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Indian Media and Entertainment Sector Reaches Rs1.67 Trillion In 2018, Up 13.4%

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Capital Market
Last Updated : Mar 14 2019 | 1:50 PM IST

The Indian Media and Entertainment (M&E) sector reached INR1.67 trillion (US$23.9 billion) in 2018, a growth of 13.4% over 2017, states the FICCI-EY report, 'A billion screens of opportunity,' launched at the FICCI FRAMES 2019 in Mumbai. With its current trajectory, the M&E sector in India is expected to cross INR2.35 trillion (US$33.6 billion) by 2021, at a CAGR of 11.6%. While television retained its position as the largest segment, growth is expected to come from digital which will overtake filmed entertainment in 2019 and print by 2021. The report captures key insights from the exciting and fast-growing Indian M&E sector.

The sector continues to grow at a rate faster than the GDP, reflecting the increasing disposable income and economic growth. India has the second highest number of internet users after China with 570 million internet subscribers growing at 13% annually. The report estimates that approximately 2.5 million consumers in India today are digital only and would not normally use traditional media. It is expected that this customer base will to grow to 5 million by 2021.

Traditional media companies spent 2018 building their customer data through second-screen interactive propositions, polls, house-to-house surveys, integration of third-party data, etc. Digital consumption will grow, and monetization avenues will see great innovation to cater to the new Indian customer segments. Telco bundling will drive consumption for a majority of Indian OTT audience. Advertising growth outpaced subscription growth and is expected to comprise 52% of the total pie by 2021.

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First Published: Mar 14 2019 | 1:14 PM IST

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