The figures come from PwC’s Global Entertainment & Media Outlook 2022-2026, the 23rd annual analysis and forecast of consumer and advertiser E&M spending across 52 territories.
India’s entertainment and media industry is expected to reach INR 4,30,401 by 2026 at a CAGR of 8.8%. These figures come from PwC’s Global Entertainment & Media Outlook 2022-2026, the 23rd annual analysis and forecast of consumer and advertiser E&M spending across 52 territories.
Rajib Basu, Partner and Head – Entertainment and Media, PwC India said, “The outlook for Indian media and entertainment 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 pace of growth over the next few years. We will see a very different profile of media and entertainment related businesses and revenue models emerge in the digital space once we have the rollout of 5G.
Key findings for India in this year’s Outlook include:
OTT Video:
Total OTT revenues more than doubled in 2020, in part due to the absence of public entertainment and additional time spent at home. This trend continued in 2021, with revenue nearly doubling again. While growth rates will slow, the market will continue to expand at an impressive CAGR of 14.1% to reach INR 21,032Cr in 2026. Subscription services are driving this rapid growth, accounting for 90.5% of revenues in 2021 and should represent 95% in 2026.
Mainstream newspapers and magazines:
India will see an increase in total newspaper revenue at a CAGR of 2.7%, from INR 26,378 Cr in 2021 to INR 29,945 Cr in 2026. becoming the fifth-largest newspaper market by 2026, will also be the only country to see consistent growth in total newspaper printing revenue over the five-year forecast period. India will also be the only country in the world to increase its sales of printed daily 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.
Outdoor advertising:
The Indian Outdoor Advertising (OOH) market is showing one of the strongest returns in the world and is expected to grow at a CAGR of 12.57% to reach INR 5,562 Cr in 2026. Total OOH revenue has recovered from 63 .4% in 2021 from 2020 levels which was one of the steepest downturns in any market and the largest drop in revenue among the world’s major economies. In 2021, the total billboard revenue was INR 3,076 Cr. The momentum of this rebound will continue in 2022, and by the end of the year the market will be at the value of INR 4,084Cr.
Video games and esports:
India’s total video game and esports revenue was INR 16,200 Cr in 2021 and is projected to reach INR 37,535 Cr by 2026, growing by 18.3% CAGR. Although still a relatively 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 INR 13,244 Cr, social/casual gaming accounted for 83.9% of the total video game and esports revenue in India in 2021. With a CAGR of 20.6%, social/casual gaming revenue casuals are expected to reach INR 34,581 Cr by 2026. A big catalyst for this segment will be the emergence of 5G technology in the market.
TV advertising :
After several years of rapid expansion, India’s TV advertising market was hit by the COVID-19 recession in 2020, resulting in 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 INR 32,374Cr. The market will continue to expand at a CAGR of 6.3% to reach INR 43,410 Cr by 2026. At present, India will be the world’s fifth largest TV advertising market, after the United States, Japan, China and the UK.
Movie theater:
India is the world’s third largest market by 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% during the forecast period to reach INR 16,198Cr 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 in the US in 2020) although this was a huge (-85.4%) drop from the 1.9 billion tickets sold before the pandemic.
Internet advertising:
The Indian Internet Advertising Market is expected to grow at a CAGR of 12.1% to reach INR 28,234 Cr by 2026. country’s internet advertising, accounting for 60.1% of total revenue in 2021, rising to 69.3% by 2026. Display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021, although its share will fall to 88.9% of the total in 2026. Wired internet access revenue in India amounted to INR 6,379 in 2021 which is expected to increase at a CAGR of 6.3% to reach INR 8,829 d 2026.
Music, Radio & Podcast:
The music, radio and podcast segment in India grew by 18% in 2021 and is expected to grow at a CAGR of 9.8% to reach INR 11,536 Cr by 2026. Indian Music Industry Recorded (which is a key sub-segment) is steadily growing at a CAGR of 13.6%, driven by streaming models. Revenue here has grown from just INR 1,663Cr in 2017 to INR 2,568Cr in 2021 and is expected to continue on this path to reach INR 4,849Cr by 2026. On the other hand, the country’s live music industry remains small and lost two-thirds of its revenue in the first year of the COVID-19 pandemic. Revenue increased in 2021 to reach INR 434 Cr and is expected to reach INR 1,052 Cr revenue in 2026, growing at a CAGR of 19.2%.
Other Factors Impacting the Global E&M Industry –
Global Revenue – Fastest Growing Segments
After a strong 2021, Virtual Reality (VR) continues to progress to become a mass market proposition. VR gaming content is the top contributor to total revenue, bringing in US$1.9 billion in 2021 and the highest CAGR for the forecast period. Total cinema revenues will increase globally over the forecast period, and the pandemic losses incurred in 2020 will be reversed, with the market reaching new highs in 2023. Box office revenues are expected to reach 49 .4 billion in 2026. Internet advertising comfortably leads the way as the largest advertising segment. An exceptional 31.6% year-over-year increase in 2021 brought total global internet advertising revenue to $468.4 billion, up more than $112 billion in absolute terms in 2020 .
The metaverse awaits
In the not-too-distant future, the Metaverse could become an incredibly realistic world where individuals access immersive virtual experiences, via VR headsets or other connecting devices. Because the metaverse is an evolution that can profoundly change how businesses and consumers interact with products, services, and each other, its potential financial and economic value goes far beyond virtual reality. Over time, much of the revenue associated with video games, music performances, advertising, and even e-commerce could migrate to the metaverse.
What is the E&M opportunity in the metaverse? The fast-growing virtual reality market is a starting point to consider. It’s currently one of the smallest segments tracked, but the 36% rise in global spending over the past year is a hint of its long-term potential. The global installed base of standalone and connected VR headsets is expected to grow from 21.6 million in 2021 to 65.9 million in 2026.
Werner Ballhaus, Global Entertainment and Media Industry Leader, PwC Germany, said, “The industry press tends to focus on the companies that have dominated the E&M industry. But it’s the choices billions of consumers make about where to invest their time, attention and money that is fueling industry transformation and driving trends. We are seeing the emergence of a global E&M consumer base for years to come that is younger, more digital, and more interested in streaming and gaming than the current consumer population. It shapes the future of the industry.
