Future of multi-sided platforms in media and entertainment industry

Abstract

India Media & Entertainment industry with its growth rate of 9.2 per cent in 2016 is a bright spot in the Indian economy. It has been growing at an encouraging rate of 11.6% on average over the past five years. (Exhibit 1) This positive growth in the Indian M&E industry is driven by strong growth in advertising revenues which grew 11.2 per cent.(Exhibit 2) Television revenues have been hit due to less subscription revenues. The biggest trend in this space has been the increase in digitization and internet consumption which is slowly becoming the main platform for media consumption for some consumers. All the players have had to introspect and rethink their media strategy to remain competitive and capture higher value in the value chain. Amidst these challenging times where players are contemplating the right business model, mobile phones and technology have made deep in-roads to the average Indian households and with the upward trend in digitization and internet access, it could disrupt the traditional value chain in this industry.