What the future of the media and entertainment industry will look like

The increased preference for personalized choices, two-way interactive media and snackable content appear to be some of the most palpable trends in the Indian media and entertainment (M&E) industry now. Keep in mind that consumers today can access content on any device, with a strong preference for regional and micro genres. M&E is increasingly addressing “ME” or personalized choices. Digital video and games contribute over 40% of total media consumption in 2022. These formats enable the transition from a ‘mass’ experience to an ‘individualised/ME’ experience. There is also a growing willingness to pay for premium/exclusive content. Subscriptions have grown 16-17 times over the past five years to reach 85-90 million in 2022. The report also predicts that SVoD will become more important in overall OTT revenue going forward.

All these facts and figures will need to be seen in the light of the fact that the Indian M&E industry is estimated to be worth $27-29 billion by the end of 2022 with 2/3 of the growth over the last 3 years or so coming from digital subsegments. The Indian M&E industry is expected to continue its unique multimodal growth story in the future as it is set to grow to USD 55-65 billion by 2030.

Following a recent study by the Confederation of Indian Industry (CII) and the Boston Consulting Group (BCG), when it comes to the relative proportion of revenues that come from advertising versus paid consumers, the share of advertising is now at 44% versus 37%. . percent in 2021. The report highlights that while advertisers are adopting diverse mediums; digital share has grown to nearly 40% in 2022 from 37% last year with digital native advertisers gaining prominence.

It’s not all. One has to look at the very real opportunity that is unlocked by adopting the Metaverse. Metaverse is projected to become a $10 billion opportunity by 2030. Currently, 36% of global private investment in Metaverse is in interactive entertainment. The interactive capability of Metaverse allows users to interact, socialize and collaborate in virtual spaces. In times to come, Metaverse, with its interactive and engaging features, could become ubiquitous as businesses strive to ensure customer adoption, engagement, and retention.

Moving forward, it will become critical for M&E firms to understand the imperatives that will help them seize opportunities in the Metaverse and unleash its true potential for the industry.

But how to unlock this potential of the Metaverse? Experts believe there are five dimensions to unlocking it: investing in technology and infrastructure, business model innovation, building a metaverse content production ecosystem, accelerating consumer adoption, and slapping regulation.

No wonder then that storytellers and content creators will have to reinvent their formats towards greater interactivity and democratized mediums. And media companies, for their part, will need to proactively think through their architecture as they build toward the metaverse. Today, you need to build agile, fungible systems so you don’t have to fix them later. The M&E industry has already evolved significantly and has seen rapid change fueled by innovation across the media value chain and evolving consumer behaviors. It’s “get ready and go” for the media and entertainment industry.