Recent projections by Redseer highlight India’s burgeoning digital media and entertainment landscape, which is poised to triple its current valuation of $12 billion by 2030. The forecast indicates that by the close of this decade, India will outshine the USA in terms of mature internet users.
A breakdown of India’s current online demographic reveals a diverse user base: approximately 450–500 million are categorized as explorers, 300–320 million as transactors, and 35–40 million as mature users. These figures set the stage for a digital evolution, with Redseer underscoring the critical role of sectors like Non-real-money gaming (Non-RMG) and the expanding Over-The-Top (OTT) platforms in audio and video.
The research report emphasizes several growth catalysts propelling the industry forward. Key factors include the surge in paid subscriptions across OTT platforms, the rise of regional content, and a marked increase in digital ad expenditure by both modern and traditional brands.
FY23 witnessed a robust expansion in the media and entertainment sector, especially in terms of paid subscriptions and average revenue per paying user (ARPPU) across various niches. However, the report cautions about persistent challenges such as escalating customer acquisition costs (CAC) and retention issues.
To bolster profitability in the upcoming years, the report advocates for innovative strategies like subscription bundling and novel monetization models. Notably, the audio entertainment sector in India saw a remarkable 9X growth in FY23, fueled by a wider range of payment options and an expanding user base.
The gaming arena isn’t far behind, with core gaming, eSports, and live streaming fostering a vibrant community of 150 million mid-core gamers in 2023 alone. The report concludes on a positive note, highlighting the potential of in-game transactions for items like costumes and accessories, which present lucrative opportunities for the sector’s future.
