Indian M&E industry grew by $6 billion between 2020-22; two third growth from digital

The Indian M&E industry grew by $6 billion between 2020-2022, according to CII – BCG Big Picture 2022 report.

The report mentioned that out of $6 billion, $4 billion was added by the digital (gaming+OTT+Digital advertising, excluding AVOD) segment to the M&E industry.

The industry is poised to grow to $55–65 billion by 2030 with a potential to reach $65–70 billion, driven by growth in OTT and gaming, stated the report.

The report further stated that the Indian M&E industry is estimated to be valued at $27-29 billion by the end of 2022 with 2/3^rd of growth in the last ~3 years coming from the digital subsegments.

Out of $27-29 billion, the digital segment (gaming+OTT+Digital advertising, excluding AVOD) is estimated to reach $10-11 billion in 2022.

Contribution of television is estimated at 32-34%, print at 22-23%, gaming and OTT at 8-10% each and digital advertising at 10-12%, cinema at 5-7% and others (Animation & VFX, OOH, Audio; Print includes newspapers, magazines & books) at 6-8% in 2022.

In 2021, the contribution of television to the Indian M&E growth was 35%, print 25%, gaming and OTT at 8% each, digital advertising at 11%, cinema at 5% and others at 7%.

While the Indian M&E percentage share of GDP has increased in the last 5 years, India still lags behind global peers, indicating a potential upside. In 2017, the share of Indian M&E stood at 0.79% of the GDP. It increased by 10 bps to reach 0.89 % of the GDP.

Further, the report highlighted the increasing willingness to pay for premium/exclusive content. Subscriptions have grown 16x–17x over the last five years to 85–90 million in 2022. The report also foresees SVoD becoming more prominent in the overall OTT revenue going forward.

The report also looks at the relative proportion of revenues coming from advertisements versus consumers paid. The share of advertisements is now at 44% versus 37% in 2021. The report stated that while advertisers are adopting diversified mediums; digital share grows to ~40% in 2022 from 37% last year with digital native advertisers gaining prominence.

The report further highlighted multiple trends that are shaping the industry - increased preference for personalised choices, interactive two-way media and snackable content.

“Today, consumers can access content across any device, with a strong preference for regionals and micro-genres. M&E is increasingly catering to ‘ME’ or personalised choices. Digital video and gaming contribute to >40% of total media consumption in 2022. These formats enable the shift from a ‘mass’ to ‘individualised / ME’ experience,” elaborated Mandeep Kohli, Managing Director and Partner, Boston Consulting Group India.

The Confederation of Indian Industry (CII) and Boston Consulting Group (BCG) unveiled their flagship report on the Indian Media & Entertainment (M&E) industry, titled ‘Shaping the future of Indian M&E’.

Chandrajit Banerjee, Director General, CII, said, “This year’s report, put together by BCG with the help of the CII M&E Committee, provides a current & future overview of the industry, sector-wise trends and disruptions that will shape the future of the industry. The report will help businesses dictate strategy as well as influence competitive advantage and aide the government in framing measures to accelerate the growth of the sector.”

One of the major themes in this year’s report is the real opportunity unlocked from the adoption of the Metaverse. It is estimated to become a $10+ billion opportunity by 2030. Currently, 36% of global private investment in Metaverse is in interactive entertainment.

“Metaverse’s interactive ability enables users to interact, socialise, and collaborate in virtual spaces. In times to come, Metaverse, with its interactive and immersive features, could become all pervasive as companies strive to ensure customer adoption-engagement-retention,” shared Kanchan Samtani, Managing Director and Senior Partner, Boston Consulting Group India.

Going forward, it will become critical for M&E companies to understand the imperatives that will help them seize opportunities in the metaverse and harness its true potential for the industry.

The report highlights five dimensions to unlock this potential – investing in technology and infrastructure, business model innovation, building a metaverse content production ecosystem, acceleration of consumer adoption and codification of regulation.

Biren Ghose, Vice-Chairman, CII National Committee on M&E and Country Head, Technicolor India, said, “Storytellers and content creators will have to reinvent their formats towards greater interactivity and democratized mediums. Media companies need to proactively think through their architecture as they build towards the metaverse, we need to build systems today that are agile and fungible so that we don't have to fix it later.”

K Madhavan, Country Manager and President, Disney Star, said, “Over the past few years, especially during the covid times M&E played a critical role in consumers’ lives and proved the resilience of the industry. The M&E industry has seen a good comeback and is one of the fastest-growing industries in India. The M&E industry has evolved considerably and has seen rapid changes fueled by innovation across the media value chain and evolving consumer behaviours.”

Setting the tone for the coming years, Madhavan further said “M&E companies will need to keep up with emerging trends to fortify their position and be more important in consumer’s lives. As more M&E players invest in transformational ideas of the future, I am confident, the best is yet to come for the industry.”

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