The past year has been nothing short of fascinating for the AVGC-XR industries. It’s been a year marked by notable developments – some exciting, others deeply challenging. What continues to make this industry so compelling is its vibrancy and its capacity to evolve. Regardless of any turbulence, this sector has always shown resilience, pushing forward with innovation and tenacity.
Shifting currents in India’s entertainment Industry
In India, the entertainment ecosystem is currently navigating something that can be described as a perfect storm. One of the most alarming trends of the past year has been the closure of several animation and VFX studios around the world. A significant driver of this shift is the substantial reduction in investments by OTT platforms, which once drove a wave of content creation across digital media.
Simultaneously, the traditional cable and satellite TV sector appears to have plateaued. With approximately 220 million homes already reached, the market is saturated. Subscriptions are beginning to decline as audiences migrate toward OTT services. However, a surprising area of growth is the Free Dish market, which has climbed from around 40 million to 43 million homes and is expected to reach 50 million in the coming years.
Bright spots: gaming and esports
Despite the headwinds, gaming continues to be a promising frontier. The Indian gaming market has shown amazing growth, with esports rapidly gaining popularity. Both sectors are attracting investment and talent, offering new career avenues and creative potential.
The XR space, while still in its nascent stage in India, is also showing promise – particularly in applications for museums and industrial training. XR and VR technologies are increasingly being recognised for their value in immersive learning environments, such as hazardous environment simulations or skill-based technical training.
Artificial intelligence (AI) disruption: a game-changer across the board
Undoubtedly, one of the most significant disruptors this year has been the explosion of AI. The AI “genie” is out of the bottle, and it is here to stay. Its impact is already being felt across all AVGC-XR sectors.
Artists, writers, and studios must now adapt to this reality. Learning AI tools and integrating them into creative and production workflows is no longer optional. AI is poised to streamline production pipelines, enhance efficiencies, and empower creators like never before. For instance, writers can now visualise characters, settings, and scenes with AI-generated visuals, while concept artists use AI for rapid ideation and reference gathering.
AI’s integration will reduce production timelines, increase efficiency, and potentially lower costs, though the infrastructure still comes at a price. While AI can accelerate output and assist in asset creation, the real differentiator will be originality. As AI becomes proficient in rehashing existing ideas, the demand for truly creative, novel, and unique content will rise. This is where talented artists and storytellers will shine.
Studios are already starting to adopt AI in meaningful ways across all roles, from animation production to asset design. The next frontier lies in mastering how to effectively and creatively make use of AI. As the tools improve rapidly, the quality and fidelity of AI-generated content is also rising. Every few months brings new models with better image quality and more intuitive outputs, making the creative process even more fluid.
A global appetite for Indian stories
Looking beyond India, there’s growing international interest in Indian content. Shows like Mighty Little Bheem, Deepa & Anoop have performed exceptionally well globally. Even culturally rich shows such as Krish Trish and Baltiboy: Bharat Hain Hum, which focuses on India’s unsung freedom fighters, have made their mark on platforms like Netflix. It not only made it to the top 10 most watched shows in India but was also featured in the Netflix Global List of most watched shows worldwide for the period of July 2023 to Dec 2023.
This success signals a strong global appetite for authentic Indian narratives. As a result, there’s a noticeable push to create more content rooted in Indian themes, not just in animation, but also in gaming. Several Indian-developed games currently in progress draw upon local mythology, history, and cultural stories, pointing to a promising future for ‘Made in India’ entertainment.
Embracing the future
The coming year holds immense potential for creators who are willing to evolve with the times. As AI, XR, and gaming technologies continue to redefine the AVGC-XR landscape, adaptability and creativity will be more critical than ever.
Whether it’s leveraging AI to create, experimenting with immersive technologies, or telling uniquely Indian stories for a global audience – one thing is clear: innovation will remain the heartbeat of the industry and vital for growth.
(This article has been contributed by FICCI AVGC-XR forum chairman Munjal Shroff and AnimationXpress does not necessarily subscribe to these views.)
