In a significant milestone for India’s digital media landscape, six homegrown companies have secured positions in the top 10 rankings of pure-play digital media companies by revenue for the fiscal year 2023, according to a report published by market research firm Redseer Strategy Consultants.
The notable Indian companies making waves in the digital media sector include Dream Sports, Gameskraft, Games24x7, Verse Innovations, Junglee Games, and Times Internet. This achievement underscores the rapid growth and innovation taking place within the country’s digital media industry.
The Indian digital media market has experienced unprecedented expansion, reaching an estimated market size of $11 billion in FY23. This remarkable growth has been fueled by a surge in internet users and their engagement, resulting in an impressive Compound Annual Growth Rate (CAGR) of 35 percent over the past two years, largely attributed to the tailwinds generated by the COVID-19 pandemic.
Mukesh Kumar, Associate Partner at Redseer, highlighted the key factors driving the success of domestic digital media companies, stating, “The focus on ‘For India’ content and strategic alignment with local consumer interests have proven pivotal for domestic digital media companies. With this trajectory, we anticipate further revenue expansion and market dominance for these platforms.”
The robust performance of the digital media market in India encompasses various segments, including over-the-top (OTT) video services, audio streaming, short-form video platforms, and digital gaming. Excluding contributions from social media platforms, the report revealed that this sector alone injected an impressive $5.5 billion into the overall digital media market ecosystem.
A significant portion of this contribution, approximately 60 percent, is attributed to the digital gaming sector. The report highlighted the popularity of gaming in India, citing the success of domestic games such as rummy and the leveraging of cricket’s popularity through daily fantasy sports.
The report also emphasized the industry’s focus on vernacular content and the understanding of the diverse languages and cultural nuances across India. Game developers are increasingly localizing their products and creating content in native languages to cater to a broader audience, further contributing to the sector’s growth.
India’s digital media companies have showcased their ability to adapt, innovate, and connect with local audiences, positioning themselves as formidable players in the global digital media landscape. As the digital media market continues to evolve, these companies are well-positioned to maintain their growth trajectory and market dominance.
