Mumbai: With the increasing large base of internet users, digital media in the country is expected to overtake film entertainment in 2019 and print by 2021 to reach USD 5.1 billion in 2021, according to a FICCI-EY report.
Film segment was valued at USD 2.5 billion in 2018 and estimated to be USD 2.8 billion in 2019, while print was valued at USD 4.4 billion in 2018 and estimated to reach USD 4.8 billion in 2021.
Digital media grew by 42 per cent in 2018, valued at USD 2.4 billion, it said noting that Indians spent 30 per cent of their phone time on entertainment.
It expects the digital medium to be USD 3.2 billion in 2019. India has the world’s second-highest number of internet users after China, with around 570 million internet subscribers, growing at a rate of 13 per cent annually.
There were 325 million online video viewers and 150 million audio streaming users in 2018.
It expects the country to have 30-35 million paying OTT video subscribers and 6-7 million paying audio subscribers by 2021.
The advertising led model was valued at USD 2.2 billion, while the subscription was valued at USD 0.2 billion in 2018.
By 2021, it estimates ad model to be USD 4.3 billion and the subscription model to be USD 0.8 billion.
“While watch time could grow 3 to 3.5x over the next five years, resulting in a massive inventory growth, advertising revenues will grow only around 2x. CPMs (cost per mile) will correspondingly fall during the period for non-premium inventory,” it said.
“During 2018-2021, growth will be driven by online gaming and digital media,” it said adding that TV will retain its pole position as the largest segment in terms of revenue.
Television grew at 12 per cent in 2018 to reach USD 10.6 billion and is estimated to be USD 13.7 billion by 2021.
“Indian broadcasters will continue to expand their global footprint. International revenues could reach 15 per cent of the topline by 2021,” it said.