Indian entertainment and media industry is expected to reach INR 4,30,401Cr by 2026 at 8.8% CAGR (compound annual growth rate) with growth expected across all sectors.
PwC has released its annual analysis and forecast of entertainment and media spending by consumers and advertisers entitled “Global Entertainment and Media Outlook 2022-2026”.
The report states that total OTT (over the top) revenue more than doubled in 2020 and 2021 due to the pandemic. Since traditional entertainment sources started becoming available, growth is expected to slow to 14.1% CAGR to reach INR 21,032 crore in 2026. Subscription services are the major contributor to this growth accounting for 90.5% revenue in 2021 and together represent 95% in 2026.
Rajib Basu, Partner and Leader – Entertainment and Media, PwC India said: “The outlook for Indian media and entertainment in the coming years is quite unique. The pace of growth in digital media and advertising is exciting, thanks to 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.
India is also expected to become the fifth largest newspaper market by 2026, leaving behind France and the UK. Total newspaper revenue will grow at a CAGR of 2.7%.
Rising at a CAGR of 1.3%, to an average of 139 million average daily print newspaper sales in 2026, or one-third of the global daily total, will mean India will overtake China as the largest market. world for the readership of printed editions in 2025. .
The report explains that the Indian outdoor advertising (OOH) market is showing one of the strongest returns globally, with a projected CAGR of 12.57% CAGR in 2026. Total OOH revenue recovered by 63.4 % in 2021 compared to 2020. .
When it comes to video game and esports revenue, the report predicts a growth of 18.3% to reach INR 37,535Cr by 2026. India is the third fastest growing video game market in the world, after Turkey and Pakistan. With a CAGR of 20.6%, social/casual gaming revenue is expected to reach INR 34,581 Cr by 2026.
Hit by the Covid-19 recession in 2020, TV advertising made a comeback with a CAGR of 16.9% in 2021. The market will further expand at a CAGR of 6.3% to reach INR 43,410Cr by 2026. At this time, India will be the world’s fifth largest TV advertising market, after the United States, Japan, China and the United Kingdom.
India was the world’s third largest market in terms of admissions after China and the United States in 2021. It is expected to grow at the highest growth rate among all segments with a CAGR of 38.3% by 2026 .
The Indian internet advertising market is expected to grow at a CAGR of 12.1% to reach INR 28,234 Cr by 2026. Display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021, although its share falls to 88.9% of the total. in 2026. Wireline Internet access revenue in India is expected to grow at a CAGR of 6.3% by 2026.
India’s music, radio and podcast segment grew by 18% in 2021 and is expected to grow by 9.8% CAGR to reach INR 11,536 by 2026.
The fastest growing segments globally are Virtual Reality and Metaverse. 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: “Industry press tends to focus on companies that have dominated the entertainment and media 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 entertainment and media consumer base for years to come that is younger, more digital, and more geared towards streaming and gaming than the current consumer population. It shapes the future of the industry.
Goldman Sachs predicts that recorded music industry revenues will reach $52.3 billion by 2030.
