Confederation of Indian Industry (CII) and Boston Consulting Group (BCG) have unveiled the flagship report of the media and entertainment sector, titled, “Blockbuster Script for the New Decade: The Way Ahead for the Indian Media and Entertainment Industry”.
The report explores the recovery of the media and entertainment industry after the effects of the COVID-19 pandemic and highlights key imperatives to achieve its potential over the next decade.
K Madhavan, Chairman, CII National Committee on Media and Entertainment and President, The Walt Disney Company India and Star India, said: “It is heartening to see that hard work is being done by all stakeholders to address the great challenges, Both professional and personal, has paid off and now our industry is back on track. Media and entertainment played a vital role in navigating the country and overcoming this crisis and cementing their role in people’s lives.”
The report said the industry is set to grow at a CAGR of 9-11 percent to $55-70 billion by 2030, with digital video and gaming being the biggest growth drivers.
Siddharth Roy Kapur, Co-Chairman, CII National Committee on Media and Entertainment and Founder and Managing Director, Roy Kapur Films, said: “Film production and film exhibitions were among the worst-affected sectors in the M&E business due to the pandemic. After a long period of one-off shutdown, cinema halls are now back in business with a bang. A large number of big-ticket movies are slated to release well into 2022. This bodes well for the sector. , but limits on engagements, theater closures and modified audience behavior can affect the pace of recovery. Streaming, on the other hand, has provided new avenues for screening and broadened the options available to producers, artists and technicians- based.”
Biren Ghosh, Vice-Chairman, CII National Committee on Media and Entertainment and Country Head, Technicolor India, said: “This year’s CII E BCG Big Picture report appropriately depicts the sports sector in India, titled ‘Future is Play’. Despite sporadic regulatory hiccups, in some states, the segment is growing at around 30 per cent per annum which is the highest in the Animation and Visual Effects (AVGC) sector.”
The report throws light on the multiple growth story of the media and entertainment industry. The Indian OTT sector is currently in a scaling phase with strong subscription growth and high investments in premium and original content. The sector is one of the most competitive in emerging markets with 40+ players representing all types of content providers.
As was the case with other industries, the past year has been challenging for the media and entertainment industry. However, the industry has shown a marked improvement with TV advertising volumes bouncing back to pre-Covid levels and expected to grow in future, driven by increased advertising on regional channels and entry of new advertisers. AVOD is now one of the fastest growing advertising segments in India, driven by the rise of interactive ad formats, amalgamation of content and advertisements and the short form AVOD Platforms.
One of the key themes in this year’s report is the industry’s anticipated transformation over the next decade. The media and entertainment industry is at a turning point of change, offering rapid growth in some sectors. “To realize this growth, companies will need to change their strategies to take advantage of the current market situation. In addition to investing in content and technology to improve the user experience, companies need to use appropriate delivery models to increase access. focus on providing integrated advertising solutions and offer innovative marketing formats to enhance the value proposition for advertisers,” said Kanchan Samtani, Managing Director and Senior Partner, Boston Consulting Group India. explained in detail.
Setting the tone for the years to come, Madhavan said: “Our industry has always been at the forefront of disruption and we will continue to innovate over the next decade. We will need new answers now and accelerate them at even the most fundamental.” Things like the talent pool to run our companies and the methodology to measure the impact we’re delivering to advertisers on our platforms.”
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