Presentation: Indian media and entertainment (M&E) industry has the potential to reach USD100 billion by 2025

Boston Consulting Group's report titled "Shaping the industry at a time of disruption - Taking Indian M&E industry towards a USD100 billion aspiration", which was released at the BCG-CII 4th Big Picture Summit, is based on an assessment of the industry over the past five years.

The BCG-CII 4th Big Picture Summit, held on October 19, focussed on the future of Indian media and entertainment. On the occasion, BCG released a report titled "Shaping the industry at a time of disruption - Taking Indian M&E industry towards a USD 100 billion aspiration". The report assesses the industry's progress over the past five years, which is growth at a stable 10 per cent year-on-year (YoY) and currently valued at INR 115,500 crore.

Commenting on the release of the report, Kanchan Samtani, partner and director at The Boston Consulting Group, says, "At the core of this optimism is the fact that the underlying Indian consumer trend is positive. Unlike mature Western markets, digital media could expand the overall market size by tapping into latent demand and driving new media consumption rather than merely replacing other, more traditional platforms."

According to Neeraj Aggarwal, managing director, The Boston Consulting Group - India, "To advance industry growth, India needs to establish itself as a global production hub and encourage higher investment in the M&E sector - from global and domestic players."

Some of the key findings of the study are:

1. CII-BCG Vision Paper pegs M&E sector potential to USD 100 Billion by 2025. This would imply growth to Rs 210-250,000 crore by 2020

2. The Indian M&E sector, which provides five million plus jobs, contributes to more than 1.7 per cent of India's GDP

3. New consumption behaviours will get created with always-on, on-the-go, on-demand and seamless pick-where-you-left models across multiple devices and time frames

4. With changing environment, India has the potential to emerge as a global M&E hub. Catch slogans such as 'Make in India' and 'Digital India' are strongly positioned to exploit such trends

The report also states that India has the world's third largest television viewership base after the US and China, the world's second largest print industry in terms of circulation, and produces the highest number of films worldwide (1,900 plus films per annum). The next decade, however, will be the decade of change, wherein there will be an interplay of five forces creating a tectonic shift which can potentially catapult the industry into the next orbit of growth. India is gearing for a consumption explosion.

New consumption behaviours will get created with always-on, on-the-go, on-demand and seamless pick-where-you-left models across multiple devices and time frames. The distinction between prime and non-prime time will become redundant due to these changing patterns and behaviours of online consumption. It will also create fragmented audiences. With the ever-increasing choice of content and the popularity of time-shifted and on-demand viewing, measuring viewer behaviour will become increasingly critical as it will facilitate targeted advertising. Further, there is a fast growing need for innovative and newer ad formats for effective monetisation.

Linear value chains of the past will collapse, accommodating new roles and new players. "This evolving ecosystem will create new winners and these winners will do three things differently. They will think big, leverage multiple monetisation models - adding up dimes to create dollars and invest heavily in content - for content will continue to be king," adds John Rose, senior partner at The Boston Consulting Group.