Complete digitisation of India is still a few years away, states PwC’s recently released report titled ‘Global Entertainment and Media Outlook 2017–2021’. According to the report, internet advertising is one of the most promising sectors for industry enthusiasts. With a growth rate of 18.6% till 2021, the sector can open up a lot of opportunities. However, full digitisation of India is a distant reality, considering the factors for the country’s slow adoption rates for online mediums.
The report also forecasts that India's entertainment and media industry could clock over INR 2,90,000 crore by 2021, given its advantage of being one of the fastest growing markets despite being the least digitised among the 54 markets covered by the report. “The E&M market of India needs to be nurtured as we have the growth potential, which will take us to the eighth or ninth position by 2021,” says Frank D’souza, Partner and Leader, Entertainment & Media, PwC India.
A macro challenge pointed out by the report is that the E&M industry is facing a significant level of uncertainty concerning the speed of change in areas such as 5G networks, Internet of things (IoT), virtual reality, and IPv6 protocols and the viability of business models surrounding these technologies. “When infrastructure channels open up a little more, enterprise businesses start depending on internet and technology starts validating itself through IoT. That is when life will start being dependent on the internet and we will actually reach that stage of digitisation,” says Suveer Bajaj, Co-founder and Director, Foxymoron.
Gautam Mehra, Social Media Head, iProspect Communications, voiced a similar opinion. “The market is growing 17%–20% year-on-year if you look at the spend but our base is not more than 7% of all the spend. We are still a few years away from what a developed market is,” he explains.
Speaking about the Asian markets, China and India represented the most populous ones by the report and are said to hold vast potential. It was also pointed out that the internet usage in India is an overwhelmingly mobile phenomenon and only 8% of data traffic in India will course through broadband in 2021. Sanjay Mehta, Joint CEO, Social Wavelength, feels that this growth is just a matter of time. “The internet market is INR 6,000 crore industry now. It has tremendous potential and is already delivering and will continue to grow,” he opines.