The Indian entertainment and media industry is expected to reach Rs 4,30,401 crore by 2026 at 8.8% CAGR, according to the latest report from PwC. Titled “Global Entertainment and Media Outlook 2022-2026,” the report provides five-year projections of consumer and advertiser spending data across 14 segments and 52 territories. Due in part to the absence of public entertainment and extra time at home, total OTT revenues more than doubled in 2020. The report says the trend continued in 2021, with revenues having almost doubled again. The OTT market is estimated to grow at 14.1% CAGR to reach Rs 21,032 crore in 2026. Subscription services are driving this growth, according to the report, accounting for 90.5% of revenue in 2021 and should represent 95% in 2026.
For Rajib Basu, Partner and Leader – Entertainment and Media, PwC India, a different profile of media and entertainment related businesses and revenue models may emerge in the digital space after the rollout of 5G. “The outlook for Indian media and entertainment in the coming years is quite unique. The pace of growth in digital media and advertising is being led by the deeper penetration of the internet and mobile devices into our market. In the At the same time, traditional media will maintain their constant growth rate over the next few years,” he added.
As for mainstream newspapers and magazines, the report states that 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 over the five-year forecast period. The report also predicts that India will be the only country in the world to increase the sales of daily printed newspaper copies (in volume) during the forecast period. Rising to a CAGR of 1.3% – to an average of 139 million average daily print newspaper sales in 2026, or a third of the global daily total – will mean India will overtake China as the largest market. worldwide for readership of print editions in 2025.
After witnessing a slump, the Indian outdoor advertising (OOH) market appears to be demonstrating one of the strongest comebacks in the world and is expected to grow at 12.57% CAGR to reach Rs 5,562 crore in 2026 according to the report. In 2021, OOH’s total revenue reached Rs 3,076 Crore. The momentum of this rebound will continue into 2022, and by the end of the year, the market will be worth Rs 4,084 crore.
While the media and entertainment industry slumped in 2020 due to the pandemic, the gaming sector saw an uptick. The report highlights that the momentum will continue as total gaming and esports revenue in India is expected to reach Rs 37,535 crore by 2026 from Rs 16,200 crore in 2021. Of the total 13 244 crores, social/casual games accounted for 83.9% of India’s total. gaming and esports revenue in 2021. With a CAGR of 20.6%, social/casual gaming revenue is expected to reach Rs 34,581 crore by 2026. The emergence of 5G technology on the market will be one of the main catalysts for this segment.
With the country returning to economic growth in 2021, TV advertising grew by 16.9% to Rs 32,374 crore. The market will further expand at a CAGR of 6.3% to reach Rs 43,410 crore by 2026. Currently, India will be the world’s fifth largest TV advertising market, after the United States, the Japan, China and the UK, according to the report. Meanwhile, the report states that when it comes to cinema, India is the world’s third largest market in terms of attendance after China and the United States in 2021 and is expected to grow at the rate of 38.3% CAGR at over the forecast period to reach Rs 16,198 crore by 2026.
According to the report, Internet advertising is expected to grow at a CAGR of 12.1% to reach Rs 28,234 crore by 2026. % of total revenue in 2021 and will see a 69.3% increase by 2026. Display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021, although its share will drop to 88.9% of the total in 2026. Wireline Internet access revenue in India stood at Rs 6,379 crore in 2021 and is projected to grow at a CAGR of 6.3% to reach Rs 8,829 crore by 2026.
As for the music, radio and podcasts segment, the report claims that the segment grew by 18% in 2021 and is expected to grow at a CAGR of 9.8% to reach Rs 11,536 crore by 2026. On the back of streaming models, the Indian recorded music industry (which is a key sub-segment) is steadily growing at a CAGR of 13.6%. Translating this into revenue, from Rs 1,663 crore in 2017, the segment grew to Rs 2,568 crore in 2021 and is expected to continue on this path to Rs 4,849 crore by 2026.
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