New Delhi [India], Oct 5 (ANI-NewsVoir): Indian media and entertainment industry is one of the largest content producers in the world. Films, print and television have been major contributors to the industry. Over the last decade, increased digitization and internet usage have resulted in growth of the sector.
With technological advances, online content like games, video/audio and other user-generated content have become easily available. There is a growing demand in the video streaming space for Over-the-Top (OTT) and Video-on-Demand (VOD) services.
The industry has evolved from being a single to multi-platform content delivery network. A significant change has been brought about with digitisation (digital STBs and DTH connections), access to compatible multimedia devices, like smartphones and tablets and expansion of 3G/4G network. As streaming gains popularity in India, many start-ups are emerging in the arena. Some of the well-known platforms that have entered the market include YouTube, Amazon Prime, Netflix, Hotstar, Hooq, Voot, ALT, Eros Now, Ditto, Zee Entertainment Now, Sony Liv, Yupp TV and Apple TV. The industry is also witnessing exclusive content arrangements between OTT players and studios. Originals produced in-house by studios, including licensed videos leased from other production and distribution houses, are available for viewing.
According to TRAI, as at June 2017 total wireless subscribers (GSM, CDMA & LTE) were 1,186.84 million. Broadband subscribers increased to 300.84 million.
In April 2017, as per COAI, India had 935 million mobile phone subscribers.
In the last 5 years, the data component of an average mobile bill has increased from 45% to 65%. As per the Nokia MBiT Index report 2017, in the metropolitan cities 55% mobile subscribes had a 3G and 20% had a 4G compatible device.
According to the Ericsson Mobility Report 2017, average data consumed by an Indian smartphone user is likely to increase to 11GB per month by 2022. The free hi-speed 4G internet service offered by Jio has increased the number of internet users to over 70 million.
On August 28, 2016 the Government announced FDI Policy for various sectors including media sector. 100% FDI (up from 49%) is permitted under automatic route in broadcasting carriage services like teleports, DTH, cable networks, mobile TV and head end-in-the sky.
The Digital India and Smart City campaign to increase internet penetration in smaller cities, thereby strengthening industries such as video streaming, online music services and gaming in India.
To set up a Centre of Excellence for skilling to enhance talent in the digital field.
To fund select movies that would represent India in foreign film festivals.
Dekkho, an online video streaming platform run by Baadl Technologies Pvt. Ltd., raised US$1.2 million in a seed round from seven investors to scale its technology infrastructure and invest in content licensing.
Balaji Telefilms Ltd raised US$22 million for its OTT venture, ALT Digital Media from Atyant Capital India Fund I, Vanderbilt University, GHI LTP Ltd., GHI HSP Ltd and GHI ERP Ltd.
Reliance Entertainment and DreamWorks, along with Participant Media and Entertainment One, formed a new film, television and digital content creation company called Amblin Partners, and raised US$500 million in debt to develop and produce films.
ScoopWhoop, a digital media and content startup, raised US$4 million from Kalaari Capital for expansion of its video production unit, ScoopWhoop Talkies.
NDTV Convergence signed a deal worth US$15 million with content discovery platform Taboola.
Apple joined Netflix and Amazon in race to acquire film and music library from Eros.
According to the report 'Indian Media and Entertainment Industry 2015,' the combined market size of the industry will be US$30 billion by 2019 with growth largely driven by content, digitisation and higher penetration of multimedia devices. Video streaming is expected to account for 75% of total mobile data traffic in 2020, up from 51% in 2015.
Many media companies and content players have collaborated and partnered to reach out to a bigger market. Telcos are keen to setup audio and video libraries for potential users. Investment in content curation for digital platforms offers opportunities to develop the market. (ANI-NewsVoir)