Online platforms are driving the strongest growth, with gaming and OTT being the poster segments.
Come out strong in an economic storm
India’s entertainment and media (E&M) industry is not only weathering the global pandemic, crises and wars, but it is growing steadily, a The PwC report showed. The global consultancy forecasts the macro sector to be worth Rs 4.3 lakh crore by 2026, maintaining a healthy growth of 6.3%.
Almost all segments performed well in the complex economic climate, but OTT platforms and online games advanced the most, followed by the recovery of the advertising, film and newspaper industries. India is expected to soon overtake the UK and France as the largest newspaper market and by 2025 even China in overall print readership. Forecasts place the EU TV market just behind the US, China, Japan and the United Kingdom. Major Covid disruptions have not affected long-term E&M, according to PwC. This is especially true for online media and digital entertainment, as new revenue models loom with the impending rollout of 5G. Digital advertising has also performed quite well due to the deeper penetration of mobile devices and services.
If the Center succeeds in regulating real-money entertainment and online kitty games, industry growth could be even greater, experts point out. In fact, the total numbers may even be an underestimate, according to industry studies. Digital entertainment has become the norm for many urban consumers, with even rural communities providing substantial online market expansion. Mobile entertainment apps are reaching previously untapped demographics. And many regular users expect central regulation of popular gaming services like a online lottery purchase.
Online gaming figures reveal astonishing potential
The overall market size of desi favorites like lottery has been at least Rs 50,000 in pre-TPS sales reports, industry research reveals. With around 27 million daily transactions, the market was even considered twice as big as illegal lotteries and offshore raffles hiding additional market revenue. These numbers alone have taken Indian lotteries to over Rs 1 lakh crore in annual terms (USD 13 billion).
Similar market calculations underscore the fact that the E&M report may underestimate the potential and even current size of the industry. Online games alone are confirmed to have grown by 28% through last year, topping $1.3 billion. Admittedly, it is the fastest growing E&M segment, but its mass national appeal and size are still relatively limited.
There are around 400 million online and mobile gamers, but an even bigger TV audience, for example. However, with innovations such as virtual reality (VR) and mass market introductions such as pre-installed mobile gaming apps, market experts predict that the online entertainment industry may take off and overtake traditional media. much faster than initially thought.
The booming Indian desi gaming industry is expected to be the leading E&M segment in the coming years. With a number of tech hubs across the country and years of IT experience and business support, the local digital industry is expected to contribute to market growth and place the Union firmly among the global leaders.
