The landscape of India’s Media & Entertainment (M&E) industry has been transforming rapidly. Riding the wave of exponential progress made towards digital accessibility and adoption, the M&E industry has been a harbinger of a dynamic and aspirational India. Times may be challenging, but they have seldom been more exciting.
So exciting is the proposition of digital entertainment, that industry players now include not only traditional and new-age media companies, but also platforms which were previously focused on other services. While the country’s economic growth has been lukewarm, the M&E industry has grown at nine percent last year. Amidst concerns of a slowdown in consumption, the number of digital consumers tripled last year. Digital media, online gaming, and animation are likely to clock impressive double-digit growth in the near future. Unlike many countries, the TV industry in India is still massive and continues to grow. TV remains the largest revenue generator for the industry. I am optimistic that India will see a billion screens in the next five years.
Tremendous growth notwithstanding, many untapped opportunities remain. New products and business models are being imagined to capitalize on the rise in media consumption. Global players are recognizing the need to build India-centric offerings-with localized products and localized pricing models. The opportunities presented by the emergence of smart television sets and digital connectivity can improve the engagement between creators of content and consumers.
We are on the verge of an exponential increase in engagement through the fomentation of the nascent online gaming industry. The coming years are likely to usher in greater innovation in content formats, means of dissemination, and business models.
Going forward, macroeconomic turbulence and softening advertisement revenue are tangible risks. Industry stakeholders must look for creative ways of monetization and deliver superior value propositions for advertisers. During these times of transformative change, it is imperative that the industry and regulators work closely together to introduce enabling policy and legislative frameworks.
Greater regulatory certainty and a conducive business environment are the need of the hour to ensure that the M&E sector can achieve its full potential.
I would like to thank everyone who worked hard to put together FICCI-EY report (http://www.ficci.in/study-page.asp?spid=23200§orid=13)
(Excerpts from FICCI-EY report ‘The era of consumer A.R.T.’)
The author is Senior Vice President, FICCI.