India’s video streaming industry is all set to grow at a CAGR of 21.82% to reach Rs. 11,977 crore by 2023. According to a report by global accounting firm PricewaterhouseCoopers (PwC), the over-the-top (OTT) video industry will record the highest growth rate among all segments and drive evolution over the next four years in the overall media and entertainment industry in the country that will rise by 11.28% to reach Rs. 4,51,405 crore.
The M&E sector was valued at Rs. 2,64,588 crore in 2018.
“India is the fastest growing entertainment and media market globally and is expected to keep that momentum. Our research shows that in the next five years India will see significant growth in over-the-top (OTT), online gaming and Internet advertising. Growth in these sub-sectors spurs from the growing trends around personalization and increased digitalization,” said Rajib Basu, partner and leader – entertainment and media, PwC India.
Today’s consumer can control their own media consumption through an expanding range of smart devices and curate their personal selection of channels using OTT services. The soon to arrive 5G networks will create further use cases, enhance user experiences and create disruptions leading to newer business opportunities, Basu added.
The report titled Global Entertainment & Media Outlook 2019-2023 (Outlook) outlines rates of growth for different media and entertainment segments and sub-segments both globally, as well as territory-wise. It adds that there are a few priorities shaping outreach strategies at the moment. For instance, companies are finding that it makes sense to present different options: all-you-can-eat offerings with unlimited usage in some areas, tiers of payments for different services in less developed markets, and competing on affordability.
Content creators and distributors are devising new ways to appeal to consumers as individuals and marketers are figuring out how to meet consumers at the point of consumption and point them instantaneously towards purchase. Companies are leveraging the ability of artificial intelligence to understand people’s individual tastes and consumption habits to offer up the content individual users find most compelling.
With consumers moving to the centre of their own world of media experiences, their personal data — from the music they stream and the news they read to the products they buy — is taking a central role.
Largest chunks of the total industry revenue in India by 2023, the report says, will come from traditional TV and home video that will record growth rate of 11.83% to reach Rs. 1,23,047 crore and Internet access that will rise by 16.02% to reach Rs. 1,16,843 crore over the same period.
Apart from OTT, the other fast growing segments will be video games and esports and Internet advertising that will notch up rates of 18.89% and 17.75% to touch Rs. 17,891 crore and Rs. 18,446 crore respectively.
Cinema, on the other hand, will grow by 8.51 % to get to Rs. 17,789 crore. Box office collections notched up by films in the country will rise by 8.54% to reach Rs. 17,292 crore while cinema advertising will grow by 7.37% to reach Rs. 497 crore. The emergence of digital streaming services has posed new challenges to the enduring appeal of big-screen movie experiences. Films, especially those in the Hindi language, have found it hard to drive audiences to theatres, as the failure of recent big-ticket productions like Thugs of Hindostan and Kalank shows. But industry experts believe big-budget spectacles along with strong content-driven narratives will pull people to cinema halls in the coming months.