Digitization, the Way Forward for M&E Sector
Date: Wednesday , August 31, 2016
The Indian Media & Entertainment (M&E) industry is witnessing the dawn of its life and is acting as one of the important revenue generator for the economy that also employs a large number of people under its hood. PwC in its Global Entertainment and Media Outlook 2016-2020, states that the Indian M&E sector is expected to exceed $40 billion by 2020, growing at an average annual rate of 10.3 percent between this period. The FICCI-KPMG Media and Entertainment industry\'s 17th edition of FICCI FRAMES on the theme \'Change or Perish - The Year of Digital\' states that the M&E industry in India is expected to grow at a CAGR of 14.3 percent to Rs.2,260 billion by 2020 from Rs.1,158 billion in 2015. This growth will be led by advertising revenue which is expected to grow to Rs.994 billion (from Rs.475 billion in 2015) at a CAGR of 15.9 percent. Backed by rising consumer demand and improving advertising revenues, credit to the increasing digitization and higher internet usage over the last few years, the Indian M&E industry is poised to see humungous growth.
Growth of video and audio streaming platforms, both desi and international, and the much anticipated 4G services that began last year has laid the perfect pitch for the industry to grow in the coming days. But it is important to see how the industry catches up with international trends and prepares itself for the new global war of digitization. From movies to daily soaps, all have turned towards the digital platforms (global - YouTube, Dailymotion, Amazon Video, Facebook Video, Netflix and others, and the desi ones - hotstar, Voot, EROS Now, Yupp TV, ditto TV and others) to provide on-the-go service to viewers.
In this industry synonymous with creativity and innovation, the bar for business excellence is set high. You need to embrace new technology, develop new distribution models and satisfy the demands of a voracious and outspoken consumer. At the same time it is important to manage costs, exceed stakeholder expectations and comply with new regulations. There are several M&E companies in the ecosystem and we bring to you 20 of them under our \'20 Most Promising Media & Entertainment Companies - 2016\'.