MUMBAI: Even as the Indian media and entertainment (M&E) sector is projected to cross $31 billion by 2020, Minister for Information and Broadcasting (MIB) Smriti Irani said yesterday it is imperative that the country as a whole projected the economic value that the industry lends to the country’s economy.

Speaking at the FICCI-Frames 2018 inaugural ceremony here, Irani said the Indian M&E industry is much more than just naach-gana (song and dance) and it was high time that the industry came forward to articulate the economic value and contribution that it gave to the Indian economy and exhorted the industry to use modern data analytics and technology to arrive at conclusions at the type of content the consumer desired.

Referring to artificial intelligence or AI and other technologies, she said, “Technology is looked upon as a disruptor, but have we looked at technology from a creative point of view?”

The Indian M&E sector hit nearly Rs 1.5 trillion ($22.7 billion) in 2017, growth of around 13 per cent over 2016. With its current trajectory, it is expected to cross Rs 2 trillion ($31 billion) by 2020, at a CAGR of 11.6 per cent. The digital segment-led growth demonstrates that advertising budgets are in line with the changing content consumption patterns, according to the FICCI-EY report 'Re-imagining India’s M&E sector.'

Launched on Sunday in the presence of the minister and other industry stalwarts such as Star India MD Sanjay Gupta, Siddharth Roy Kapoor and filmmaker Karna Johar, the FICCI-EY report highlighted that the M&E sector continues to grow at a rate faster than the GDP growth rate, reflecting the growing disposable income led by stable economic growth and changing demographics.

The report states that the subscription growth outpaced advertising growth in 2017, but advertising would continue to grow till 2020 led by digital advertising.

The report estimates that 1.5 million consumers in India today are digital-only and would not normally use traditional media. It is expected that this customer base will to grow to 4 million by 2020, generating significant digital subscription revenue of approximately Rs 20 billion. Going forward, micropayments, enabled through the Unified Payment Interface (UPI) and Bharat Interface for Money (BHIM) platforms, developed by the National Payments Corporation of India (NPCI), will further accelerate subscription revenue for entertainment content.

EY partner and M&E leader Farokh Balsara stated, "The Indian M&E sector reached INR1.5 trillion in 2017 led by digital. With digital subscribers expected to reach 20 million by 2020, has Indian M&E reached its digital tipping point? We now need to reimagine the future of Indian M&E sector."

Said Gupta, “These are truly exciting times for our industry. It is amongst the fastest growing sectors in the country and has crossed the Rs 147 thousand crore mark. There is a revolution happening all around us, one that promises to, and in fact, has already started to redefine the future of media and entertainment.”

“To compete well with the world, we need to set new standards of storytelling, we need to reimagine our stories. We cannot allow our legacy to shape our creativity. With digital, we have the license to break away from all the trappings of traditional media. We need to challenge where we release our films first, in a theatre or on a mobile screen. We need to challenge the constraints of 8 pm prime time, daily and hourly news formats and 22-minute episode lengths,” he added.