PremiumNEW DELHI: India, the world’s fastest growing media and entertainment market, is estimated to clock a compound annual growth rate (CAGR) of 10.75% to touch Rs412,656 crore by 2025, according to the Global Entertainment & Media Outlook 2021-2025, a yearly forecast of E&M (entertainment and media) spending by consumers and advertisers in 53 territories by multinational professional services network PwC (PricewaterhouseCoopers).
The covid-19 pandemic has accelerated the shift of younger consumers away from traditional media and towards platforms that enable lightly-produced, authentic content driven by data.
The trend is not unique to India, said Rajib Basu, partner and leader – entertainment and media, PwC India, but definitely catching up much faster here. India is the fastest-growing Internet advertising market in the world at a CAGR of 18.8% during 2020-2025.
Rural internet users at 227 million surpassed metropolitan cities (205 million) in 2020. The number of Internet users is likely to reach 900 million by 2025.
Segments like OTT, Internet advertising, video games and esports, and Internet access will grow the fastest, managing double-digit CAGR during 2020-25 in the country.
Basu said the entertainment and media sector has been resilient in India and is the fastest growing market globally in terms of consumer and advertising revenue. The demand for localised content, increased Internet penetration and the creation of new business models will drive the industry’s growth for the next five years, he added.
In 2020, revenue from mobile advertising in India was at Rs7,331 crore, which will touch Rs22,350 crore in 2025, rising at a 25.4% CAGR.
The video gaming and e-sports market also continues to enjoy exceptional growth, around three times the global average. The segment revenue reached Rs. 11,250 crore in 2020 and is set to expand to Rs. 24,213 crore in 2025. India’s gaming market is dominated by the social or casual category, which accounted for 77% of all video games and esports revenue in 2020.
Advertising and subscription growth will drive the over-the-top streaming platforms to touch $2.9 billion (Rs21,589 crore), up from $1.3 billion (Rs9,678 crore) in 2020, making it the third-largest VoD market in Asia Pacific after China and Japan. The SVoD (subscription video-on-demand) services will grow $1.2 billion (Rs. 8934 crore) to $2.7 billion (Rs. 20,102 crore) by 2025.
TV advertising has continued to expand in 2020 despite covid, reaching Rs.35,015 crore. By 2025, TV ad revenue will touch Rs50,586 crore. TV viewing grew at 6.9% in 2020, with over 210 million households accessing the medium now.
Film box office revenue slumped 75% to Rs2,652 crore in 2020 as theatres remained shut for most of the year. The film segment is expected to recover and grow at a CAGR of 39.3% grossing Rs13,857 crore by the end of 2025. The dynamic between big-screen entertainment and OTT content should play out smoothly, Basu said, with the former becoming a space for large-scale star vehicles and the latter accommodating more content-based programming.
In 2020, the Indian newspaper and consumer magazines market was worth Rs. 26,299 crore and is likely to have a CAGR of 1.82% up to 2025. In 2020, print advertising revenue fell by 12% and print circulation revenue was down by 4%, mainly due to the pandemic.
India’s music, radio and podcast market revenue dropped in 2020 to Rs4,626 crore, as the pandemic stripped off almost Rs522 crore from the country’s live music sector. Ad-supported music streaming is the dominant digital product in India, generating Rs1,088 crore in 2020, almost twice the sum reported from subscription revenue at Rs581 crore. The growth for the overall segment is predicted at 19.1% CAGR 2020-25 to reach Rs11,026 crore.
Werner Ballhaus, global entertainment and media industry leader partner, PwC Germany, said that even a sector like video streaming--the social, political, and regulatory context in which all companies operate--continues to evolve in unpredictable ways. All of which means that sitting still, relying on the strategies that created value and locked up market share in the past, will not be the most effective posture going forward.
The regulatory scrutiny of big tech is yet another shift impacting E&M, the report said. In India, platforms such as Facebook, Twitter and OTT services like Netflix and Amazon Prime Video too have been pulled up by the government lately and are now under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.
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