Future of Media Technology Entertainment in India

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What is future of Media, Technology and Entertainment Business in India?

In Indian economy the Indian Media and Entertainment industry is a growing sector backed by rising consumer demand and improving advertising revenues. Over the last decade, Indian Media and Entertainment industry has been driven by increasing dispensation and higher internet usage.

For most of the people in India, Internet has become a mainstream media for entertainment.After China in Asia, Indian advertising industry is projected to be the second fastest growing advertising market. Currently, advertising revenue accounts for around 0.38 per cent of India’s gross domestic product. This sector of the economy is on an impressive growth path. In retail advertisement, growth is expected. Factors such as creativity, innovation and evolution describes the Media & Entertainment industry. It is also important to manage costs, exceed stakeholder expectations and comply with new regulations. By the year 2021 after the US and China, Indian film industry is expecting strong growth to become the third largest cinema market.

Market Size

  • By the year 2021, the Indian media & entertainment sector is expected to grow at a Compound Annual Growth Rate of 13.9 per cent to reach US$ 37.55 billion from US$ 19.59 billion in 2016, global average of 4.2 per cent.
  • Radio will likely grow at Compound Annual Growth Rate of 16.1 per cent over the financial year 2016-2.
  • Digital advertising will grow at 30.8 per cent.
  • India’s television industry the largest segment is expected to grow at Compound Annual Growth Rateof 14.7 per cent,
  • Print media is expected to grow at Compound Annual Growth Rate of 7.3 per cent.

Globally India is considered as one of the highest spending and fastest growing advertising market. In the year 2017, on advertising country’s expenditure is expected to grow at 12 per cent to US$ 9.47 billion.

By the end of the year, mobile advertisement expenditure in India is estimated to grow to US$ 1.55 billion according to a joint report titled ‘Mobile Ecosystem and Sizing Report’ by Mobile Marketing Association (MMA) and Group M.

Foreign Investment

According to data released by Department of Industrial Policy and Promotion (DIPP), during the period April 2000 – June 2017, Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B) sector (including Print Media) stood at US$ 6.58 billion. In India, digital advertisement spends is likely to increase due to growing internet penetration and data consumption.

Regulatory Authority

In Indian Media and Entertainment industry to set up a business one need to care about the broadcasting laws and regulations. Broadcasting laws consists various technical parameters as well as various issues regarding the content such as copyright, racism, regionalism, and local ism. Under this industry TV channels must host the content according to these aspects otherwise they would get penalized or banned.

Government Initiatives

Minister for Information and Broadcasting, Government of India, has stated that due to recent government initiatives like Make in India, Skill India, Digital India and Goods and Services Tax (GST), the Indian Media and Entertainment industry, mainly the broadcasting sector is on the peak of a strong growth phase. Government initiatives such as digitizing the cable distribution sector to attract greater institutional funding, in cable and DTH satellite platforms increasing FDI limit from 74 per cent to 100 per cent, and for easy access to institutional finance, granting industry status to the film industry, Government of India has supported Media and Entertainment industry’s growth.

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