The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high growth strides. Proving its resilience to the world, the Indian M&E industry is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenues. The industry has been largely driven by increasing digitisation and higher internet usage over the last decade. Internet has almost become a mainstream media for entertainment for most of the people.
The Indian media & Entertainment sector is expected to reach US$ 100 billion by 2025, from its estimated size of US$ 17.85 billion in 2015, due to its large capacity to consume new products and businesses1. In 2015, the overall Media and Entertainment industry grew 11.7 per cent over 20141. The largest segment, India’s television industry, is expected to maintain its strong growth momentum led by subscription revenues, representing a year-on-year growth of about 13.2 per cent to reach Rs 60,000 crore (US$ 9 billion) in 2015.
Significantly, with the increased penetration of smartphones and expansion of 3G/4G network in India, the country is likely to see around nine billion mobile application (apps) downloads during 2015, which is five times more than 1.56 billion in 2012. This uptick in app-downloads is also expected to increase the revenue from paid apps to an estimated over US$ 241.16 million as against US$ 144.7 million in 2014. Industry estimates reveal that video games industry grew at a record 22.4 per cent in 2014 over 2013; wherein its net worth rose to US$ 392 million. The Indian animation industry was valued at US$ 748 million in 2014 and is forecasted to grow at 15-20 per cent per annum.Recent Developments:
- Reliance Entertainment (owned by Mr Anil Ambani) and DreamWorks (led by Mr Steven Spielberg), along with Participant Media (led by Mr Jeff Skoll) and Entertainment One (eOne) have formed a new film, television and digital content creation company called ‘Amblin Partners’, and have raised US$ 500 million in debt to develop and produce films
- ScoopWhoop, an Indian digital media and content start-up, has raised US$ 4 million from Kalaari Capital and plans to use the funds for expansion of its video production unit called ScoopWhoop Talkies
- Mobvista International Technology Ltd, a global mobile advertising and game publishing company, plans to increase its investment in India by US$ 100 million over 2015-18, with a view to capture a bigger share of the booming e-commerce and ad-tech space
- The digital arm of New Delhi Television Limited (NDTV) namely NDTV Convergence, that owns and operates the NDTV group's digital properties, has signed a deal worth US$ 13-15 million with content discovery platform Taboola
- Cinepolis India Private Limited, the Indian movie exhibition arm of Mexican chain Cinepolis, has plans to add 60 screens to take its total count to over 250 screens by the end of 2015
- Turner International India has announced the expansion of its television bouquet for children with the launch of Toonami, a channel dedicated to animated action. This is the American company’s third children’s channel in India after Cartoon Network and POGO. Toonami joins an assortment of over 15 channels in the kids’ genre, which attracts close to Rs 500 crore (US$ 75.32 million) in advertising
- San Francisco-based Twitter Inc. plans to set up a research and design (R&D) centre in Bengaluru to grow faster in emerging markets. This will be Twitter’s first such facility outside the US
- STAR India, a unit of 21st Century Fox, acquired the entire broadcast business of MAA Television Network Limited for an undisclosed amount.