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India going to be fastest growing Media-Entertainment market till 2021

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India, Entertainment, Media, Smartphones, Mobile phones, Hotstar, Voot, SonyLIV, Netflix, Amazon Prime, Eros Now, ALTBalaji, Start-ups, Arre, YuppTV, Education news, Jobs news, Career news

New Delhi: India is expected to be among the top-10 entertainment and media markets globally by 2021 in terms of absolute numbers, according to a joint study by ASSOCHAM-PwC.

The country’s per capita media and entertainment spending is likely to be capped at USD 32 or Rs 2,080 by 2021, the study noted.

By some estimates, India is among the fastest growing OTT markets in the world and will be one of the top-10 by 2022, it said.

The market size is expected to reach USD 52.68 billion in 2022 from USD 30.36 billion in 2017, it claimed.

“It (India) is set to be in the top 10 entertainment and media markets globally by 2021 in terms of absolute numbers,” the study said.

It attributed growth of OTT content to increasing penetration of smartphones in the country and continuous rise in data consumption.

The OTT market (transactional video on demand and subscription video on demand) is set to grow at a compounded annual growth rate (CAGR) of 10.1 per cent during the period 2017-2022.

 

India is expected to be among top-10 Media-Entertainment markets by 2021:

 

“During the same period in India, the segment is expected to grow from USD 297 million to USD 823 million in 2022 at a CAGR of 22.6 per cent. With increasing smartphone penetration and lower data tariffs, VoD is showing promising growth,” the report said.

Globally, the industry has recently witnessed a shift in focus from content and distribution to user experience.

“India’s per capita media and entertainment spend will be capped at USD 32 (about Rs 2,080 ) by 2021. The spend is much lower than that of China, which will stand at USD 222 (Rs 14,430 ) for the same period, and that of the USA, which will have the highest spend at USD 2,260 USD (Rs 1.46 lakh),” the study said.

The large number of choices in the video-on-demand segment has spoilt consumers in India, the study noted.

“Hotstar has had a first-mover advantage in the OTT space in India. Other top players in the OTT ecosystem include Voot, SonyLIV, Netflix, Amazon Prime, Eros Now and ALTBalaji. Start-ups such as Arre and YuppTV are an additional presence,” it added.

In India OTT players, including Hotstar, Amazon Prime and Eros Now, are not only competing among themselves but also also with DTH players and other means.

“With increasing traffic in metro cities, the time spent on viewing videos is also on the rise. Cab aggregators, such as Ola, have installed tablets inside their cabs with a wide range of curated content for passengers at no additional cost,” the report said.

 

Business

Zomato acquires UberEats India for nearly Rs 2,500 crore

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New Delhi: Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.

Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.

“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.

According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.

Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.

It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.

The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.

Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.

“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.

“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.

On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.

The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.

The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date.

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