Digital Transformation: A Healthier Future For The M&E Industry
Technology has bridged the gap between the content transfer modes, but the feasibility to reach every corner of the country has taken shape after the revolutionary steps taken by telecom giants. The acquisitions and the mergers in the telecom sector have totally changed the data movement over the e-platform.
The content development for the Indian media and entertainment (M&E) industry operates in a totally distinctive manner. With such a multilingual and multicultural environment, the creative part has multiple facets, so has the cycle of demand and supply. The government’s initiative for technology-driven projects and the contribution by the private sector for developing and providing the infrastructure for such an initiative, has provided a drastic change in the industry’s approach. The industry has been largely driven by increasing digitization and higher internet usage over the last decade. The internet has almost become a mainstream media for entertainment for most people.
The Indian content demand is not limited to Indian users only. There are prospective users across the globe and particularly in the Indian sub-continent with similarity in language, culture, and traditions. These users have the ability and willingness to pay for digital content services. On the contrary, Indian consumers have increased consumption of international content in the past few years. Both the demands will further increase if the digital platform infrastructure supports.
With the digitization of TV services in India, OTT consumption demand has amplified. Digital cable TV distribution companies are upgrading their set-up boxes to next-generation technologies which can support both traditional cable television and live OTT multiscreen services. Earlier cellular data services over smart phones on the telecom network and DTH TV on the satellite network platform were sources of content/OTT consumption. The realization of rising content demand will be possible only if the infrastructure is ready. Here, infrastructure measures the commercial studios, studio gears, workstations, manpower, and many more features.
India is one of the highest spending and fastest growing advertising market globally. The country’s expenditure on advertising is expected to grow at 12 percent to `61,100 crore (USD 9.47 billion) in the current year. The television segment, which continues to hold the highest share of spending accounts for 41 percent of the total market share, and is expected to grow by 10.3 percent.
The Indian M&E sector is expected to grow at a compound annual growth rate (CAGR) of 13.9 percent to touch `2.42 trillion (USD 37.57 billion) by 2021, while revenues from advertising are expected to grow at 15.3 percent to `1.08 trillion (USD 16.74 billion).
Over FY 2016-21, radio will likely grow at a CAGR of 16.1 percent, while digital advertising will grow at 30.8 percent. The largest segment, India’s television industry, is expected to grow at a CAGR of 14.7 percent, while the print media is expected to grow at a CAGR of 7.3 percent.
The Minister for Information and Broadcasting, Government of India, has stated that the Indian M&E industry, mainly the broadcasting sector, is on the peak of a stronger growth phase led by the recent government initiatives like Make in India, Skill India, Digital India, and goods and services tax (GST).These initiatives not only boost the economy growth but also build confidence among stakeholders.
The government of India has supported industry’s growth by taking various initiatives such as digitization of the cable distribution sector to attract greater institutional funding, increasing FDI limit from 74 percent to 100 percent in cable and DTH satellite platforms, and granting industry status to the film industry for easy access to institutional finance.
With the government initiatives, giant mergers, technology transformation, and user friendly e-platforms, there is definitely a better future for the industry.
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