Remember the time when the only alternatives for entertainment accessible to the typical Indian were the nearby single-screen theatre, or the occasional play or music event held at community centres? The majority of the current generation probably won’t. The arrival of posh multiplexes and malls throughout the new century, which also heralded the promise of globalization, radically altered the entertainment options for many Indians. An entire generation of young Indians grew up with western music, film, and pop culture thanks to satellite TV and the internet, and several new-age youth celebrities emerged as a result of MTV and Channel V.
The media and entertainment sector has enormous capacity to impact, mould, and reshape society. Currently, the industry is going through a significant shift. The previous few years have been a rollercoaster because of a number of challenges, including content production challenges, theatre closures, and reduced advertising expenditure due to the pandemic. However, a cycle of a powerful rebirth came after these circumstances.
Through the ways it has regained its appeal and operated better than before the pandemic, this industry has demonstrated its adaptability and propensity to meet and overcome adversities. The main goal of this sector is to provide relevant and high-quality information while adapting to the changing environment. The media and entertainment industries are at risk of becoming irrelevant because of disruptive technologies that are currently at their height and are affecting consumer behaviour and technology. Journalism, advertising, digital marketing, and public relations are just a few of the professions that have grown in prominence because of the success of YouTube videos, podcasts, Over-the-Top (OTT) media services, and digital broadcasting.
Some statistics on the media and entertainment sector—
(Source: IBEF, March 2023)
India’s media and entertainment market is predicted to reach US$ 30.9 billion by 2024.
More than 40 million smart linked TVs are expected to exist by 2025, up from 10 million in 2021.
The market for digital media increased by 29% to $5.2 billion in 2021.
The market for online gaming increased by 28% in 2021 to $1.2 billion, and it is anticipated to increase to $1.9 billion by 2024.
The market for filmed entertainment grew by 28% in 2021. A total of 757 films were released, more than 100 of which were streamed straight online.
The animation and VFX segment expanded by 103% in 2021 to reach US$ 1 billion and is projected to reach US$ 2 billion by 2022.
The media and entertainment sector has experienced significant expansion, as well as ongoing development through a variety of strategies. The industry has displayed incredible resilience over the last two years, and things have returned to how they were before COVID. There is little question that the pandemic affected consumers’ normal buying patterns. But with the introduction of new technologies and growing digitization, the media and film sector is anticipated to have rapid development in the coming years.
By 2030, it is predicted that the fast-growing industries of OTT services, gaming, animation, and VFX would together generate between US$55 billion and US$70 billion. Digital video consumption has exploded as a result of the industry’s ongoing multimodal expansion, but future growth is dependent on the realization of supply and demand factors.
India ranks fourth in “ICT Services Exports”. The OTT, gaming, animation, and VFX sectors are predicted to drive India’s Media & Entertainment sector’s 10-12% CAGR growth to $55-70 billion by 2030.
Hindi (or any other regional language) material is watched on YouTube by 93% of users.
Indians were among those who spent the greatest time worldwide – 1.9 billion hours or more – on viewing sports online. In 2022, regional programming accounted for 50% of all TV and OTT viewing. OTT platforms and kid’s channels showed a significant demand for the animation section. Digital advertising saw a 30% increase and reached 6.1 billion dollars in 2022 and is projected to reach 12.2 billion dollars by 2027–2028.
Governmental Programmes
The Government of India has taken a number of actions, including digitising the cable distribution industry to draw more institutional funding, raising the FDI cap in cable and direct-to-home (DTH) satellite platforms from 74% to 100%, and giving the film industry status to facilitate easy access to institutional financing.
The Government of India’s Ministry of Information & Broadcasting established the Film Facilitation Office (FFO), which serves as a single point of contact for producers and production firms to receive the necessary filming licences.
The Ministry of Information and Broadcasting will combine the Film Media Units under one company in December 2020, which will result in a convergence of resources and operations and improved coordination, assuring synergy and efficiency in carrying out each media unit’s mission.
The Government of India stated in September 2020 that it will work with IIT Bombay to create an Animation, Visual Effects, Gaming, and Comic (AVGC) Centre for Excellence.
Digital content and technology are likely to rule the next five years, but it’s still unclear as to how much of an influence they will have on the entertainment sector. For example, online videos will soon become the standard in the entertainment industry. As internet usage increases and more people in India’s rural areas acquire smartphones, access to online films will become more widespread, with YouTube aiming to reach 500 million users there. Similarly, other online video platforms, both domestic and foreign, are eager to increase their presence in the nation and take advantage of the dramatic changes in consumer behaviour. Given the current tendencies, it is sufficient to state that this tendency might have a huge impact on both cinema and television.
Written by – Vidhi Chhabra
Edited by – Nandini Pillai