Bolstered by c
hanging consumer preferences, evolving media delivery platforms, new business models, increased competition and favorable regulations, the Indian media and entertainment (M&E) market has matured immensely over the last decade. The current trend of increased consumption in Tier II and Tier III cities is creating even more opportunities for the industry. In tune with the rising media access and abundant availability of digital devices, the industry is shifting its marketing and delivery platforms to cater to focused segments.
India’s M&E industry is expected to reach INR 1,676 billion by 2017, growing from INR 821 billion in 2012. This digitization process may take longer than anticipated, but once in place, it will change the face of Indian media. All the stake-holders along its value chain will benefit from it.
The animation and visual effects (VFX) segment within the M&E industry is looking quite positive.
VFX has shown tremendous growth from doing mainly pre- and post-production jobs procured from overseas to serving films, television and commercials with world-class content. In the coming years, India animation studios will develop content to cater to global consumers via digital platforms such as Apple iTunes, Android, Netflix and Windows. The animation and VFX market is driven by growth in the children’s television genre and visual effects in movies. A large part of the revenue is contributed by these two segments. A significant rise in penetration of personal computers and mobile phones has also helped in accelerating the industry. Animation production houses in India are not only involved in outsourced post-production work, but also conversion of 2D to 3D. This segment is showing great potential and with support from the government, it is expected to flourish.
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