A recent report highlighted India's burgeoning digital media and entertainment industry, presently valued at $12 billion, with projections indicating a potential tripling in size.
Redseer Research underscored the sector's resilience amid market slowdowns, citing the maturing user base and increased digital media spending as key factors in its anticipated growth trajectory, despite recent dips in digital ad expenditures and other macro challenges.
The last couple of years have witnessed significant contributions to the sector's expansion from Non-Real Money Gaming (RMG) and the burgeoning adoption of OTT Video, compensating for the slowdown in digital ad spend.
Between FY22-23, all segments within Digital Media & Entertainment observed remarkable growth in paid users, with OTT audio leading the charge.
The report foresees the OTT Video sector achieving profitability within the next 3-5 years, contingent on overcoming challenges like high Customer Acquisition Cost (CAC) and lower user retention.
India's current internet user landscape boasts a dominant cohort of 450-500 million Explorers, followed by 300-320 million Transactors and 35-40 million Mature Users.
Projections suggest that India's volume of mature users will surpass that of the US by 2030, highlighting the nation's rapid digital evolution.
Furthermore, the research anticipates a robust community of 150 million mid-core/core gamers in India by 2023, a substantial portion of whom have transitioned from casual gameplay.
The report emphasized a noteworthy acceleration in the paid user base and Average Revenue Per Paying Users (ARPPU) across various Media & Entertainment segments in FY23 alone, showcasing a staggering 90% increase in paid user growth.
(With Agency Inputs)
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