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India’s entertainment and media industry is expected to reach INR 4,30,401 by 2026 at a CAGR of 8.8%. These statistics come from PwC’s Global Entertainment & Media Outlook 2022-2026, the 23rd annual analysis and forecast of consumer and advertiser E&M spending in 52 territories.
One fact that came as no surprise is that total OTT revenue more than doubled in 2020, due to a lack of public entertainment and also time spent at home due to the pandemic. The trend extended into 2021, with revenues again hitting almost 2x. Although the growth rate is slow, the market is still expected to expand at a CAGR of 14.1% to reach INR 21,032Cr in 2026.
“The outlook for Indian media and entertainment over 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. In the same time, traditional media will maintain their steady growth rate 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 deployment of 5G,” said Rajib Basu, Partner and Leader, Entertainment & Media, PwC India.
Regarding newspapers and magazines, there will be 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. This will propel India ahead of France and the United Kingdom to become the fifth country. the largest newspaper market by 2026. On the other hand, the outdoor advertising (OOH) market is showing one of the highest returns globally and is expected to grow at a CAGR of 12.57% to reach 5 562 Cr INR in 2026.
Talking about video games and esports industry, revenue was INR 16,200Cr in 2021 and is expected to reach INR 37,535Cr by 2026, growing at a CAGR of 18.3%. Understandably, the Indian TV advertising market was affected by the COVID-19 recession in 2020, resulting in a decline of -10.8% from 2019 levels. But with the country returning to economic growth in 2021 , it increased by 16.9% to 32,374Cr INR.
Indian cinema is expected to grow at a staggering CAGR of 38.3% over the forecast period to reach INR 16,198 by 2026, the highest of any segment.
Werner Ballhaus, Global Entertainment and Media Industry Leader, PwC Germany, also commented on the E&M industry. “Industry press tends to focus on 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. 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.This is shaping the future of the industry.
When it comes to emerging markets, the metaverse looms on the horizon. The virtual world where we will go to explore with our VR headsets is an evolution that could eventually change the whole human experience.
Photo by Julius Drost on Unsplash
