The increasing preference for personalized choices, two-way interactive media and snacking content seem to be some of the most noticeable trends in the Indian media and entertainment (M&E) industry right now. Consider that consumers today can access content from any device, with a strong preference for regional and micro-genres. M&E is increasingly oriented towards “ME” or personalized decisions. Digital videos and games will account for more than 40 percent of all media consumption in 2022. These formats allow for the transition from a “mass” to an “individualized/ME” experience. The willingness to pay for premium/exclusive content is also increasing. Subscriptions have grown 16-17x over the past five years to reach 85-90 million in 2022. The report also anticipates that SVoD will become a more important part of overall OTT revenue in the future.
All these facts and figures need to be viewed against the background of the fact that the Indian M&E industry is estimated to be worth US$27-29 billion by the end of 2022, with a growth of 2/3 in the last 3 years or so. come from the digital sub-segments. The Indian M&E industry is expected to continue its unique multi-modal growth story in the future as it is poised to grow to US$55-65 billion by 2030.
According to a recent study by the Confederation of Indian Industry (CII) and the Boston Consulting Group (BCG), when it comes to the relative share of revenue from advertising versus consumer-paid revenue, advertising is now at 44 percent versus 37 percent in the past Year 2021. The report highlights that while advertisers are employing diversified media; The digital share has increased from 37 percent last year to nearly 40 percent in 2022, with digital native advertisers gaining prominence.
That’s not all. You have to look at the real opportunity unlocked by the introduction of the Metaverse. It is estimated that Metaverse will become a $10 billion opportunity by 2030. Currently, interactive entertainment accounts for 36 percent of global private investment in Metaverse. Metaverse’s interactive capability allows users to interact, socialize, and collaborate in virtual spaces. In the time ahead, Metaverse, with its interactive and immersive capabilities, could become ubiquitous as companies strive to ensure customer adoption, engagement, and retention.
Going forward, it will be critical for M&E companies to understand the imperatives that will help them seize opportunities in the metaverse and realize their true potential for the industry.
But how do you unleash this potential of Metaverse? Experts believe there are five dimensions to achieving this: investing in technology and infrastructure, business model innovation, building a metaverse ecosystem for content production, accelerating consumer adoption, and codifying regulations.
No wonder, then, that storytellers and content creators have to reinvent their formats towards more interactivity and democratized media. And media companies, for their part, must proactively think through their architecture as they work toward the metaverse. You have to build systems today that are agile and fungible so that you don’t have to fix them later. The M&E industry has already evolved significantly and experienced rapid changes driven by innovation across the media value chain and changing consumer behavior. It’s “set and go” for the media and entertainment industry.