Introduction toMultimedia Market

Multimedia Hub

Animation as well as gaming Industry is a well established multi-billion Dollar knowledge based industry that has started to make firm grip in Indian market. Not only entertainment, it aids in job creation, sustained growth and the expansion of Trade in Global market. This Multimedia industry comprises of team of marketing Managers, sales team, Creative people, and technical programmers.

Multimedia has emerged as significant tool in Education, entertainment and technical presentations. It also supports other professionals such as Artists, Celebrities (for voice acting) and music publishers. Similarly in the field of education and advertisement streams and Global nonentertainment animation industry accounted for the turnover worth $15 billion in the year 2012.

One sub branch of Multimedia that has become a serious contender of multimedia market in India and around the globe is Game industry. This industry has shown an exponential growth in India after popularization of smart phones and availability of low cost Internet.

The online gaming segment has registered an impressive 45 per cent growth in the year 2020 with strong user base surpassing 365 million by March 2020, with Real Money Games (RMG) both card based and fantasy based, seeing strong traction. Casual gaming also saw strong consumption uptake in the year 2020 with in-app monetisation also started with good momentum.

Existing Market Of Online Gaming In India

The inking of India’s online gaming industry can be dated back to the decade starting in the year 2000, when console and PC gaming brought several middle-income group Indians on digital gaming platforms. For Indian Game development ecosystem, India acted primarily as service providers for international developers. Online gaming market realized impressive volumes with 120 million online gamer(s) and market value estimated at USD 290 mN in 2016. However, challenges like limited local games development facilities and monetisation of gamer(s) are still restraining force in spite of high potential. In recent years, local internet ecosystem has initiated the course correction by end to end local game development and adoption of digital payment solutions.

Indian online gaming industry is likely to add 190 million gamer(s) and become a USD 1Bn opportunity by the end of the year 2021 while it was just USD 290 million in year 2017. An average Indian online gamer::- • is introduced to online gaming through their friends, family and peer group • is engaged in gaming for stress relief and social interaction • prefers puzzle, action and adventure games.

During 2010s • The development ecosystem has evolved in line with the exponential growth of consumption. • With the development of comprehensive local expertise and influx of fresh funds, role of local companies is evolving from being a service provider to end-to-end game developers. This trend is expected to become bigger in future; with companies developing enhanced content customized to local market preferences. These local theme and language based games are expected to

positively impact the consumption patterns in near future. • During this period, the number of Indian gaming companies reached USD 250 mN and started launching their own titles.

India VS Global Gaming market • U.S. has a per capita media and entertainment spend of USD 1860, which is nearly 8x of that in Malaysia, nearly 11x of that in Brazil,15x of that in China, and 98x of that in India. • Despite having a modest share of media and entertainment spend, gaming has become a thriving sector in the developed economies. • China is an exception, since gaming accounts for 14 per cent of media and entertainment revenues, as against 4 per cent in U.S. and

U.K. and 8 per cent in Japan in 2015. This clearly implies that China is the largest gaming economy globally, surpassing U.S. • What establishes the developing economies as promising gaming markets of future is the fact that these countries have considerably younger population, which is likely to create a large market for the evolving gaming sector. • In India with more than 60 per cent of population is below the age of 35, makes it one of the largest potential market for online

gaming in terms of volume. • e-Sports, currently in nascent stages in India, has a promising potential going forward.

Existing Market Of VFX and Animation In India

2015 was a significant year for the Indian VFX industry with the release of one of the biggest hits, Baahubali – The Beginning, which spent INR 850 million on visual effects. The Animation & VFX industry grew by 13.8 percent in 2015 to rake in revenues of INR 51.1 billion. Now in the mid of year 2021 India has nearly 300 animation, 40 VFX and 85 game development studios with more than 15,000 professionals working for them. These studios have experienced a mix of content production, outsourced animation services and collaborative animation services. Over the last decade, the Indian animation industry has moved up the value chain from a traditional outsourcing model to creating its own intellectual property and co-productions. TV Industry is probably one of the largest consumers of animation content created in India. • The Indian animation industry continues to grow for 2D and 3D content for serving television (TV), OTT platforms and advertisements. • Over the years, there has been a gradual shift from a purely services-driven model to one which includes development of individual’s

Intellectual Property. • Further, many Indian studios have successfully launched their own animation shows internationally via OTT platforms. • This has led to an inflow of work to Indian studios from international platforms and is likely to increase further in the coming years The report, “A Year Off-Script: Time for Resilience,” provides an overview of India’s media and entertainment sector against the backdrop of economic strife — initially due to trade barriers and geopolitical tensions, then dramatically escalated by the coronavirus. The report illustrates the underlying health of the industries, which almost doubled in size in the four years before the pandemic. It grew from 53 billion rupees (USD$719 million) in fiscal year 2016 to 101 billion rupees ($1.37 billion) in year 2020. Of that, animation accounted for 21.8 billion rupees, VFX and post-production for 79.5 billion rupees. The report cites growing demand from overthe-top (i.e. streaming) services, noting the success story that is Mighty Little Bheem, Netflix’s first animated series from India. There is also a growing market for animated spinoffs from Bollywood franchises, such as the upcoming Dabangg from Cosmos-Maya and Arbaaz Khan Productions. As for VFX, there is rising demand from both Bollywood and international producers. The report also observes that, in both animation and VFX, overseas clients are starting to shift their outsourcing away from China due to “prevailing anti-China sentiment.” This could benefit Indian service studios. Among the problems experienced across animation and VFX since the lockdown are security issues concerning clients’ IP, and low internet speeds and bandwidth in homes. Small studios were slower than large ones in transitioning to remote working, in some cases taking one and a half months to return to full service. The report warns that many of these studios are likely to go out of business. Ultimately, the animation, VFX, and postproduction industries are projected to climb back to 77 billion rupees in Year 2022.