 "TV to ride the media & entertainment boom")
The media industry in India will cross Rs 2,00,000 crore in revenue by 2020 and Rs 4,60,000 crore by 2025.
The sector is expected to reach Rs 1,31,000 crore in revenue in 2016 after growing 11 per cent every year since 2012, according to a report by the Confederation of Indian Industry (CII) and Boston Consultancy Group.
Consumption of media content is growing faster in rural areas than among urbanised households, however, per person consumption remains lower in rural households at 33.5 hours per week against 43.8 hours per week in urban areas.
The time spent on watching films and television is significantly higher in cities, 1.1 hours and 21.7 hours per week, respectively, compared to 0.4 hours and 18.6 hours, respectively, in rural areas. The time spent on print media is 3.4 hours per week in rural areas, slightly lower than 3.7 hours in urban areas. And the time spent on internet content is 10.3 hours per week in urban areas against eight hours in rural areas.
“The digital medium now has the ability to change the game for the industry and prove itself pivotal to future progress,” the report states. Although the per person consumption of traditional media continues to grow at three per cent, digital consumption has grown 15 per cent annually. “This points to a growing pool of new, but low-volume users, who are rapidly being inducted into the existing consumer stream across the country,” the report says.
“Internet consumption is proving to be an additive form of media consumption as compared to being substitutive. Internet connectivity is fundamentally changing individual media consumption habits across the country as it increases the number of hours spent on media consumption in a day,” the report adds.
Media consumption remains low in India at 38 hours per week against the global average of 46.1 hours. The report identifies three drivers for media consumption growth in India over the next five years: tapping the rural un-connected consumer, capturing a large share of time of the digitally connected consumer, and a supply explosion for strategically segmented audiences.
“We see two waves of consumption growth in rural penetration and per capita consumption. With the exception of radio, media penetration in rural areas is currently 30 per cent (TV) to 60 per cent (Internet), lower than urban centres, and represents a significant scope for future growth,” the report states.
India's rural growth story, driven by digital media, is expected to replicate China's growth in rural consumption. As penetration and content supply for digital media increased in China, smartphones replaced TVs as the preferred viewing screen
