Digital video, gaming segment to lead media boom: CII-BCG report

Powered by significant internet and smartphone penetration growth, the digital video and gaming segment is expected to lead the "boom" with over 40 percent of total media consumption in 2022, according a report by Confederation of Indian Industry (CII)- Boston Consulting Group(BCG) survey. The growth in digital consumption is outstripping all other segments, says the report.

According to the report, Media and Entertainment industry in India is estimated to be worth USD 2729 billion in 2022 and USD 5565 billion by 2030, with a potential to reach $65–70Bn, driven by growth in OTT and gaming.

An industry report released by the Confederation of Indian Industry (CII) and Boston Consulting Group on the Indian media and entertainment industry is entitled, “Shaping the Future of Indian Media and Entertainment.” Senior leaders K Madhavan, Biren Gosh, Neeraj Roy, and Amit Khanna attended the launch, among others.

The report stated that the Media and Entertainment industry has witnessed a huge setback during the pandemic, and is now back in its pre covid growth story. The report is a culmination of in-depth research and analysis of the Indian Media and Entertainment (M&E) industry and the way forward for industry players.

The report highlighted the OTT platforms as they play an important role in the media and entertainment industry, which has undergone rapid changes due to "accelerated technological progress and evolving consumer behavior".
“Among the newer waves of trends, one which will both dictate strategy, as well as influence competitive advantage, will be Metaverse which stands at the confluence of multiple disruptive technologies.” It added.

Between 2020 and 2022, the India Media and Entertainment industry will grow by USD 6 billion, with "two-thirds of the growth" driven by digital.
The report also mentions the subscriptions on SVOD platforms that are estimated to grow 8590million in 2022 with “an increase of 16x17x over past 5 years.”

Where we can watch people intending towards the OTT platforms, television is still holding families together. The report mentioned “TV continues to be a family viewing platform with 82% consumers reporting co-viewing with 3.5 average number of co-viewers per household in 2022”
In addition, "increasing willingness" to pay for premium/exclusive content has emerged. Some of these emerging trends are likely to have long-term implications for the industry.

"OTT sphere has exploded with strong subscription growth and increased investments in content. On the back of rising interest in interactivity, gaming continues to show promising growth," it said.

While mentioning the Ad spending, the report stated, “While Ad spending in India is growing at an 8% CAGR, the potential to increase Ad spending exists”

“Advertisers adopting diversified mediums and digital share increased to 40%” it added.
The report added that media businesses and content producers are already working to give viewers more engaging and immersive experiences, even though this trend is still in its infancy. To strengthen their position and become more significant in the lives of consumers through interactivity, M&E companies will need to stay up with these developments, it was stated.