India's $12B digital media sector to triple by 2030: Redseer
Non-real money gaming and the increased uptake of OTT video have contributed majorly to the sector’s growth in the last two years, Redseer said.
India's digital media and entertainment sector, valued at $12 billion, is expected to triple by 2030 led by OTT, core gaming, and digital ad spending, Redseer Strategy Consultants said in a report.
Despite a slowdown in digital ad spending, the report said that non-real money gaming (RMG) and the increased uptake of OTT video have contributed majorly to the sector’s growth in the last two years.
According to , the key growth factors include a continued rise in paid users across OTT video, audio, and gaming; the emergence of regional content, and an increasing share of digital ad spend by new-age and traditional brands.
In FY23, the media and entertainment sector saw a 90% spike in the paid user base, but it faces challenges, including higher Customer Acquisition Costs (CAC) and low user retention. OTT video, OTT audio, and RMG, non-RMG segments saw an uptick in the paid user base.
"Typically, it takes 2 years for OTT Video platforms to break even on CACs for individual customers. Long-term solutions such as innovative monetisation models, localised and regional content for Tier-2+ demographics, and models such as keeping the first episode of original properties free could work in the favour of OTT platforms," Redseer said.
The gaming industry in India, boasting a 150 million strong community of mid-core/core gamers in 2023, is on the rise, according to the report. The transition from casual to mature gaming has led to a 40% paid user penetration.
"The levelling up of gamers from casual to mature gaming is also spurring an increase in the viewership of live streams and has opened multiple possibilities for the development of a vibrant domestic eSporting ecosystem," Redseer added.
Edited by Suman Singh