India’s Entertainment & Media industry is projected to reach INR 6,828,944 crore (US$73.6 billion) by 2027, growing at a compound annual growth rate (CAGR) of 9.48%. These findings are part of PwC’s Global Entertainment & Media Outlook 2023-2027, which analyzes and forecasts consumer and advertiser spending across 53 territories and 13 sectors.
According to Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media & Telecom at PwC India, the media industry is undergoing significant disruption as emerging technologies like AI, ML, and the metaverse gain traction. This disruption is driving media companies and content creators to provide more interactive and immersive experiences to viewers. Ahuja predicts that Media & Entertainment enterprises will heavily invest in transformative ideas to stay relevant with their audiences.
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India, emphasizes the exciting growth prospects for the Indian Media and Entertainment sector in the coming years. Basu highlights the industry’s resilience in resetting itself after the pandemic and mentions the importance of traditional media and entertainment businesses adopting the right strategies for growth to compete with digitally powered enterprises.
Key findings for India from this year’s Outlook include:
- OTT Video: Revenue from over-the-top (OTT) platforms has surged, with a growth rate of 25.1% in 2022, reaching INR 148,554 crore (US$1.8 billion). The market is expected to grow at a CAGR of 14.3% and generate revenue of INR 288,855 crore (US$3.5 billion) by 2027. Subscription video-on-demand (SVOD) services will drive this growth, accounting for 78.1% of market revenue in 2022.
- Video Games & Esports: India is the second-fastest-growing video games market globally, with revenue of INR 140,301 crore (US$1.7 billion) in 2022. It is projected to reach INR 346,626 crore (US$4.2 billion) by 2027, growing at a CAGR of 19.4%. The market’s growth rate may slow down but will still outpace the global average.
- Internet Advertising: The Indian Internet advertising market is among the fastest-growing, with a CAGR of 12.3% expected to propel total revenue from INR 363,132 crore (US$4.4 billion) in 2022 to INR 651,987 crore (US$7.9 billion) by 2027. Mobile advertising will experience the strongest growth, with a CAGR of 13.7%, followed by wired advertising at 8.9%.
- Newspapers & Consumer Magazines: India’s consumer book market will grow at a CAGR of 3.7%, increasing total revenue from INR 90,783 crore (US$1.1 billion) to INR 107,289 crore (US$1.3 billion) between 2022 and 2027. Electronic books will see significant growth at a CAGR of 10.3% and gain ground against print, which still dominates the market.
- Out-Of-Home Advertising: India’s out-of-home (OOH) advertising market is rapidly expanding, with revenue reaching INR 56,202 crore (US$681 million) in 2022. It is expected to grow at a CAGR of 9.9% and outperform other OOH markets in Asia Pacific. OOH advertising has low penetration in India, presenting opportunities for further development.
- TV Advertising: India’s TV advertising market recovered swiftly from the COVID-19 downturn, reaching INR 387,891 crore (US$4.7 billion) in 2022. It is forecasted to grow at a CAGR of 6.4%, reaching INR 536,445 crore (US$6.5 billion) by 2027. Advertisers see potential in India’s large population and live audiences, positioning it as the fourth-largest TV advertising market globally.
- Cinema: The Indian cinema sector experienced a significant setback during the pandemic but is now rebounding. Total cinema revenue reached INR 90,783 crore (US$1.1 billion) in 2022, with projections to reach INR 189,819 crore (US$2.3 billion) by 2027, growing at a CAGR of 15.1%. Admissions are also expected to increase from 986 million in 2022 to 1.4 billion by 2027.
- Music, Radio & Podcast: India’s total music, radio, and podcast market surpassed the INR 82,530 crore (US$1.0 billion) milestone in 2022, reaching INR 90,783 crore (US$1.1 billion). It is forecasted to grow to INR 123,795 crore (US$1.5 billion) by 2027. Recorded music and radio revenue drive the market, while live music has rebounded and is expected to reach INR 11,884 crore (US$144 million) by 2027.
Werner Ballhaus, Global Entertainment & Media Industry Leader at PwC Germany, acknowledges the impressive growth of the industry in the past two years due to the increased demand for digital products during the COVID-19 pandemic. However, he advises companies to transform their service offerings and tap into new markets and technologies to drive growth and engage consumers effectively.
