According to a PwC report, the india’s entertainment and media industry is expected to grow 9.7% annually to USD 73.6 billion by 2027.
PwC said in a report titled ‘Global Entertainment & Media Outlook 2023-2027’ that consumer preferences, increased internet access, and new technologies are reshaping the Entertainment and Media (E&M) industry fast. In this report, PwC analyzes and forecasts consumer and advertising spending across 53 territories in 13 sectors for the 24th year in a row.
As a result, the industry said 2022 marked a turning point. With a 10.6 percent growth rate in 2021 and a 5.4 percent growth rate in 2022, global E&M revenue of 2.32 trillion experienced a sharp decline. Due to a decline in consumer spending, E&M growth has been sluggish.
As a result, some key sectors experienced a drop in uptake and revenue during Covid-19. For example, podcasts, which were one of the industry’s major success stories during the pandemic, fell by an estimated 80 percent by 2022.
The report noted that Internet advertising — by far the largest contributor to overall advertising revenues — experienced sluggish growth in 2022 due to the global slowdown.
Compared to 2021, E&M revenue in India grew by 15.9 percent to USD 46,207 million in 2022.
The Indian market is expected to grow at a compound annual growth rate (CAGR) of 9.7% in the forecast period to reach USD 73,560 million in 2027,” PwC said.
Over-the-top (OTT) platforms, the gaming sector, traditional TV, internet and out-of-home (OOH) advertising, and the use of the metaverse will drive India’s E&M sector exponentially.
Advertisers are keen to access India’s diverse demography and large live audience due to the establishment of multidisciplinary cultural spaces in different metros.
Among the factors shaping the Entertainment and Media industry capex in 2023 is the launch of commercial 5G services in India in 2022.
According to the report, OTT revenue jumped from USD 1.4 billion in 2021 to USD 1.8 billion in 2022, over six times the revenue in 2018 and a 25.1% increase from USD 1.4 billion in 2018.
As the report noted, the Indian market will continue to grow at an impressive 14.3% through 2027, generating USD 3.5 billion in revenue.
A significant disruption is expected to occur in the media industry as emerging technologies such as AI (Artificial Intelligence), ML (Machine Learning) and the metaverse are adopted, according to Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media, & Telecom at PwC India. Keeping relevance with their audiences will require Media & Entertainment companies to invest heavily in transformative ideas in the future.”
We have a good view of how the industry has reset itself after the pandemic, according to Rajib Basu, Partner & Leader Entertainment & Media at PwC India.
The use of digital technologies and increased mobile penetration will disrupt existing channels and create new opportunities in the years to come.
Basu said traditional media and entertainment businesses must adapt the right growth strategies to compete with digitally powered businesses.
Both print and digital segments in India registered a combined CAGR of 3.212 percent this year, bucking global trends again.
According to the report, deals will continue to be an effective means of gaining scale, and in February 2023, the Competition Commission of India (CCI) conditionally approved a USD 10 billion merger between two large media conglomerates, resulting in the creation of one of India’s largest conglomerates with TV channels, digital platforms, and content production capabilities.
Additionally, the report asserted that the OTT and connected TV (CTV) markets in India have a huge long-term potential due to the size and diversity of the country’s population. Regional TV will continue to boost the OTT market in India.
India’s CAGR for the OTT segment is 14.32 percent, compared to 8.4 percent globally,” it said.
With market revenue forecast to grow from USD 7.6 million in 2021 to USD 21 million in 2027, India is poised to become one of the fastest-growing markets for e-sports (currently Saudi Arabia).
Furthermore, generative AI will enable brands to reach across the country’s many languages and regions with generic templates that can be tailored to specific regions with local messaging, according to the report.