Deloitte's 2016 Outlook, for the Media and Entertainment Sector, from the desk of Ashesh Jani, partner, Deloitte Haskins & Sells LLP.
According to Deloitte, the media and entertainment sector has been growing rapidly over the years, with 10 per cent annual growth been recorded within the sector over the past five years.
The report goes on to say that while some segments within the media and entertainment sector have been growing rapidly, others have grown at a comparatively steady pace. The report lists television, advertising, social media, print, film, radio, music, gaming, animation, and OOH as the various sub-segments within the media and entertainment sector.
Another finding by Deloitte pertains to traffic on mobile platforms being driven by social media sites, owing to the fact that a considerable population in India is active on social media. According to the report, mobile advertising through various apps and mobile sites is gaining traction.
The report also mentions that apps have the ability to do everything that websites can, but in a more intuitive and a convenient way, a factor that contributes towards their popularity.
Another interesting factor that emerged was that social media app downloads among 35-65 year-olds are on the rise. Moreover, according to Deloitte, stakeholders are analysing the user/customer behaviour on the web, following which they are targeting and customising the advertisement content.
In addition to this, there has been a rising, noticeable trend of using videos for advertising purposes, as they are believed to be more effective.
The report from Deloitte also mentions about the contribution of television and print media towards generating advertising revenue. According to the report, an increasing growth trend is expected from television and print media in the future, too. The report also mentions about the improvement in customer experience brought about by digitisation, owing to which viewing quality has become better. Segmentation of television content has also been made possible as a result of digitisation. Regional channels are witnessing a rapid growth.
On the other hand, print media as an industry, including national, as well as regional players, continues to be a fragmented one. Campaigns like Make in India and Swacch Bharat have spent huge amounts of money on print advertising; And, regional editions of print media have seen steady growth.
According to Deloitte, out-of-home (OOH) advertising like those at airports, malls and metro stations has grown in prominence. Also, digitised hoardings have given a new look to the traditional OOH platforms. According to the report, centralised feeds and monitoring of eyeballs can help specific target campaigns, propelling further the growth in OOH.
The report also states that the Indian film industry is the largest producer of films globally. Radio too, has witnessed considerable growth, which has also been a result of radio advertising by e-commerce players. Prime Minister Narendra Modi's address to the nation through the programme Mann Ki Baat, has also contributed to the medium being noticed by many, says the report.
The report says that India's recorded music business is expected to almost double in size, in the next five years. Also, the report expects the number of music apps and streaming apps to rise across the mobile platform, over the next few years. And, due to the mass availability of smart phones in the country, the gaming segment has grown considerably.
The VFX industry too, as per the report, has made its presence felt across all segments, whether it is films, television, or advertisements. Local animation content is being increasingly demanded over the past few years, with shows like Hanuman, Chota Bheem and Pakdam Pakdai being immensely popular among the younger generation.