India has rapidly become one of the most sought-after markets in the world. Colossal international brands, platforms, companies, and businesses have been clamouring for access for years, and now, the early movers are reaping the benefits. Now, India is about to become the third-largest consumer market in the world by 2030, set to grow from $1.5 trillion to $6 trillion over the next eight years. Talent is also being found across the board, with major companies recognising the need to pander to the Indian public.
Ajit Mohan – formerly the CEO of Hotstar – being appointed the managing director of Facebook’s operations in India is a fine example of this, and he comes from one of the most exciting industries of growth in the country: entertainment. Set to be a large piece of the consumer market now and in the future, it’s already clear to see the sectors that are propelling the growth.
$21 Billion Going On $31 Billion
India’s entertainment industry is already colossal. In 2021, it clocked in at $21.5 billion, already marking growth in excess of 16 per cent during last year. Of course, this was still somewhat of a dip in 2019 numbers, but this looks set to be repaired by the end of this year. Showing an anticipated 17 per cent in growth, 2022 looks to reveal a $25 billion entertainment industry in India.
Just two years down the line, a slightly reduced compound annual growth rate looks to still carry the industry to the almighty height of $31 billion. Looking further, the industry is set to hit between $55 billion and $70 billion by 2030, with the biggest drivers being a combination of traditional and much more modern platforms. Television households are expected to continue to grow, but so too are the likes of mobile and online platforms, which, by comparison, are relatively new drivers of the industry.
Smartphones Unlocking The Entertainment Consumer Base
The key tech that has been powering the Indian entertainment industry to new heights is, undoubtedly, the smartphone. In 2010, reports of huge upticks in smartphone sales across India continued to build up with each passing quarter, with over 155 million units sold that year. Now, there are some 750 million smartphone users, which should grow to one billion over the next four years.
A key driver has been the number of companies willing to sell rather strong devices for low prices to compete in the ever-growing market. The likes of Xiaomi, Realme, Samsung, Oppo, and Vivo stand as the market leaders, but some 24 per cent of the market is comprised of other brands as well. It’s not just the device manufacturers that are willing to go big on being appealing to compete, with Reliance Jio releasing new plans that bundle in a Hotstar VIP subscription for free.
It’s a major play as it comes with coverage of the IPL as a complementary addition. Still, it gets more people into the mobile entertainment ecosystem, bolstering it further. This surge in smartphone usage also explains why whole libraries of slot titles for real money have been optimised for mobile devices. From classics like Thunderstruck II to newer hits like Assassin Moon, the slots run smoothly on popular devices in India.
Of course, with touchscreen controls, the games have become even easier to play, but mobile controls have rarely proven to be a barrier in India. Just take the smash-hit mobile video game Battlegrounds Mobile India. As a shooter, it requires fast reactions and touch-analogue controls. This would put off many players in other markets accustomed to console controllers, but in India, it had 16 million daily active users in the summer of 2021.
Watching Videos Will Continue To Be The Biggest Draw
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If there’s one part of online entertainment that India has embraced in its droves, it’s videos. It was found that nearly two-thirds of mobile users watch videos on their devices, and as a result, video ads have become a key area for marketing. Further, short-form videos – like those on Maj, TakaTak, and YouTube Shorts – are set to have some 650 million users in reach across the country by 2025.
It’s not just a vast population checking out some videos, though. Nearly 40 per cent of respondents watch six or more hours of online videos each week. As you would assume, the chief sector for this in the entertainment industry is that of over-the-top (OTT) media services. This corner alone is set to hit total revenue of $4.5 billion in 2026, up to $2.6 billion from last year. There are several players in this field, from the video platform that comes with Prime’s subscription to the likes of Hotstar, Voot, and SonyLIV. The market may be vast, but all players have had to toe a tightrope of price points.
India’s entertainment industry continues to surge, and as more television sets and smartphones come into play, the market will only continue to grow.
