The entertainment industry has enormously digitalized generating a phenomenal impact on how the Indian media and entertainment (M&E) industry is being perceived by its people in recent times, the industry is soaring ahead at an unbelievable pace. The industry grew at a healthy rate of 13.4% even surpassing the GDP growth rate and reached INR 1.76 trillion in 2018. The growth is poised to reach INR 2.35 trillion by 2021.
The upsurge in consumer demand, digitalization and expansion in entertainment avenues in terms of growing online entertainment and live media streaming channels, and increasing audience for television, OTT platform, higher consumption of print media, rise in the number of silver screens, etc. has propelled the M&E sector to break past boundaries and make giant leaps over the last decade. A vertical rise in advertisement revenues have also been the reason behind its astonishing success. Emergence of internet as a medium of mainstream communication has been a revolution to Indian entertainment sector. Several initiatives by the Indian government such as easier institutional finance for films, digitization of cable network, and increase in FDI limit (from 74% to 100%) in cable and DTH satellite platforms being the main reason behind the sector’s enlargement.
However, the changing trends are not devoid of risks. The M&E sector is exposed to asset protection risks that include piracy and digital intellectual property rights, risk of errors and omissions in print media, risks due to defamation of a character or inability to control the costs and keeping it within budget levels. Risk arising due to damage in property or to an individual while making of a film, TV soap, web series, advertisement, etc. also need ample coverage for the industry to remain sustainable and generate profits.
