is getting influenced by digitization. This is displaying immense innovation, growth, and consolidation. The scenario presents an exceptional growth opportunity for companies aspiring to establish and expand their presence across India. This will help them make the most of the growth of India digital field.
As per the latest entertainment news in Hindi and English, the progress for digital advertising is predicted to be the fastest (26per cent CAGR) between the years 2016 and 2021. On the other hand, advertising on television is anticipated to progress at the rate of 11 percent CAGR.
Latest Development and Investments in the Field of Entertainment
– PVR Cinemas is all set to add over 75 screens all around the country during FY 2017-18. This decision will raise the capacity of PVR to around 650 screens. It has also set a target to achieve more than one thousand screens all over the country by the year 2020.
– Amazon has recently launched the impressive Prime Video service in India. This has been launched at a competitive annual subscription price of just INR 499 (US$ 7.48). They are also offering one-month free trial plan wherein one can watch a wide range of Hollywood and international movies, nine Indian original shows, and international TV series.
– Hotstar, the latest digital streaming platform owned by Star India Ltd has also collaborated with Zapr Media Labs, a media tech company in Bengaluru. The collaboration will perform an assessment on the mobile audience, which can be leveraged through brands for creating personalized communication.
– The owner of Bookmyshow, Bigtree Entertainment Pvt. Ltd has acquired around 75 percent stake in Townscript. This is an event registration and ticketing platform online based in Pune.
– Around 14% stake in PVR Ltd is purchased by APE major Warburg Pincus for INR 820 crore which amounts to US$ 123 million.
– The popular online video streaming platform, Dekkho, has recently raised US$ 1.2 million in a seed round. This is collected from 7 angel investors. The fund will be utilized for upgrading its technology infrastructure. The company will also make an investment in content licensing.
– Carnival Cinemas has recently collaborated with the Odisha government to construct thirty entertainment centers (recreation zones). The company is the third largest cinema multiplex chain in the country. The project will be spread over 1-1.5 acres of land in either tier-II or tier-III locations.
Government initiatives such as cable digitization (established on 31 March 2017) and current tariff alterations presented by the Telecom Regulatory Authority of India (Trai) will further improve growth in traditional media, especially in the field of television.
The Media and Entertainment industry of India is on a remarkable growth path. It is predicted that the industry will grow at a faster rate – faster than the global average rate.