As per a recent research by CII and The Boston Consulting Group, Indian entertainment and media industry is witnessing an aggressive growth rate, which is in continuation with the last 5 years average. In fact, by the time 2016 ends, total revenue generated in this sector will cross Rs 1.3 lakh crore, which is an impressive growth of 10-12% year on year.
In 2013, the sector grew 12%; whereas last year, we had reported that revenues churned out by the sector has crossed Rs 1 lakh crore with a growth rate of 13.9% (KPMG report)
The recent research, titled ‘Convergence: the new multiplier for Indian media and entertainment’s $100 billion vision’ states that the industry is right now valued at Rs 69,000 crore, and the compound annual growth rate (CAGR) is 11%.
Print Medium Witnessing Healthy Growth Rate in India
In the Western world, print medium is on a steady decline as US witnessed massive 30% drop in revenues since 2005. The same is being witnessed in Europe as well.
However, in India, print medium is growing at a healthy rate, despite onslaught on digital content and TV related content.
As per the report, print medium in India has been consistently growing at a rate of 6% between 2010-2016, and has reached a market value of Rs 29,000 crore this year.
Around two-third of revenues generated by print medium is from advertisements, and this proportion is increasing on a monthly basis. Revenue from subscription is also on a rise.
Digital Medium Surpasses All Record
The report mentions that content produced for the digital medium has increased by 500% between 2010 and 2016, and this signifies a massive shift in consumer behavior for the entertainment and media sector.
In fact, Digital is not only engaging Internet users, but also triggering more consumption of content. As per the report, per-capita media consumption of Internet users is 40% higher than non-Internet users. This means that a typical Internet user consumes more content than users from other medium. Besides, this fact also means that advertisement in digital medium is at an all time high.
We have already reported that big digital platforms like Facebook, Twitter and Amazon are right now bidding hard for getting IPL rights for digital broadcasting; and more than Rs 500 crore can be spent by them to grab the rights. In 2015, Novi Digital Media spent Rs 300 crore to win the rights of digital and mobile.
Amazon has already committed an investment of Rs 2000 crore for creating exclusive content which can be only accessed on their own platform, and partnerships with major production houses are already on.
Netflix, the global biggie in on-demand entertainment niche has already arrived in India, which has triggered launches of similar services from local players.
The report suggests newer models of content creation for the digital medium and gives emphasis on the content curation model for the new age digital user.
It would be interesting to observe how Indian media and entertainment sector evolves to accommodate print, digital and TV mediums and how audience will respond to the newer models of content consumption in India.