The Indian Media and Entertainment (M&E) sector reached INR1.82 trillion (US$25.7 billion) in 2019, a growth of around 9% over 2018, according to the FICCI EY report 'The era of consumer A.R.T. - Acquisition Retention and Transaction,'. With its current trajectory, the M&E sector in India is expected to cross INR2.4 trillion (US$34 billion) by 2022, at a CAGR of 10%.
While television and print retained their positions as the two largest segments, digital media overtook filmed entertainment in 2019 to become the third largest segment of the M&E sector. Digital subscription revenues more than doubled from 2018 levels and digital advertising revenues grew to command 24% of total advertising spend. The sector continues to grow at a rate faster than the GDP, driven primarily by growth in subscription-based business models and India's attractiveness as a content production and post-production destination.
The rapid proliferation of mobile access is enabling on-demand, anytime-anywhere content consumption nationwide. With a population of 1.3 billion, a tele-density approaching 89% of households, 688 million internet subscribers and nearly 400 million smartphone users, India's telecom industry is poised to become the primary platform for content distribution and consumption. India ranks as one of the fastest-growing app markets globally, where entertainment apps are driving significant consumer engagement.
Online gaming retained its position as the fastest growing segment on the back of transaction-based games mainly fantasy sports, increased in-app purchases and a 31% growth in the number of online gamers to reach around 365 million.
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