India has the world’s second-highest number of internet users after China, with about 570 million internet subscribers, increasing at a rate of 13% annually.
With the growing base of internet users, digital media in the country is expected to overtake film entertainment in 2019 and print by 2021 to reach USD 5.1 billion in 2021, according to a FICCI-EY report.
Film segment was valued at USD 2.5 billion in 2018 and estimated to be USD 2.8 billion in 2019, while print was valued at USD 4.4 billion in 2018 and anticipated to reach USD 4.8 billion in 2021.
Digital media grew by 42 per cent in 2018, valued at USD 2.4 billion It said noting that Indians used 30 per cent of their phone time on entertainment. It requires that digital medium to be USD 3.2 billion in 2019.
India has the world’s second-largest number of internet users after China, with around 570 million internet subscribers, increasing at a rate of 13% annually.
There were 325 million online video viewers and 150 million audio streaming users in 2018. It requires each country to have 30-35 million funding OTT video subscribers and 6-7 million paying audio subscribers by 2021. The advertisement led model was valued at USD 2.2 billion, while the subscription was valued at USD 0.2 billion in 2018.
By 2021, it expects ad copy to be USD 4.3 billion and the subscription model to be USD 0.8 billion. “While watch time could get 3 to 3.5x over the next 5 years, ending in massive inventory increase, advertisement revenues order get only around 2x. CPMs (cost per mile) will correspondingly fall during the period for non- select inventory,” it said. It saw that telecom operators would match the new multi-system operators.
“While 60 per cent of total investment today is through telco bundles, it is estimated to increase to over 75% by 2021 and cater to over 375 million subscribers,” it added.
It noted that with the new TRAI Tariff order, OTT platforms would benefit due to improved equality among television and OTT content choices including prices. Overall the Indian media and entertainment sector touched USD 23.9 billion, a growth of 13.4 per cent over 2017. It is required to grow to USD 33.6 billion by 2021.
“During 2018-2021, the increase will be driven by online gaming and digital tools,” it said continuing that TV will retain its pole place as the largest segment in terms of revenue.
Indian online gaming subscriber base increased from 183 million in 2017 to 278 million in 2018, it noted, adding that the revenue is expected to be 1.7 billion in 2021 from 0.7 billion in 2018.
Tv grew at 12% in 2018 to reach USD 10.6 billion and is estimated to be USD 13.7 billion by 2021.
“Indian broadcasters will remain to increase their global footprint. Global funds could reach 15 per cent of the topline by 2021,” it said.