The digital media industry in India has arrived. E&Y, the global consultancy major, has forecast that the industry would set to touch the Rs. 200-billion mark by 2020, with the digital advertisement spend growing at 23-28 per cent. The number of smartphones would touch the 520-million mark by then, giving people access to the web.
“By 2017, the country will have more than 350 million smartphones from 167 million in 2015. Low-cost phones and roll out of 3G and 4G broadband infrastructure would drive access to the web. This, in turn, would drive digital media consumption,” E&Y has said in its latest report Future of Digital Content Consumption in India.
The Report was released here on Tuesday at the FICCI’s Media and Entertainment Business Conclave. The report has identified eight major trends in the digital media industry that are going to accelerate the growth. The trends include proliferation of smartphones, content, consumption by people in rural areas, digital gaming and regional e-celebrities.
The report, however, asked the media and entertainment companies to do much more than just reacting to the trends. “They need to be able to see emerging trends that will dictate the future of content and how they will impact established business models for ad-supported, subscription and pay-per-use content monetisation,” it said.
The companies and other stakeholders must develop much richer relationships with audiences. They will have to invest in technologies that will enable them to analyse audience data.
E&Y has said there would be a significant increase in broadband penetration. “It will go up to 40 per cent from 14 per cent. This will be instrumental in increase in media consumption, shifting beyond traditional media formats such as cable TV to digital media,” it said.