22 Aug 2022
Booming Media and Entertainment Industry
Media is consumed by the audiences in many ways like televisions, films, radio, animation, music, gaming, visual effect, digital advertising, live events, print media, and filmed entertainment. This media and entertainment industry is expected to reach $30.9 billion by 2024. Indians are spending 80%. of the time on mobile apps, gaming, and entertainment. This industry is expected to grow at a CAGR of 10-12%. There is a great demand for regional content among the people. This is favorable for the share of TV content and OTT consumption which is expected to reach 60% and 50 % respectively by 2025. You see around, everyone busy on their phones, pads, tablets, and laptops watching social media videos, movies, music videos, and playing games. During COVID times when there was no option to go outside and entertain, people were fully dependent on media and entertainment available online to keep the rhythm of life. There was a sudden increase in the purchase of home theatres, music system TV, speakers, PlayStation, etc. to entertain and engage people at home.
The main driving factors for the growth of media companies are the increasing young population, smartphone and broadband subscribers, affordable mobile data prices, and easy online payment transactions. In September 2020, the government of India announced the plan for AVGC center formation along with IIT, Bombay. AVGC is Animation, Visual Effects, Gaming, and comics all together under one roof. Television households in India continue to grow at over 5% per year to cross 71% of Indian households by 2025. Another good initiative by the Indian government is digitizing the cable distribution sector to gain more institutional funds India has the required skills and talent for the M&E industry. Internet users are increasing at a CAGR of 45% until 2025 and so is the demand for advertising-based video (AVoD) which is rising at a CAGR of 24 percent. This means there is robust demand in this sector. The rapid growth of the OTT channel's demand for animated content and large investments in the visual effects sector has provided opportunities for both the domestic and international sector.
PPG F.I.E Association offers a varied range of media and entertainment companies. They are into products like multimedia speakers etc. Major growth drivers are rising demand for quality content in the form of audio, video, prints, etc., and affordable subscription packages for the common man. The Indian Government is taking various initiatives to fuel the economy and growth of the country as a whole.