India’s over-the-top (OTT) market, led by audio and video consumption, is driving growth of the media and entertainment sector, audit and consultancy firm KPMG said in a report on Tuesday. Year-on-year growth in 2018-19 (FY19) of the OTT or digital market, said KPMG, was 43.4 per cent, the highest across all verticals it analysed.
The OTT market is now Rs 17,300 crore in size, KPMG said, with the compounded annual growth rate over the next six years projected at 29.1 per cent. By FY24, this market will become Rs 62,100 crore in size, it said, ahead of print (Rs 40,900 crore) and second only to television (Rs 1.2 trillion).
Factors driving growth of OTTs include a growing digital subscriber base, a spurt in demand for digital content, and digital advertising. At an overall level, the media and entertainment market will nearly double in six years, KPMG said, touching Rs 3.07 trillion by FY24 from Rs 1.63 trillion now. Besides OTTs, gaming, animation, music, and television segments will be growth drivers.