The Indian media and entertainment industry is estimated to touch $52,683 million (around Rs 3.73 lakh crore) by 2022 led by increasing disposable income, population and content consumption across the formats, according to a survey.
Besides the traditional media such as TV and cinema, new-age digital platforms such as over-the-top (OTT) services would play a key role, said an Assocham-PwC joint study.
By 2022, the Indian video OTT market will be among the top-10 markets globally with a market size of $823 million (Rs 5,363 crore), said the study.
"The entertainment and media industry is projected to grow at a CAGR of 11.7 per cent from $30,364 million in 2017 to $52,683 million in 2022," the report said.
It further added: "TV, cinema and OTT will collectively account for 46 per cent of the overall growth in the Indian entertainment and media industry for the period 2017 to 2022."
The survey added that both the conventional media industry as well OTT players will coexist in India and achieve impressive growth in the coming years.
With the launch of OTT services, video-on-demand (VoD) has been at the forefront of disruption in the media industry, and the production budgets of companies such as Netflix and Amazon now rival those of traditional studios, said PwC India Partner and Leader (Entertainment and Media Sector) Frank D'Souza.
"Globally, the OTT market is set to grow at a CAGR of 10.1 per cent during the period 20172022. During the same period in India, the segment is expected to grow from $297 million (Rs 1,932 crore) to $823 million (Rs 5,363 crore) in 2022 at a CAGR of 22.6 per cent," it added.
In this, subscription video on demand (SVoD) will hold a majority share throughout the projected period, it said.
According to the joint survey, over the past decade, the VoD market has evolved across the world, including India, and now with increase in smartphone penetration and lower data tariffs, it is showing promising growth here.
"Mobile video advertising (largely AVoD) is the fastest growing sub-segment of India's Internet advertising market, projected to rise at a CAGR of 32.8 per cent from 2017 to 2022 and to reach $317 million (Rs 2,064 crore) by 2022," it added.
Data consumption in India will grow from 71,67,103 million MB in 2017 to 10,96,58,793 million MB in 2022.
"With lower-than-ever data tariffs and increasing smartphone penetration in the country, which is around 40 per cent as of 2017, it is safe to assume that the VoD market will be a significant beneficiary of these developments," it added.
Now, the regional and quality content, delivered with a focus on unique and customised 'user experience' through the use of technology, is set to become the mainstay of success for VoD service providers.
However, it also added that the country's per-capita media and entertainment spend will be capped at a mere $32 by 2021.
"The spend is much lower than that of China, which will stand at $222 for the same period, and that of the USA, which will have the highest spend at $2,260," it added.