The most ubiquitous form of media consumption will come in the form of OTT subscription services such as Netflix or Hotstar.
According to PwC’s Global Entertainment and Media (E&M) Outlook 2018-22, the valuation of the Indian E&M industry will hit Rs 3.5 lakh crore in 2022. The most ubiquitous form of media consumption will come in the form of OTT subscription services such as Netflix or Hotstar.
These subscription services made up 70% of the revenue of the OTT market, and will increase in importance to the market, comprising a predicted 79.4% revenue share of the market by 2022. With domestic video-on-demand platforms such as Balaji Telefilms’ ALTBalaji and Sony’s SonyLIV expanding and more coming up, consumers will be spoilt for choice when it comes to making a decision between all the available subscription services.
Consumers will also get a wide variety in cinema. The sector is expected to grow at a 9.4% compounded annual rate over the four-year forecast period. However, one might have to pay a higher price for the same, as the average ticket price is predicted to increase to Rs 78 in 2022, from Rs 55 in 2017.
The main engine of growth for this sector is expected to be the digital screen component, as the number of digitised screens is predicted to rise by more than 50% to 5,532 screens in 2022, up from 3,524 in 2017. M&E consumption will largely be driven by rapidly expanding mobile phone penetration—the report notes that 850 million people will have access to a mobile data connection in the country by 2022.
More people will thus be accessing the internet at faster speeds. A testimony of the growth potential of mobile-based entertainment is the fact that mobile video advertising is the fastest-growing internet advertising sub-segment in India.