The media in India is surging fast towards a digital future. As per India Entertainment and Media Outlook 2014, a report from PwC on the sector, of all media, digital saw the highest year-on-year growth in penetration?of 47%?and in advertising revenue?of 26%?in 2013. The low bases explain the high growth numbers, but the medium managed to beat print to the second spot in terms of segment size in 2013, just behind TV, and contributed 22% of the sector?s overall revenue.
The segment, PwC predicts, will grow largely on the back of mobile data, and account for 29% of the sector?s revenue by 2018. While the picture is largely rosy for digital, it will not be all smooth-sailing. Though advertising revenue in the segment are predicted to trend upwards, given most internet content is delivered to consumers free, getting consumer revenue to rise sustainably will be the toughest challenge?if there is no direct conversion of usage into revenue for content providers, it will mean the true value of advertising revenue keep getting eroded. The disruptive nature of digital media will be evident in the way it causes consumption to change?with increased internet penetration, demand for content that has been contextualised to specific audience segments will grow.
