India’s digital media and entertainment industry, presently valued at $12 billion, are poised to triple in size, as per a report on Wednesday. The landscape’s expansion is attributed to the increasing maturity of internet users and a surge in digital media spending, mitigating the recent market slowdown caused by a dip in digital ad expenditures and other macro challenges, according to a study by Redseer Research.
NON-RMG AND OTT VIDEO PROPEL GROWTH
Amidst Challenges” Over the last two years, the Non-Real Money Gaming (RMG) sector and the rising popularity of Over-The-Top (OTT) Video platforms have significantly contributed to the industry’s growth trajectory, countering the slowdown in digital ad spending.
PAID USER GROWTH ACROSS DIGITAL MEDIA & ENTERTAINMENT
Between FY22-23, all segments of Digital Media & Entertainment witnessed substantial paid user growth, with the OTT audio segment experiencing the highest surge. This indicates a shift towards more premium content consumption and an increasing willingness among users to pay for digital media services.
OTT VIDEO SECTOR EYEING PROFITABILITY
The report predicts that the OTT Video sector is poised to achieve profitability within the next 3-5 years, overcoming challenges such as higher Customer Acquisition Cost (CAC) and lower user retention. This optimistic outlook aligns with the sector’s resilience and adaptability.
INTERNET USER DEMOGRAPHICS AND GROWTH PROJECTIONS
India’s current internet user landscape is dominated by a massive cohort of 450-500 million Explorers, followed by 300-320 million Transactors and 35-40 million Mature Users. The research estimates that India’s volume of mature users will surpass that of the United States by 2030, reflecting the country’s rapid digital evolution.
SURGE IN GAMING COMMUNITY AND ACCELERATED PAID USER GROWTH
In 2023 alone, India anticipates a robust community of 150 million mid-core/core gamers, with a significant portion transitioning from casual gameplay.
The projected tripling of the industry’s size by 2030 is underpinned by resilient segments like OTT Video and Non-RMG, fostering a landscape where paid user growth and profitability are on an upward trajectory.
The Media & Entertainment landscape experienced accelerated growth in the paid user base, resulting in an impressive surge of 90% in FY23, enhancing the Average Revenue Per Paying Users (ARPPU).
As India’s digital media and entertainment sector navigate challenges and capitalize on the maturity of its user base, the outlook is remarkably optimistic.