With the advent of internet in every household in India, people have now become inclined towards internet for most of their uses. Internet has also proven to be their source of entertainment and through various means like OTT platforms, content creation platforms, social media etc., people the Internet comes as a dominating aspect of the entertainment industry. The revenue share for media companies aree already increasing day-by-day from this aspect and it will touch records in near future.
As per Crisil Ratings Analysis of 20 companies, which account for the 55% of the revenue of media industry; it was found that by the closing of financial year of 2027, about 18% of the total revenue of the companies will come from digital sources. Currently the share stands at 12% compared to the 2019 standing of only 9%. This means in near future the media companies will see a never before seen acceleration in their profits from digital sources.
The increased profits from the digital sources will make the media companies focus more on digital markets. This will result in more investments in the field. This will also lead to an accelerated growth of the digital market. For the last five years, the sector saw a Compounded Annual Growth (CAGR) of 5% in the digital space which will close the fiscal 2024 with a revenue if 47000 crores. Due to the increased investments and more emphasis on the digital sources, we will see an increased CAGR of 8% in the next two fiscals with the revenue reaching a figure of staggering 60000 crores.
This acceleration in the growth rate will be achieved by the shifts of media companies towards the more recent and more versatile digital market. The digital space is slowly becoming the dominant player of the entertainment industry and with the increased revenue it is certain that the space will observe more investments and focus on the field. Already the online platforms are receiving more audience everyday. Sports are being streamed online, films and shows being watched on OTT and recreation being done through social media. With the increased investment, the popularity of digital media will be like never seen before and soon it will have overtaken the traditional entertainment spaces.