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Does online

streaming hurt

big studios and

multiplexes?

Ever since streaming services have been launched in India,
there have been discussions at various platforms as to how
has it impacted the business of big multiplexes, the single
screen cinemas and big studious. sunny sharma tries to
explore situation on the ground

eil Arden Opley, Director of compounded annual growth rate of 11.6 the back of telecom companies bun-
Danish movie “Daniel” who per cent. dling content with data packs to drive
was at IFFI 2019 on Novem- Digital will continue its scorching sales. Video subscription revenues grew
ber 26, 2019 observed that pace of growth to overtake filmed en- almost three times in 2018 to reach
N streaming while hitting at tertainment in 2019 and print by 2021, 1,340 crore, on the back of new and
the hold of big studios would “at the same said the report titled “A Billion Screens of re-launched video streaming platforms,
time lead to increasing the cost of local Opportunity”. At 570 million, India has growth of smartphones, spread of
filmmaking”. the second-highest number of Internet affordable broadband, regional language
He said, “US film-making is driven by users after China, growing 13 per cent and exclusive content, and live stream-
big studios while Europe adopts an in- annually and estimated to reach five ing of major cricket and other impact
dependent form of film-making. Indian million by 2021. The report estimates that properties.
filmmaking is more like US filmmak- approximately 2.5 million consumers in Ashish Pherwani, partner and me-
ing and it will catch up faster than Eu- India are digital only and would not nor- dia and entertainment leader, EY India
rope with movie making in Los Angeles. mally use traditional media. explained “The M&E sector has a sig-
European films are shot on small scale Digital ad spends grew 34 per cent to nificant opportunity given India’s young
and they are medium budgeted films and 15,400 crore and now account for demographics. The growth of digital in-
sometimes film-makers have to depend around 21 per cent of the ad market. frastructure is further enabling Indians
on European Union, Governments for Several broadcasters have started com- to fulfill the need for personal content
getting funds for the film”. bining selling of ads across over-the-top consumption, across languages and
A report released earlier in 2019 by (OTT) and linear platforms to enable genre. There is a large shift in consumer
lobby group Federation of Indian Cham- better monetization of marque proper- behaviour from mass produced content
bers of Commerce and Industry (FICCI) ties and increased utilization of digital to specific content defined to audience
and consulting firm EY suggests that inventory. segments.”
India’s media and entertainment (M&E) As far as the various video-on-de- The joint report suggests that the TV
sector grew 13.4 per cent year-on-year to mand services are concerned, adver- industry grew from 66,000 crore to
touch 1.67 trillion in 2018, powered by tising growth outpaced subscription 74,000 crore in 2018, a growth of 12 per
digital platforms that grew 42 per cent growth and is expected to comprise 52 cent and is estimated to reach 95,500
to 16,900 crore during the period. The per cent of the total pie by 2021. Digi- crore by 2021, with advertising growth
M&E sector in India is expected to cross tal subscription grew 262 per cent to at 10 per cent and subscription growth at
2.35 trillion ($33.6 billion) by 2021, at a reach 1,400 crore in 2018, primarily on 8 per cent. Similarly, the TV advertising

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