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Indian digital industry to be worth Rs 20k cr by '20: EY report

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MUMBAI: The Indian digital sector is anticipated to cross Rs 20,000 crore by 2020 which includes OTT and digital advertising. The industry at present is worth Rs 8, 490 crore.

The industry includes four key areas of digital revenues -- OTT and digital advertising, music OTT subscription, video OTT subscription, and gaming (in-app and paid).

Indian digital media market offers a unique opportunity as mobile penetration TV subscription services and traditional internet is much below the world average, according to an EY report.

The digital industry at present contributes around 14 per cent of the ad spend in India. However, by 2019, it is anticipated to be around a quarter of the total ad expenditure.

According to the report which states that the sector is prepared to see the entrance of new internet users and the net-using population likely to reach around 746 million by 2020, a large number of consumers are expected to start using digital platforms.

According to EY estimates, smartphone penetration is likely to be up to 59 per cent by 2020 from 31 per cent in 2015 and digital ad spend is scheduled to be Rs 185 billion by 2020.

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