Getting personal: Putting the me in entertainment and media
Five-year projection of consumer and advertiser spending data across 14 segments and 53 territories
India is the fastest growing entertainment and media market globally and is expected to keep that momentum. Our research shows that in the next 5 years India will see significant growth in OTT, Online Gaming and Internet advertising. Growth in these sub-sectors spurs from the growing trends around personalization and increased digitalization. Today's consumer can now control their own media consumption through an expanding range of smart devices and curate their personal selection of channels using OTT services. Content is being pitched not at audiences of billions but separately at billions of individuals. The soon to arrive 5G networks will create further use cases, enhance user experiences and create disruptions leading to newer business opportunities. Long-term players in the Entertainment & Media space need to gear up to take advantage of such opportunities.
Total Internet advertising revenue for India in 2018 was INR 8393.4Cr, a 40.2% year-on-year increase from 2017. The Cricket World Cup and elections in 2019 are expected to boost advertising spends. Internet advertising is predicted to continue to grow rapidly in 2019 and beyond, and is forecast to be worth INR 18185Cr in 2023.
India’s OTT video market will grow at a 21.8% CAGR from INR 4462.4Cr in 2018 to INR 11890Cr in 2023. The potential of India’s enormous scale will become reality during the forecast period with its OTT video market overtaking that of South Korea to become the eighth-biggest market in the world by 2023.
India’s e-sports revenue is small at present but has strong potential with a calendar of well-supported events and leagues emerging. While outside sponsorship remains lower than global markets, this will see India’s e-sports sector increase at a 36.8% CAGR to the end of the forecast period. The main challenge for the segment has been poor online infrastructure, which has historically restricted growth.
With streaming services finally germinating, total music revenue is forecast to hit INR 11191.2Cr in 2023, rising at a 13.5% CAGR. Podcast listening has increased markedly in India in the past few years. Monthly listeners (defined as people who listened to at least one podcast in the last month) totalled 4Cr at the end of 2018, up a sharp 57.6% from 2.54Cr in the previous year. This made India the world’s third-largest podcast-listening market (after China and the US), although it ranks much lower on a per capita basis.
In a word, the theme this year is personalisation. Consumers are using an expanding array of connected devices to organise, curate and discover their own unique worlds of media. In response, companies are designing their offerings to revolve around personal preferences, using data and usage patterns to pitch their products not at audiences of billions, but separately at billions of individuals.
Understanding where consumers and advertisers are spending their money in the entertainment and media industry can help inform many important business decisions.
PwC’s Global Entertainment & Media Outlook provides a single comparable source of consumer and advertiser spending data and analysis. Regardless of how you influence business decisions, the Outlook can help you understand industry trends so you can capitalise on new opportunities.
Partner and Leader
Entertainment and Media, PwC India
Tel: +91 98 3640 9700