The pandemic has impacted the growth trajectory of the Indian Media and Entertainment (M&E) industry. However, the past 18 months also saw the sector adapt and evolve. There have been changes in the consumption habits of the audience; changes in the way our content is created; as well as new and updated methods of distribution and revenue generation. The industry’s goal of becoming a USD 100 billion industry by 2030 continues to remain in sight.
Through initiatives like the AVGC Summit, the industry hopes to realize the true potential of the creative economy in India. Across developed markets, M&E contributes around 3% of a country’s GDP. In India, however, the sector is only around 1% of the GDP, and thus has a lot of headroom to grow. This contribution does not include the indirect impact on allied industries, and the intangible soft power that results from having a globally recognized media industry. Growing the industry will require investment in technology and skilling as well as continuous investment in content. It will also require the support of the Government through light-touch regulation and positive policy initiatives.
AVGC is one of the segments of the industry with the highest potential to grow. The total global market size of the AVGC sector is close to USD 260 billion, with India’s share at less than 1%. Our aim is to capture a 5% share of the global market with an annualised growth rate of 25-30%. This is possible with the cooperation of all segments of the industry as well as the policymakers and regulators.
Gaming and eSports is another segment that has made massive strides in the last few years. The global gaming industry, at USD 160 billion is comparable to the global music and film industries. Last year, the number of online gamers in India reached 360 million. Viewership of eSports has also doubled to 17 million. The emerging eSports landscape is projected to grow at a massive 36% CAGR over the next few years and can power an entire ecosystem of game designers, coders, players, marketers and viewers.
This segment is still in its infancy and needs to be given the freedom to grow without conflicting and ambiguous regulations. Several concerns need to be addressed while aiming for that extremely high growth rate. The industry needs to focus on boosting exports and building new global B2B opportunities, focusing on the convergence of content creation and technology innovation, and investing in talent and skilling. This segment of the industry can grow in regional hubs and has the potential to be similar to the IT boom of yesteryear.
Excerpts from speech of K Madhavan, Chairman, CII National Committee on Media & Entertainment and Country Manager & President, The Walt Disney Company India & Star India at CII SummitFX 2021 and first appeared in the September 2021 issue of CII Communique. Click here to read.