The Indian media and entertainment (M&E) sector is experiencing a surge, projected to reach a staggering ₹3 trillion (approximately USD 37.1 billion) by 2026. This exciting growth forecast is based on a recent report by FICCI (Federation of Indian Chambers of Commerce and Industry) and consulting firm EY.
The report highlights a compound annual growth rate (CAGR) of 10% for the M&E industry, building upon a strong foundation established in 2023. In that year, the sector reached ₹2.3 trillion.
Digital Dominance:
The report identifies digital media as a key driver of this growth. It’s anticipated to potentially surpass television as the leading segment within the M&E industry as early as 2024, with an estimated size of ₹75,100 crore. This digital surge is attributed to several factors:
- Robust Digital Infrastructure: India’s growing internet penetration and expanding access to affordable smartphones are fueling online content consumption.
- Rise of OTT Platforms: Over-the-top (OTT) platforms like Netflix, Disney+ Hotstar, and Amazon Prime Video are witnessing immense popularity, offering diverse content libraries and flexible subscription options.
- Gaming Boom: The Indian gaming industry is experiencing explosive growth, attracting a vast user base across various genres – mobile, PC, and console gaming.
- Cost-Effective Options: The availability of a wide range of affordable data plans and free-to-play games further propels digital media consumption.
Beyond Digital:
While digital media takes center stage, traditional segments like television and film are also expected to witness steady growth. Regional language content is gaining significant traction, catering to diverse audiences across India. Additionally, increased advertising expenditure is projected to contribute to the overall growth of the M&E sector.
Challenges and Opportunities:
The report acknowledges challenges such as content piracy and the need for skilled personnel to navigate this dynamic landscape. However, the overall outlook for the Indian M&E industry remains optimistic. The increasing disposable income of a growing middle class, coupled with India’s young demographic, presents a wealth of opportunities for content creators, distributors, and technology companies.
This growth trajectory positions India’s M&E sector as a major player in the global entertainment market, offering a vibrant platform for local and international content creation and consumption.
