Redseer predicts India’s digital media industry to surge threefold to $12 billion by 2030
- ByStartupStory | December 20, 2023
India’s digital media and entertainment sector, currently valued at $12 billion, is anticipated to triple in size by 2030, surpassing the USA in mature internet users, according to Redseer’s projections. Redseer’s research suggests that India’s landscape will witness a surge in mature internet users, outpacing the current status of the USA by the end of this decade.
The current internet user base in India is segmented into explorers, transactors, and mature users, with Redseer estimating figures of 450–500 million explorers, 300–320 million transactors, and 35–40 million mature users.
Redseer’s report highlights the significant factors contributing to the industry’s growth trajectory. “Non-real-money gaming (Non-RMG) and the rise of OTT across audio and video are among the contributors to the sector’s current growth trajectory,” despite challenges like digital ad spending slowdown and regulatory shifts affecting the RMG space.
The report outlines key growth catalysts for the sector, emphasizing the increase of paid users across OTT video, audio, and gaming, the prominence of regional content, and the expanding share of digital ad spend across both modern and traditional brands.
The media and entertainment sector witnessed substantial growth in FY23, particularly in paid user bases and average revenue per paying user (ARPPU) across various segments. “Despite a 90 per cent increase in paid user growth, challenges persist with higher customer acquisition costs (CAC) and low user retention,” the report states.
Innovative solutions such as subscription bundling and creative monetization models are deemed crucial by the report to ensure sector profitability in the next 3–5 years. Additionally, India’s audio series and audiobooks observed a 9X growth in FY23, driven by expanding paid user bases and diverse payment options.
Furthermore, the rise of core gaming, eSports, and live streaming has cultivated a community of 150 million mid-core gamers in 2023. “With 40 percent paid user penetration in the gaming segment, in-game payments for costumes and accessories are opening new avenues,” the report adds.
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