Mumbai: Information and Broadcasting Minister Smriti Irani released a report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and Ernst & Young LLP at the inaugural session of the Ficci Frames 2018 showing that the Indian media and entertainment sector revenues reached $22.7 billion in 2017, and is expected to cross $31 billion by 2020, at a compound annual growth rate (CAGR) of 11.6 per cent, said a study released here Sunday.
"The media and entertainment sector continues to show great potential, and we expect it to grow on the back of India's need for escapism, knowledge and social acceptance. Media and entertainment has become a necessity of life, and provides exciting opportunities for existing and new companies."
The report also said the digital media will be a game changer.
Uday Shankar, Chairman, Ficci Media and Entertainment Committee, said the sector has become a "critical contributor to the economic and social narrative of the country".
"It generates millions of jobs directly and indirectly, contributes to economic growth with a rate almost twice the GDP and provides an immeasurable ancillary contribution by serving as a platform for the growth of several other industries," Shankar said.
"The future of the sector is getting built on three pillars - engineers, designers and storytellers," Shankar added.
As per the report, the reach of television increased to 64 per cent of the country, and with distribution now largely digitized, this has brought in more addressability. Bucking international trends, the print and radio segments continued to grow, as well as build their digital presence.
Indian films - both Hindi and regional - grew their international appeal with several doing well at the global box office.
It witnessed a growth of 27 per cent due to a combination of high growth in overseas theatrical releases, especially in China, growth in satellite rights values and domestic box office collections.
Increase in the demand for global content has also resulted in the growth of the animation, VFX and post production segment, where India has become known for its high quality and efficient capabilities.
Digital subscription and online gaming are showing signs of exponential growth, but on a small base.
The digital world is giving a boost to the overall sector.
"We estimate that there are around 1 to 1.5 million digital only consumers in India today, who would not normally use traditional media, and we expect this customer base to grow to around 4 million by 2020, and generate significant digital subscription revenues for the media and entertainment sector," read the report.
According to John Harrison, Global Media and Entertainment Leader - EY, "India's conducive regulatory environment and high volume of content consumption hold significant potential for foreign investments in the sector."