Snapshot

The Global Entertainer

Media is consumed by audiences across demographics and various avenues such as television, films, out-of-home (OOH), radio, animation, and visual effect (VFX), music, gaming, digital advertising, live events, filmed entertainment, and print. 

  • In 2024, television will make up 40% of the Indian media industry, 13% by print media, 12% by digital advertising, 9% by cinema, and 8% each by OTT and Gaming sectors.
  • The trajectory for the country’s digital revolution is expected to reach more than a billion users by 2028.
  • By 2024, Media & Entertainment industry is expected to reach $39 bn and a CAGR (2019-24) of 9%
  • The overall online video market for India is projected to grow at a CAGR of 26% between 2020 and 2025 to reach $4.5 bn in revenue over the next five years
  • OTT content cost may grow at a CAGR of 18% to reach $1.6 bn between 2020-2025
  • India holds the most potential of any market in the world and its breakneck rate of growth will see total OTT video revenue overtake South Korea, Germany and Australia to jump to be the 6th largest market in 2024
  • Accounting for 80% of the revenue, online gaming segment will drive enormous engagement and another addition of another 100 million smartphones and continued conversion of 2G and 3G connections to 4G will drive a 3X growth in this segment by 2022
  • Total pay-TV subscribers will expand from 127 million in 2020 to 134 million by 2025
  • eSports in India is witnessing levels of interest and excitement seen in other markets around the world. A huge millennial fanbase, coupled with the affordability of eSports streaming services and improved internet bandwidth is driving this growth

Up to 100% FDI allowed in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV, Headend-in-the-Sky Broadcasting Services

100% FDI is allowed in Publishing/ Printing of scientific and Technical magazines/ Speciality journals/ Periodicals under the government route

For further details, please refer FDI Policy

  • %

    TV industry revenue share

  • %

    Digital advertising’s contribution to total advertising

  • INR bn

    E-commerce advertising in 2020

Explore Related Sub Sectors

Second largest market by app downloads 

Fifth largest fantasy sports market

Second largest digital population

Industry Scenario

Indian M&E sector is expected to grow at a CAGR of 13.7% to reach $30.6 bn by 2023.

The Indian M&E industry is projected to grow at a pace of 14% over the period 2016-2021, outshining the global average of 4.2% CAGR, with advertising revenue expected to increase at a compounded Annual Growth Rate (CAGR) of 15.3% during the same period.

  • Television is expected to grow at a CAGR of 14.7% over the next five years as both advertisement and subscription revenues are projected to exhibit strong growth at 14.4% and 14.8% respectively.
  • Television, Print and Films are the largest segments constituting nearly 80% of the M&E market.
  • In 2020, digital channels of Prasar Bharati across DD and Akashvani have registered more than 100% growth, clocking over a billion digital views and over 6 billion digital watch minutes. 
  • The online video streaming platforms may become an INR 4000 crore revenue market by the end of 2025, according to reports. 
  • The online gaming industry is expected to grow at a compound annual growth rate (CAGR) of 40% to $2.8 bn by 2022, up from $1.1 bn in 2019. 
  • The AVGC sector is the fastest-growing sector, rising at a rate of 29% between 2019 and 2024, while the audiovisual and services sector is expanding at a rate of 25%. The Indian AVGC industry is expected to reach $43.93 bn by 2024.
  • OTT content investments in India touched $700 mn in 2020
  • India's pay-TV industry will grow at 7% CAGR between 2020-25 as total industry revenues, including subscription and advertising, reach $12.3 bn by 2025.

