The theme of our report this year is 'monetisation strategies in the media sector'. Widespread technological advances and the digital experience has ushered in a new mindset to make business quicker, more targeted, experimental and collaborative. It has become imperative for emerging business models to move beyond digital innovation to customer engagement innovation to reap the benefits of digital transformation in India.
The Indian E&M industry generated 1,124 billion INR in revenue in 2013, an increase of 19% over the previous year. Television continues to be the largest segment, with strong subscription revenues. However, the increasing shift towards the digital medium has led internet access to overtake print as the second-largest segment. Gaming and radio, though relatively small, are emerging as potential gamechangers over the next five years.
The industry is expected to grow at a CAGR of 15% over the next five years, to reach 2,272 billion INR in 2018. While the television sector is expected to grow strongly at a CAGR of 15%, internet advertising and internet access are projected to be the fastest-growing segments, with a CAGR of 28% and 21%, respectively. Driven by the forthcoming Phase 3 auctions, the radio sector is also projected to grow strongly at a CAGR of 17%. The share of the music sector, though minor, is expected to grow at a healthy CAGR of 13%. With the rapidly increasing adoption of smartphones and tablets, the gaming sector is fast emerging as a promising source of revenue for the Indian E&M industry.
The bedrock of a strategy fit for a digital age is the digital mindset. This provides a solid plinth for a successful strategy. Companies must build on this by developing and exhibiting three behaviours: forging trust, confidence to move with speed and agility, and empowering innovation.