India’s media and entertainment industry is expected to grow at a CAGR of 8.8% and reach Rs 4.30 lakh crore by 2026, according to a report by global consultancy PwC.
Growth would be driven by digital media and advertising through deeper penetration of internet and mobile devices in the domestic market, as well as traditional media, which will maintain its steady growth, according to the report.
TV advertising is expected to reach over Rs 43,000 crore by 2026. This will make India the world’s fifth largest TV advertising market, after the US, Japan, China and the UK.
India’s media and entertainment industry is expected to be around Rs 3.14 crore in 2022, registering an overall growth of 11.4%, according to PwC’s Global Entertainment & Media Outlook 2022-2026.
India’s OTT video services are expected to grow into a Rs 21,031 crore industry over the next four years by 2026, of which Rs 19,973 crore will come from subscription services and Rs 1,058 crore from transactional VOD (video on demand).
“Subscription services are driving this rapid growth, accounting for 90.5% of revenue in 2021 and expected to account for 95% in 2026,” he said.
The population size and widespread use of mobile internet video will support the rapid growth of the OTT market over the forecast period. In particular, the adoption of 5G will enable low latency services such as OTT video streams, which will significantly boost the industry.
“As infrastructure improves over the long term, the scale and diversity of the population will lend itself to a wide range of platforms,” the report adds.
TV advertising would reach Rs 43,568 crore in 2026 from Rs 35,270 crore in 2022, registering a growth of 23.52%.
“After several years of rapid expansion, the Indian TV advertising market was hit by the COVID-19 recession in 2020, causing a decline of 10.8% from 2019 levels. This turned out to be a temporary setback. With the country returning to economic growth in 2021, this segment grew by 16.9% to Rs 32,374 crore,” he said.
The Indian internet advertising market is expected to grow at a CAGR of 12.1% to reach Rs 28,234 crore by 2026.
“Given India’s largest mobile internet access market, the mobile sector dominates the country’s internet advertising market, accounting for 60.1% of total revenue in 2021, rising to 69.3% of by 2026,” the report said, adding that “display advertising dominates the mobile sector, which accounts for 90.7% of revenue in 2021, but its share will drop to 88.9% of the total in 2026.”
The ‘Music, Radio & Podcast’ segment grew by 18% in 2021 to reach Rs 7,216 crore and is expected to grow 9.8% CAGR to reach Rs 11,536 crore by 2026.
“The Indian recorded music industry (which is a key sub-segment) is growing steadily at a CAGR of 13.6%, driven by streaming models,” he said.
It is estimated that video game and esports revenue in India will reach Rs 37,535 crore by 2026, growing at a CAGR of 18.3%.
“While still a fairly small market for the size and population of the country, India is the third fastest growing video game market in the world, after Turkey and Pakistan. The Indian video game market is mainly focused on social/casual games With revenue of Rs 13,244 crores, social/casual games accounted for 83.9% of total video game and esports revenue in India in 2021 “says the PwC report.
The Indian film industry is expected to generate revenue of around Rs 16,198 crore by 2026, of which Rs 15,849 crore would be box office revenue and the rest Rs 349 crore from advertising, the report adds. .
“India is the world’s third largest market in terms of admissions after China and the United States in 2021 and is expected to grow at the highest growth rate among all segments with a staggering CAGR of 38.3% over the course of 2021. the forecast period to reach Rs 16,198 crore by 2026.
“In 2021, over 379 million cinema tickets were sold in India, a strong year-on-year increase from 278 million admissions in 2020 (and more than the 226 million admissions to United States in 2020) even though that had been a huge (85.4%) drop from the 1.9 billion tickets sold before the pandemic,” he said.
India will see an increase in total newspaper revenue at a CAGR of 2.7% from Rs 26,378 crore in 2021 to Rs 29,945 crore in 2026.
“India, which will overtake both France and the UK to become the fifth largest newspaper market by 2026, will also be the only country to steadily increase total newspaper printing revenue in the five-year forecast period. India will also be the only country in the world to increase sales of printed daily newspaper copies (in volume) during the forecast period,” the PwC report states.
The increase of 1.3 by CAGR – to an average of 139 million average daily print newspaper sales in 2026, or one-third of the global daily total will mean that India will overtake China as the world’s largest market for the readership of printed editions in 2025.
PwC India Partner and Leader Entertainment & Media – Rajib Basu said the industry outlook for the next few years is quite unique.
“There is an exciting pace of growth in digital media and advertising, driven by the deeper penetration of the internet and mobile devices into our market. At the same time, traditional media will maintain its steady rate of growth over the of the next few years. We will see a very different profile of media and entertainment related businesses and revenue models emerging in the digital space once we have the rollout of 5G,” he noted.
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