Mumbai: Largely led by OTT and digital advertising, Indian digital sector is all expected to cross Rs 20,000-crore mark by 2020. The sector is at present standing at Rs 8, 490 crore.
“The Indian digital sector is on the cusp of a strong phase of growth. With mobile penetration in excess of 100 per cent and traditional internet and TV subscription services below world average, the Indian digital media market provides a unique opportunity.
“The sector is poised to witness the entrance of newly acquired internet users with internet using population expected to reach approximately 746 million by 2020 and a large number of consumers expected to get introduced to using digital platforms,” the EY-vdonxt report on digital opportunity said.
The industry, which was pegged at Rs 8,490 crore in 2016, includes the four key areas of digital revenues OTT and digital advertising, video OTT subscription, music OTT subscription and gaming (in app and paid).
According to EY estimates, smartphone penetration is expected to be up to 59 per cent by 2020 from 31 per cent in 2015 and digital ad spend is slated to be Rs 185 billion by 2020, constituting a larger pie of the overall media spends.
Currently, digital media contributes to approximately 14 per cent of the total ad spend in the country, however, by 2019, it is expected to be aprroximately a quarter of the ad expenditure.
With PTI Inputs
Source: Zee News