Economic impact of the film, television, and online video services industry in India, 2019

Scale and outlook for the film, television, and OVS sectors in India

The film, television, and OVS industries (together referred to as “creative industries” in this report) in India represent a combined revenue of about INR 93k cr (US$ 13.3 bn) . Against the backdrop of a sluggish economy, these industries on aggregate have been resilient and performed well. The film sector is expected to post a growth of about 20 percent in FY20202, and the OVS industry remains in strong investment mode. The TV industry is in transition due to regulatory changes. Even the advertising revenue in FY2020 has been affected by the economic slowdown as the Indian economy moves towards formalisation.
India’s young population and rising incomes are expected to translate into rapid growth in discretionary spends. Unlike several developed markets, we expect traditional video to continue growing in India and OVS to have an additive (as against a disruptive) impact (at least in the medium term). In our base case, we expect the creative industries to grow at a CAGR of 10–11 percent over the next 3–4 years. However, creating a supporting environment could put these industries on a higher growth trajectory of 14–15 percent. This higher growth can unlock a correspondingly larger indirect and induced impact on the overall economy.

Economic impact of the film, TV, and OVS sectors in India

The creative industries are estimated to generate a direct gross output of INR 115k cr (US$ 16.5 bn), and provide direct employment to 8.5 lakh (848k) people3. Accounting for indirect and induced effects, the industry is estimated to generate a total gross output of INR 349k cr (US$ 49.9 bn) and a total employment of 26.6 lakh (2.6 mn). We estimate that the industry could add INR 233k cr (US$ 33.3 bn) of total gross output and 11.1 lakh (1.1 mn) total jobs over the next five years (base case growth)5 . If the creative industries follow a high growth path, these estimates could be 40–50 percent higher.

Putting the creative industries on a high growth path

The creative industries are expected to traverse a natural growth path driven by fundamental demographics (refer to our base case growth rates below). However, a supportive environment fostered through key enablers (indicated on the right) could shift these sectors to a high growth trajectory (14–15 percent CAGR vis-à-vis the expected 10–11 percent). This would translate into a 16 percent higher industry size five years down the line, and also unlock the associated direct, indirect, and induced economic benefits. This high growth trajectory could create additional 5–6 lakh jobs five years down the line (over and above the base-case growth trajectory).