Industry
Charting the course: Seven trends shaping the media landscape
Summary
In the next couple of years, India’s media consumption is set to grow even more digital, driven by subscriptions, and by regional languagesJioCinema, which debuted this year as the official streaming platform of the Indian Premier League, got 32 million concurrent views for the final match last month. This figure, a likely record for a live event, marks a big moment for India’s over-the-top (OTT) streaming revolution. This medium will likely lead India’s media and entertainment industry into the coming years as high-speed internet reaches more citizens. In the next couple of years, India’s media consumption is set to grow even more digital, driven by subscriptions, and by regional languages. Yet, expect legacy platforms to be able to hold some ground. Mint explores the trends that are shaping the industry.
Digital dominance
India’s digital media will be worth around ₹86,200 crore by 2025, upstaging television for the first time to become the largest media segment by revenue, this year’s Ficci-EY sector report said. Television will see tepid growth, reaching an estimated 200 million households by 2025, up 14% from 2022 thanks to lower costs and easy availability. But internet-based devices will give it tough competition. Meanwhile, cinemas have recovered from the crippling blow of the covid-19 pandemic. Even the legacy medium of print is staging a comeback, albeit slower, and will remain the third biggest segment by 2025.
Subscription vs advertising
Last year saw a major landmark for video streaming in India. For the first time, the subscription-based video-on-demand medium, which includes platforms such as Netflix and Disney+ Hotstar, was expected to have overtaken the conventional advertisement-based services in terms of revenue, a BCG report estimated in November 2022. The OTT segment as a whole is likely to grow at a rate of 20-23% in this decade, with the share of subscription-based mode reaching 55-60% by 2030.
Untapped potential
Despite all the buzz, over 150 million households in India are without access to either television or OTT. These homes offer massive expansion opportunities for the industry. Nearly two-thirds of the short-video users were based in non-metro cities, with an average individual spending over 33 minutes per day on short-video apps, the Ficci-EY report said. However, as internet speeds increase, experiential content such as gaming, Metaverse, cinemas and events, will also gain popularity.
Experiential future?
Internet speeds play a crucial role in how information is created and consumed. While 4G enabled viewers to become creators, high 5G speeds will enable more content creators to go live instantly and effortlessly transition from physical to virtual. Gaming and e-commerce are likely to lead the growth of Metaversefrom a global spending of $45 billion in 2022 to $490 billion in 2030.
Regional beats
Demand for regional content on OTT platforms is rising fast. Nearly 35% of all viewers watched regional language content on OTT platforms in 2022, the BCG report said. The share of such content is set to increase to more than 60% in two years’ time. Vernacular languages are also becoming popular among consumers of news and sports commentary. Over one-third of the music audience in India prefer regional language-based content.
Free music to stay
The market for streaming paid music in India is limited, yet growing. Over 80% of users in India are unlikely to pay for music. Only 3-5% users could pay for music streaming and music experiences like concerts. From 4-5 million, the number of music streaming subscribers will likely grow to 8 million by 2025. Experts predict the OTT segment to contribute nearly 500-600 songs annually by 2025. As internet adoption in other South Asian countries picks pace, the consumption of Indian music is also likely to grow in these markets.
