The Indian Media & Entertainment (M & E) Industry is one of the fastest growing industries in the country and has grown significantly over the past few years. The Industry grew at an impressive annual rate of 10% from 2011 to 2017, fuelled by increased propensity of consumption and spending on leisure and entertainment on account of significant rise in disposable incomes.
The M & E industry has significant economic impact on the overall economy in terms of creating employment and generating revenues. With the potential to create 7 to 8 lakh jobs in the next five years, the sector is poised to continue on a double digit growth path in the near future.
The Confederation of Indian Industry (CII) brings together policy makers, industry stalwarts, academia from across the world in the Big Picture Summit, its annual flagship event to boost the Indian M & E Industry. This year, the sixth consecutive edition of the CII Big Picture Summit was held in New Delhi during 5-6 December.
CII’s report “The Nucleus of India’s Creative Economy: Unleashing the Talent Tsunami to Drive Growth” brought out in conjunction with the Big Picture Summit, highlighted growth outlook, trends, and growth drivers as well as challenges facing the industry.
Total Economic Impact of the Industry in terms of Revenue and Employment
There are multi-faceted economic benefits of the Industry on the overall economy as there is both direct as well as indirect impact of employment and revenues, with high multiplier effect. For example, the movie industry calls upon entertainment lawyers when drafting contracts, movie sets require electricians, carpenters and painters, thus generating indirect employment and revenues in these sectors.
Revenue: The direct revenue generated by the M & E Industry is estimated at around Rs 1.3 – 1.35 lakh crores for 2016-17. Considering the direct, indirect and induced benefits, the total output is placed at around Rs 4.5 lakh crores. This essentially means that each rupee earned in the industry translates to 3.5 rupees to the country with a total contribution of 2.8% to Indian GDP.
Employment: The Indian M & E Industry employs around 1.1-1.2 million people and significantly contributes to job creation in the country. These jobs are spread across various verticals including films, print, television, music, and radio as well as smaller sectors such as gaming, animation etc.
Considering the direct, indirect and induced benefits, the total employment opportunities generated by the industry are close to around 3.5-4 million. This is important as creating one job in the industry is creating about 3.6 jobs in the economy including in sectors such as communications, electronics, service industries etc.
Industry Growth Outlook
India is gearing for a consumption explosion with 250 million digital screens including smart phones, tablets, laptops and personal computers. The number is projected to multiply to 600 million by 2020.
The expected growth during 2017-2022 is predicted to be around 11-12% with the Industry looking to add over INR 3.5 lakh crores of additional revenues to the Indian economy.
India has the potential to emerge as a global M & E hub backed by a stable macroeconomic outlook, a young and English speaking workforce and the Government’s “Make in India” and “Digital India” initiatives.
The visual effects (VFX) industry is a rapidly evolving segment of the M & E Industry and could play a significant role in transforming India into a global M & E hub. The Indian Industry and the Government need to come together for realizing this dream and significant investments in education and infrastructure are required.
Role of the Creative Economy:
The Industry also plays a very important role in building a national identity and representing India’s brand globally. The sector is uniquely placed to influence consumer behaviour in a way that no other industry can. For example, Indian cinema has an impact across the world which also significantly contributes to India’s global standing as a place worth doing business with, as a place worth visiting and a place worth experiencing culture in many varied forms. Thus, the sector changes the world’s perception of India.
Employment Creation Potential of the Industry
With the Industry poised to grow significantly in the next five years, 7 to 8 lakh jobs are expected to be created directly in the industry. Two trends are expected to play out during these years – (i) the need for a very large workforce in the industry will alone mean 1.4 to 1.6 lakh trained individuals every year for the next five years, and (ii) skills required for evolving job roles to take the industry to the next stage of the growth, which would require concerted efforts from industry, academia and industry bodies.
Industry Trends and Talent Requirements
Rapid evolution of technology and advancements in the fields of automation, robotics and Artificial Intelligence (AI) will fundamentally a transform a large number of current job roles, which in turn will have significant impact on the talent requirements of the Industry. Three emerging trends would require specific talent needs in the Industry –
- Changing consumer demand will fundamentally change content creation which would require deep consumer insight for creating content for specific niches as opposed to masses
- New industry structures are changing the fundamentals of how the traditional media players compete as well as monetization structures
- With digital disruptions transforming the economy, the industry requires a significant share of talent that can perform well with respect to the technology, analytics and engineering needs of the Industry
Future of Talent & New Skill Requirements
The changing patterns of consumer behaviour and digital revolution will have far reaching implications on the consumption, production and employment patterns of the M & E Industry. Therefore, companies need to rethink and move away from traditional Human Resource (HR) functions to build HR that is more business outcome driven, recruit talent that is capable of adapting to new type of roles and adapt to changing business models.
For example, the rise of many new roles as a result of technological advancements will increase the demand for soft skill requirements which would require collaborating with smart machines, new technologies etc., with AI becoming a reality soon. Even existing jobs would require new skills as proliferation of data in marketing decisions and the extensive move to digital advertising gains pace. Therefore, large scale re-skilling of the current workforce is of utmost importance. With analytics and data sciences gaining more acceptance in the media space, the industry will see the advent of data roles in a big way.
Future Growth Drivers and Pathways for Action
With India’s unsaturated markets, untapped consumer segments and robust economic growth set to give a boost to the advertising industry, the next five years could potentially change the face of the M & E industry.
Three key opportunities will be the drivers of growth in the next five to seven years – tapping the rural un-connected consumer, capturing a large share of time of the digitally connected consumer and explosion in the supply of strategically segmented audiences.
The challenge for the M & E Industry is to fill the talent gaps for emerging roles for sustained growth in the future. The Industry could look to learn from Indian IT majors while also inculcating best-practices from the global media industry as these industries have immensely benefitted from the interplay of industry-academia partnerships as well as government-industry associations in successfully building a large pool of skilled talent.
Source: CII-BCG Report on Media & Entertainment: The Nucleus of India’s Creative Economy: Unleashing the Talent Tsunami to Drive Growth