India’s Entertainment & Media industry is expected to reach Rs 6,828,944 crore by 2027 at 9.48% CAGR, as per PwC's Global Entertainment & Media Outlook 2023-2027.
Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media & Telecom at PwC India, stated, "As the adoption of emerging technologies such as AI, ML and the metaverse increase, the range of use cases will broaden, leading to a significant disruption in the media industry. Media companies and content creators are already striving to provide more interactive and immersive experiences to viewers. We anticipate that Media & Entertainment enterprises will invest heavily in the transformative ideas of the future to maintain relevance with their audiences."
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, “The Indian Media and Entertainment outlook for the next few years will show an exciting pace of growth. We have a good view of how the industry has reset itself after the pandemic. Increased mobile penetration and the use of digital technologies are poised to disrupt existing channels and create new possibilities in the years ahead for the sector. It is increasingly becoming important for traditional media and entertainment businesses to adopt the right strategies for growth as they face competition from digitally powered businesses.”
The other key findings in the report are:
OTT Video: With new launches from international players and increasing “pay-lite” options, OTT revenue has surged in recent years, expanding a further 25.1% in 2022 to reach Rs 148,554Cr (US$1.8bn). This is over six times the revenue of 2018. The market will continue to grow at an impressive rate, increasing at a 14.3% CAGR to produce revenue of Rs 288,855 crore.
Video games & Esports: India’s total video games and esports revenue was Rs 140,301 crore in 2022 and is expected to reach Rs 346,626 crore by 2027, increasing at a formidable 19.4% CAGR.
Internet advertising: The Indian Internet advertising market is among the fastest-growing in the world, with a 12.3% CAGR expected to see total revenue climb from Rs 363,132Cr (US$4.4bn) in 2022 to Rs 651,987 Cr (US$7.9bn) by 2027.
Out-Of-Home Advertising: In 2022, total OOH revenue increased by 63.4%, this saw revenue valued at a new high of Rs 56,202 crore.
TV advertising: TV ad spend will grow at a 6.4% CAGR to reach Rs 536,445Cr (US$6.5bn) in 2027. At this time, India will be the fourth-largest TV advertising market globally, after the US, Japan and China. The market’s expansion continues to be based on economic development and an increasing proportion of households having television sets.
Werner Ballhaus, Global Entertainment & Media Industry Leader, PwC Germany, said: “We have seen impressive growth in the entertainment and media industry over the past two years following a surge in demand for digital products during COVID-19. However, macroeconomic challenges, increased industry competition, and a reduction in production costs – particularly in digital services and experiences - have reduced revenues and consumers’ willingness-to-pay. If companies in the EM industry are to successfully engage consumers and drive growth, they need to transform their service offerings and tap into new and emerging markets and technologies, such as Asia and generative AI.”
