New Delhi: The Indian media and entertainment industry is projected to grow at a compound annual growth rate of 11.7 per cent from 30.3 billion dollars in 2017 to 52.6 billion dollars in 2022, according to a joint study conducted by industry body ASSOCHAM and consulting major Pricewaterhouse Coopers (PwC).
This is largely due to rising populations, increasing disposable incomes and new technologies which have fuelled the growth of all forms of content consumption. Television, cinema and over-the-top (OTT) services will collectively account for 46 per cent of the overall growth, said the study titled Video on Demand: Entertainment Reimagined “We are now seeing the third wave of convergence in the entertainment and media industry,” said Frank D’Souza, Partner and Leader, Entertainment and Media Sector, PwC India.
“The five fundamental drivers of this convergent business model are uninterrupted connectivity, mobile devices becoming the primary source of content consumption, the need to move away from traditional revenue streams, value shifting from content creators to platforms, and ability to provide a personalised offering to the consumer.”
The PwC study said data consumption in India will grow from 71,67,103 million MB in 2017 to 10,96,58,793 million MB in 2022 at a CAGR of 72.6 per cent. With lower than ever data tariffs and increasing smartphone penetration in the country, it is safe to assume that the VoD market will be a significant beneficiary of these developments. However, the per capita media and entertainment spending will be capped at a mere 32 dollars by 2021 compared to 222 dollars in China and 2,260 dollars in the United States.