Government Initiatives

  • The Government of India has taken various initiatives such as digitizing the cable distribution sector to attract greater institutional funding, increasing the FDI limit from 74% to 100% in cable and direct-to-home (DTH) satellite platforms, and granting industry status to the film industry for easy access to institutional finance.
  • Film Facilitation Office (FFO) set up by the Ministry of Information & Broadcasting, Government of India, acts as a single window clearance and facilitation point for producers and production companies with a view to assist them in getting requisite filming permissions. 
  • The merger of Film Media Units in December 2020 by the Ministry of Information and Broadcasting under one corporation will lead to convergence of activities and resources and better coordination, thereby ensuring synergy and efficiency in achieving the mandate of each media unit. 
  • In September 2020, the Government of India announced its plans to develop an Animation, Visual Effects, Gaming and Comic (AVGC) Centre for Excellence in collaboration with IIT Bombay. 

GROWTH DRIVERS

  • Increasing young population

    385 million millennials in India accounting for 65% of total Indian population contribute to changing media consumption habits and evolving lifestyles

  • Internet Penetration

    Increased 11% to reach 795 mn

  • Digital Payments

    1497 Mn digital payment transactions in 2020 (5x growth in the amount)

  • Mobile Data Prices

    Most affordable in India ($0.09 per GB) as compared to US ($8 per GB) and UK ($1.39 per GB)

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FAQs

Frequently
Asked Questions

What is the penalty for not complying with the eligibility conditions?

In the event of the failure of any Letter of Intent (LoI) holder to comply with the eligibility conditions for the Grant of Permission Agreement or failing to sign the Grant of Permission Agreement within the prescribed period, the full deposit of the bid amount shall be forfeited without further notice, and Letter of Intent and the allocation of frequency, if any, shall stand cancelled.

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What is SACFA clearance and frequency allocation?

‘SACFA’ means the ‘Standing Advisory Committee on Radio Frequency Allocation‘ of the Wireless Planning & Co-ordination wing of Ministry of Communications & IT, Government of India.
‘Frequency Allocation’ means the specific Radio Frequency (RF) carrier with associated technical parameters such as RF power, bandwidth etc to the particular FM channel as assigned by the Wireless Planning & Co-ordination wing of Department of Telecommunication, Ministry of Communications & IT, Government of India.

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What is the eligibility criteria for getting permission of FM radio channel?

Only companies registered under the Company’s Act, 1956 are eligible for bidding and obtaining permission for FM radio channels. However, following types of companies are not eligible to apply:
a) Companies not incorporated in India.
b) Any company controlled by a person convicted of an offence involving moral turpitude or money laundering/drug trafficking, terrorist activities or declared as insolvent or applied for being declared insolvent.
c) A company which is an associate of/or controlled by a Trust, Society or Non Profit Organization.
d) A company controlled by or associated with a religious body.
e) A company controlled by or associated with a political body.
f) Any company which is functioning as an advertising agency, is an associate of an advertising agency or is controlled by an advertising agency or person associated with an advertising agency.
g) Subsidiary company of any applicant in the same City.
h) Holding company of any applicant in the same City.
i) Companies with the same management as that of an applicant in the same City.
j) More than one Inter-Connected Undertaking in the same City.
k) A company that has been debarred from taking part in the bidding process or its holding company or subsidiary or a company with the same management or an interconnected undertaking.
l) The defaulters of conditions under Phase-I & Phase-II, who have contested the revocation of their letters of Intent/License Agreements/Bank Guarantees, thereby continue to be debarred from participating in any future bidding process.

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What is the overview of the media and entertainment sector in India and the performance of this sector in recent times?

The Indian Media and Entertainment sector is valued at approximately $ 12 bn in 2015 and expected to double by 2020. Out of the various sub sectors, one of the highest growing sub-sectors would be digital advertising with a CAGR of 30%. Further, India is known to have the second largest TV market in the world.
The performance of the sector can be found in the achievement report at the following link. 

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Is the government proposing to create a regulatory agency for television broadcasters?

In 2006, the government had prepared a Draft Broadcasting Services Regulation Bill, 2006. The bill made it mandatory to seek license for broadcasting any television or radio channel or program.
It also provides standards for regulation of content. It is the duty of the body to ensure compliance with guidelines issued under the bill.

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