The Future Of The Entertainment Industry In India: Is market monopoly inevitable in 2021?

Introduction

Through the years, if there’s one thing that has remained constant, it is the need for entertainment and recreation. It allows us to escape our strenuous life momentarily, refill our energy and head back amidst the stress and tension of the 21^st century. There is archeological evidence suggesting that early humans would paint, play the flute and relax with their families. That was their way of entertainment, and it is safe to say we have evolved to great heights since then.

The introduction of radio in 1919 became a massive mass communication hit and paved the way for more broadcasting and entertainment networks.

For the years to come, the invention and launch of television sets, computers, and cell phones started to create a foundation. They prepared the ground for the digitalization of the entertainment industry. However, the intervention of online streaming services has made many doubtful of the face of the entertainment industry as we know it. This has led to the redefining of digital entertainment and led to a change for the whole industry.

Here are some of the most prevalent forms of digital entertainment in the 21^st century:

• OTT streaming platforms
• Television
• Social media
• Movies

The New Wave: OTT Platforms

In recent years, there has been a surge of OTT streaming platforms and the number of users it has. Netflix started providing streaming services in the year 2007 in the US. India saw its first OTT platform in 2008 launched by reliance entertainment called BigFlix. Later, nexGTv was established in 2010, which allowed the user to watch live TV and on-demand content. Since then, there have been multiple OTT platforms introduced in the country. The increase in such online streaming platforms threatened the mainstream sources of entertainment, primarily television and theatre. It can be seen that the movie industry across the world underwent a considerable change in strategic and qualitative factors of production to compete with these platforms.

As per the PwC, the Indian ott market is said to reach a CAGR of 28.6% during 2020-24 with a market capacity of 2.9 billion dollars by 2024.  This makes India the fastest growing OTT platform and service provider in the world. Keeping that in mind, it is necessary to consider the impact this will have on the mainstream world of entertainment.

Will the rise of OTT platforms dominate the entire industry? How will TV and movie productions adapt to this new agent in the sector? What is the future of the entertainment industry in India and around the world?

The Competitors: TV and Movie Studios

Data from 2017 shows that over 63 million Indians spent 11.3 billion minutes on Hotstar, an online service provider. Netflix also had its fair share with over 4.2 million active users.

While we all can see the direct threat that OTT platforms pose to traditional media, some believe that it is a blessing in disguise, a saving grace to the Indian film industry. The high competition has compelled the film industry to modify and diversify its production and revamp its strategy if it wanted to stand in the market and face the competitors head-on. This revamp can be seen in movies like Tumbbad and Drishyam, to name a few. Although the change in production in terms of quality and quantity will take time, the film market is set to go on a steady path to match the increasing market standards of entertainment set today.

Tv media can also be seen rebooting their content to provide and cater to audiences of all age groups and deliver original and unique shows.

Some believe that the future will lead to OTT platforms dominating the entertainment industry, although such monopoly seems unlikely considering new restrictions laced by the government on 25^th February 2021.

So what is the future of the Entertainment Industry in India?

In conclusion, it is safe to say that despite hurdles in its way, India stands to be part of the top 6 largest OTT markets in the world by 2024. This massive success will also ensure that its competitors, film market, and classic television modify their content to sustain the cut-throat competition and market fluctuations.

“Waiting for opportunities in the entertainment industry is an impossibility; they are not coming. You have to make your own”. – Thomas Lennon

Also read: Entertainment and its sources

Connect with the author: Gargi Dave