Executive Summary
The Media & Entertainment Industry is a sunrise sector of the Indian economy undergoing unprecedented growth by being at the cusp of rising consumer demand and improving digital revenues. India, being a developing nation, hoIds a lot of potential and is expected to reach INR 2.23 Iakh crores (i.e., US$ 30 billion approx.) by 2023 from INR 1.38 lakh crores (i.e., US$ 19 billion approx.) in 2020 at a CAGR of 17%.
The industry has been broadly categorized in the report based on avenues in which it is consumed such as —
| Media & Entertainment Subsectors (Sector size in INR hundred crores) | 2019 | 2020 | 2021 | Annual Growth Percentage (2020-21) |
| Television Industry | 787 | 685 | 760 | 11% |
| Cinema | 191 | 72 | 153 | 112% |
| Online Gaming, Animation & VFX | 160 | 130 | 173 | 33% |
| OTT Media services | 29 | 44 | 57 | 32% |
| Digital Advertisment | 192 | 192 | 234 | 22% |
| Print & Publishing | 296 | 190 | 237 | 25% |
| Out of Home Advertisment | 39 | 16 | 22 | 38% |
| Music & Radio | 46 | 30 | 41 | 39% |
Changes in demand patterns were registered across all areas of media as consumers had more time to try new things and thus, sought alternatives. As per the consumption trends, Indians spent in Average of 4.6 hours a day on their phones. Content created around escapism was most sought by the consumers. Internet penetration increased by 11% to reach 79.5 crores, of which 74.7 crores had broadband access (of which 72.5 crores are wireless broadband subscribers).
Insights from Industry Veterans
“The future of the entertainment industry will offer a world of opportunities, but the transformation will require a willingness to take bold and substantial steps. This Industry belongs to the millennials who are the hyper-connected customers of the digital age and pioneers of challenging the status quo and preconceived notions.”
Vaibhav Manek – KNAV, Co-Founder & Partner – Business Advisory Services
“As the frenzy grows, quietly grows the need for a method.. a set of rules to make sense of this burgeoning creative and financial phenomenon. With emerging technologies that are revolutionizing the M&E Industry such as Augmented Reality, Virtual Reality (VR), Artificial Intelligence, Automated Journalism and Blockchain, the sector is and will continue to be the jewel in the crown.”
Ameek Naik – Naik Naik & Company, Founding & Managing Partner
The recent integration of social media and digital payment methods marks a monumental shift in the way the banks look at the media industry. Banks are expected to holistically embrace the social media and its ability to leverage the consumer data for give better services while protecting data piracy.
Rajesh Gupta – SNG & Partners, Managing Partner
The digital media industry is growing exponentially, the magnitude by which consumer preferences are changing is unprecedented. The notion to constantly entertain and stay connected has never been as important as it is today. The revolution of extended reality is going to change the world in a way we have never imagined.COVID has accelerated the deal making activity in the media & technology space and it will continue to remain very intense in the next few years. The industry is going through a phase of consolidation, and you will see media giants turning into behemoths via mergers and acquisitions.
Parth Gandhi – Founder & Senior Partner, IMEF
Read the detailed report here: https://bit.ly/3fEqWCQ
About IMEF
IMEF is India’s first Alternative Investment Fund focused on Media and Entertainment sector with a highly experienced fund management team.
The fund is a SEBI (Security and Exchange Board of India) registered category-II AIF (Alternative Investment Fund), which brings highly organized, disciplined & transparent approach to investing in Media and Entertainment sector. We aim to provide bespoke capital solutions by using structured products. The fund is backed by a team with over 50 years of collective experience in the Indian Media and Entertainment Industry, with experience in fund management, research, and investments.
IMEF has proprietary sourcing and management prowess, and banks on a rigorous data-driven methodology, in executing deals for the fund and its investors. IMEF combines the mindsets of traditional banking and equity investing to create a balanced approach, producing superior risk-adjusted returns. IMEF will deliver downside protected investments with large uncapped equity upside to our investors.