BCG released a report titled “Shaping The Industry At A Time Of Disruption – Taking Indian M&E Industry Towards A $100 Billion Aspiration” at the BCG-CII 4th Big Picture Summit on the future of Indian media and entertainment.
The report assesses the progress over the past five years, where it has been growing at a stable 10% Year on Year (YoY) and currently valued at INR 115,500 Crores.
Indian Media & Entertainment (M&E) industry has the potential to reach $100 billion by 2025 (including distribution revenues from broadband) by 2025. This would imply growth to Rs.210-250,000 Crore by 2020. Such robust growth can come only on the back of enabling infrastructure and the support of the government and the industry itself. With a growth potential of 13-16% YOY it has to potential to emerge as one of the largest employment providers, contributing significantly to the Gross Domestic Product (GDP).
“At the core of this optimism is the fact that the underlying Indian consumer trend is positive,” notes Kanchan Samtani, Partner & Director at The Boston Consulting Group. “Unlike mature Western markets, digital media could expand the overall market size by tapping into latent demand and driving new media consumption rather than merely replacing other, more traditional platforms.”
The significance of India’s M&E sector cannot be stated enough. It has the world’s third largest television viewership base after the U.S. and China, the world’s second largest print industry in terms of circulation, and produces the highest number of films worldwide (1900+ films per annum). The next decade, however will be the decade of change. We see the interplay of five forces creating a tectonic shift which can potentially catapult the industry into the next orbit of growth. India is gearing for a consumption explosion.
New consumption behaviors will get created with always-on, on-the-go, on-demand and seamless pick-where-you-left models across multiple devices and time frames. The distinction between prime and non-prime time will become redundant due to these changing patterns and behaviors of online consumption. It will also create fragmented audiences. With the ever-increasing choice of content and the popularity of time-shifted and on-demand viewing, measuring viewer behavior will become increasingly critical as it will facilitate targeted advertising. Further, there is a fast growing need for innovative and newer ad formats for effective monetization.
The Report titled as “Vision 2020 Document on Media & Entertainment Sector” will be discussed threadbare at the 4th edition of the CII Big Picture Summit to be held on 19-20 October 2015 in New Delhi. This annual event pioneered by CII is the platform to address concerns and challenges of the industry among the stakeholders to ferret out newer ideations and suggest measures for creating an eco-system for accelerating the growth of the industry.
At the same time the next decade could also provide India the opportunity to emerge as a global M&E hub. Opportunities, content and players are all becoming universal, and India—backed by a stable macroeconomic outlook, a youthful, English speaking workforce and the government’s “Make in India” and “Digital India” blueprints—is strongly positioned to exploit such trends. “To advance industry growth, India needs to establish itself as a global production hub and encourage higher investment in the M&E sector – from global and domestic players” states Neeraj Aggarwal, MD, The Boston Consulting Group – India.
Linear value chains of the past will collapse, accommodating new roles and new players. “This evolving ecosystem will create new winners and these winners will do three things differently,” contends John Rose, Senior Partner at The Boston Consulting Group. “They will think big, leverage multiple monetization models – adding up dimes to create dollars and invest heavily in content – for content will continue to be king.”
