About the Media Sector
The Media and Entertainment industry in India is an important sector of the economy. The increase in availability of fast and cheap internet, growing incomes, and purchases of consumer durables are immensely aiding the industry. As per the FICCI-EY report, within the Media and Entertainment sector, TV is anticipated to remain the largest segment.
Future Outlook of the Media Sector in India
The Indian entertainment and media industry is predicted to grow 9.7% annually in terms of revenue to reach US$ 73.6 billion by 2027. As per a report published by IAMAI and Kantar Research, by 2025, India's internet users are expected to reach 900 million, from about 622 million internet users in 2020. The Advertising-based Video-on-Demand (AVoD) segment is anticipated to grow at a CAGR of 24% and reach US$ 2.6 billion by 2025.
Things To Consider Before Investing in the Media Sector
- Market demand: Understand evolving trends in consumer behaviour, such as the shift to digital platforms, streaming services, and emerging technologies. Stay attuned to changing preferences and adapt content strategies accordingly.
- Revenue streams: Understand the income sources of the company. Explore various revenue models, including subscriptions, advertising, content licensing, and partnerships. A mix of these channels can provide stability in dynamic market conditions.
- Competition: Analyse the dynamics between traditional and digital players. Identify key market players, potential disruptors, and innovative entrants. Evaluate market share, content libraries, and technological capabilities.
- Regulatory compliance: Stay informed about content regulations, data privacy laws, and other legal considerations. Comply with evolving standards and anticipate changes to minimise legal risks and ensure responsible content practices.
- Technological integration: Check for the companies that embrace cutting-edge technologies for content creation, distribution, and user engagement.
- Content quality: Check for companies that offer high-quality, diverse content that resonates with target audiences. Invest in market research to understand audience preferences and deliver engaging, relevant content across different platforms.
- Global and regional dynamics: Determine the companies that understand cultural nuances and local preferences. Companies that offer tailored content to diverse audiences and are aware of global and regional trends may have growth potential.
How To Invest in Media Sector Stocks?
Investing in media stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired media sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
