According to the FICCI-E&Y report 2018, the digital media user base will reach 4 million by the 2020, generating significant digital subscription revenues of approximately Rs 20 billion.
As per report, there are 1-1.5 million digital-only customers in India in 2017. The total paid TV + digital subscriber base stands at 6 million which is expected to jump to 20 million by 2020.
The report said that the mass consumers which includes pay and free TV + digital subscribers is 200 million. The same is projected to cross 500+ million by 2020.
The Indian M&E sector reached almost Rs. 1.5 trillion ($22.7 billion) in 2017, a growth of around 13% over 2016. With its current trajectory, it is expected to cross Rs. 2 trillion ($31 billion) by 2020, at a CAGR of 11.6%.
The report added that the digital segment led growth, demonstrating that advertising budgets are in line with the changing content consumption patterns. The micropayments, enabled through the Unified Payment Interface (UPI) and Bharat Interface for Money (BHIM) platforms developed by the National Payments Corporation of India (NPCI) will further accelerate subscription revenues for entertainment content.
The TV industry grew from Rs. 594 billion to Rs. 660 billion in 2017, a growth of 11.2% (9.8% net of taxes).
According to M&E leader Farokh Balsara, “Indian M&E sector reached INR1.5 trillion in 2017 led by digital. With digital subscribers expected to reach 20 million by 2020, has Indian M&E reached its digital tipping point? We now need to re-imagine the future of Indian M&E sector.”
The report talked about TV industry and said that the industry grew from INR594 billion to INR660 billion in 2017, a growth of 11.2% (9.8% net of taxes). Advertising grew to Rs. 267 billion while distribution grew to INR393 billion. Advertising comprised 40% of revenues, while distribution was 60% of total revenues. At a broadcaster level, however, subscription revenues (including international subscription) made up approximately 28% of revenues.
The TV advertising is 41% of the total revenues today and the report expects it to grow to 43% by 2020. There are over 30% households in India which are yet to get television screens, but being at the bottom of the pyramid, these households will tend to move towards first towards free and sachet products.
Digital media has grown significantly over the past few years, and continues to lead the growth charts on advertising. Subscription revenues are emerging and are expected to make their presence felt by 2020. In 2017, digital media grew 29.4% (27.8% net of the impact of GST) on the back of a 28.8% growth in advertising and a 50% growth in subscription. Subscription, which was just 3.3% of total digital revenues in 2016, is expected to grow to 9% by 2020.
While 250 million people viewed videos online in 2017, it is expected to double to 500 million by 2020. Around 40% of total mobile traffic came from the consumption of video services in 2015. This figure is expected to touch 72% by 2020. 93% of time spent on digital videos is in Hindi and other regional languages.
The report said that OTT subscription in India is expected to touch INR20 billion by 2020.
Source: http://cablequest.org/index.php/news/national-news/item/12306-tv-advertising-to-grow-43-by-2020-digital-media-user-base-to-reach-4-million-by-2020-ficci-e-y-report
The report said that the mass consumers which includes pay and free TV + digital subscribers is 200 million. The same is projected to cross 500+ million by 2020.
The Indian M&E sector reached almost Rs. 1.5 trillion ($22.7 billion) in 2017, a growth of around 13% over 2016. With its current trajectory, it is expected to cross Rs. 2 trillion ($31 billion) by 2020, at a CAGR of 11.6%.
The report added that the digital segment led growth, demonstrating that advertising budgets are in line with the changing content consumption patterns. The micropayments, enabled through the Unified Payment Interface (UPI) and Bharat Interface for Money (BHIM) platforms developed by the National Payments Corporation of India (NPCI) will further accelerate subscription revenues for entertainment content.
The TV industry grew from Rs. 594 billion to Rs. 660 billion in 2017, a growth of 11.2% (9.8% net of taxes).
According to M&E leader Farokh Balsara, “Indian M&E sector reached INR1.5 trillion in 2017 led by digital. With digital subscribers expected to reach 20 million by 2020, has Indian M&E reached its digital tipping point? We now need to re-imagine the future of Indian M&E sector.”
The report talked about TV industry and said that the industry grew from INR594 billion to INR660 billion in 2017, a growth of 11.2% (9.8% net of taxes). Advertising grew to Rs. 267 billion while distribution grew to INR393 billion. Advertising comprised 40% of revenues, while distribution was 60% of total revenues. At a broadcaster level, however, subscription revenues (including international subscription) made up approximately 28% of revenues.
The TV advertising is 41% of the total revenues today and the report expects it to grow to 43% by 2020. There are over 30% households in India which are yet to get television screens, but being at the bottom of the pyramid, these households will tend to move towards first towards free and sachet products.
Digital media has grown significantly over the past few years, and continues to lead the growth charts on advertising. Subscription revenues are emerging and are expected to make their presence felt by 2020. In 2017, digital media grew 29.4% (27.8% net of the impact of GST) on the back of a 28.8% growth in advertising and a 50% growth in subscription. Subscription, which was just 3.3% of total digital revenues in 2016, is expected to grow to 9% by 2020.
While 250 million people viewed videos online in 2017, it is expected to double to 500 million by 2020. Around 40% of total mobile traffic came from the consumption of video services in 2015. This figure is expected to touch 72% by 2020. 93% of time spent on digital videos is in Hindi and other regional languages.
The report said that OTT subscription in India is expected to touch INR20 billion by 2020.
Source: http://cablequest.org/index.php/news/national-news/item/12306-tv-advertising-to-grow-43-by-2020-digital-media-user-base-to-reach-4-million-by-2020-ficci-e-y-report
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