The media and entertainment industry has "humongous" potential in India and can grow up to four times to USD 100 billion in the next 10 years, said Star & Disney India Managing Director K Madhavan.
The audience demand for entertainment is only going up and the mode of distribution has changed for the industry, he said in his valedictory address in the 'Big Picture Summit' organised by industry body CII.
Currently, the media and entertainment industry stands at USD 24 billion and is about one per cent of the country's gross domestic product (GDP), he added.
"The industry has the potential to grow from USD 24 billion to USD 100 billion by 2030, which is what our vision is and our target should be. The potential of the media industry is untapped and humongous," said Madhavan.
However, he also added that the industry needs 'light-touch regulation' and need to be able to experiment with content and technology.
"The regulatory framework has to be supportive to grow the sector. We hope that through continued discussion and collaboration with the policymakers, we will be able to fully implement the principles of the 'ease of doing business'," he said adding that the industry needs to be able to invest in growth.
While talking about the industry potential, Madhavan said television penetration in India is only 70 per cent and has huge space to grow.
"We have 300 million households and even today barely 200 million households are connected to TV. That is another positive thing for the industry, one-third of the market is still away from the television," he said.
Moreover, television and streaming platforms' average revenue per user in India remains much lower compared to developed markets.
"Out of 1.2 billion mobile phones, only half of them are smartphones, which is 600 million. Mobile phones act today as personal screens and play a major role in content consumption," said Madhavan, who is also chairman of the CII National Committee on Media and Entertainment.
He added that the number of screens has gone up dramatically from 200 million to 600 million screens, and is growing.
While talking about the film industry, Madhavan said it is passing through a "critical" phase.
It has suffered in theatrical revenue in 2020 but they grew in digital and non-linear space, which is expected to grow at 30 per cent CAGR (compound annual growth rate) in the coming two years.
"The film industry has to take full advantage of new forms of distribution, to expand to new markets," he added.
However, he also added that the content must be created with a global appeal for global audiences and distributed around the world.
"For example, Hollywood has been earning almost 50 per cent of its theatrical revenues from outside the United States. Whereas In India, it is just 10-12 per cent," he said.
Over the print media, Madhavan said it still accounts for nearly Rs 20,000 crore of advertisements, as part of its overall Rs 30,000 crore of revenue.
"In the past few years, growth in print has come from the regional markets where the focus is on local and hyperlocal news," he said.
Across the world, reputed publishers in the print space have expanded their operations to podcasts, online apps, and other extensions, Madhavan said. "In India, there has recently been a rise in subscription-only journalism, especially online." Animation and visual effects are also at an inflexion point.
"India has less than 10 per cent of the global market share in VFX and animation, despite costs being almost one-fifth of developed markets," Madhavan said.
An effort in creating a skilled production base and offering incentives will help India capture a larger share of the growing global market, he added.