As India’s digital infrastructure grows, the country’s media and entertainment industry is reaping benefits from rising internet and smartphone penetration, reveals a FICCI-EY report, Re-imagining India’s M&E Sector. The surge in online video consumption has led to an increase in revenue from digital platforms, outpacing films and gaming in 2017. This growth is expected to remain strong in the coming years owing to the increasing adoption of OTT platforms and implementation of cable TV digitisation.
While digital media revenue is today driven by advertising, the report predicts that subscription revenue will grow to become a significant contributor over the next three years. Subscription revenue of OTT platforms is expected to increase 10x by 2020 with digital-only subscribers doubling over the next three years.
Smartphones are also aiding the growth of digital media. The percentage of video traffic to total mobile traffic is estimated to grow to 79% in 2020 from 40% in 2015. With media consumption shifting from traditional formats to digital platforms, media conglomerates are looking to ramp up their presence in the digital space. Currently, there are 30 OTT platforms in India, and even news and music-streaming platforms are making inroads into the digital space.
The low-cost data availability in 2017 pushed up subscriptions and consumption, and over the next few years, higher revenue is expected from digital platforms. The report sums up what is to come, “Tectonic shifts in content format, consumption trends, advertising techniques and consumer behaviour happening simultaneously will define arrival of a new age in digital — The Age of Combustible Growth.”