New Delhi: The Indian media industry could grow over three-folds in the next 10 years and attain a size of Rs 650,000 crore (USD 100 billion) by 2025 on the back of factors like proper infrastructure support for digital media and enabling policy, says a report.
The industry has potential for year-on-year growth rate of 15-16 per cent and emerge as one of the largest employers contributing significantly to the Gross Domestic Product (GDP), the report by consulting firm BCG said.
The report has predicted that by 2020, every second Indian will have a personal media consumption device. India could potentially see a consumption explosion, by creating choices and reaching out to new consumer segments, it added.
"Given this backdrop, India can become the nerve centre for M&E activity globally with the added push of government's Make in India and Digital India initiatives," said a CII-BCG Vision paper.
The media industry is valued at Rs 115,500 crore at present and growing at a rate of 10 per cent annually. India has 250 million digital screens, including smart phones, tablets, laptops and PCs, which are more than the
number of TVs and film screens put together and these are projected to be 600 million by 2020, implying that every second Indian will have a personal media consumption device.
The report further said that driven by the momentum of growing consumption, economic progress, content innovation, addressability and segmentation, the industry could continue to grow at 12-13 per cent and would move to Rs 380,000 crore by 2025.
However, the industry can unlock significant value and growth if it creates differentiated content, which could help it to uncover new consumption and extract greater value from existing as well as new audience segments of digital media.
The new audience segments would expand the advertising pool also, it added. "Differentiated content would create additional value for consumers, advertisers and M&E players. As this value gets ploughed back to further enrich content quality it will create a virtuous cycle for growth," the report said.
"There is another scenario where growth is turbo-charged and the industry reaches Rs 500,000 crore by 2025 (growing at 15-16 per cent). Adding distribution revenue streams like broadband, this number could easily be greater than Rs 650,000 crore by 2025 asking the industry to the USD 100 billion mark."
The report also said that India needs to attract global investment and function with an enabling policy infrastructure. The government and the industry need to come together in a cohesive partnership to make this happen.