Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience. Technology and internet access will continue to influence the way Indians consume content. Our Outlook shows that the demand for great, localised content, increased internet penetration and the creation of new business models will drive the industry’s growth for the next decade.
India is the fastest-growing Internet Advertising market in the world at a CAGR of 18.8% during 2020-2025. Growth in mobile ad revenue overtook wired revenue in 2019 and is expected to be 74.4% of the total internet advertising revenue of INR 30471 Cr by 2025. In 2020 revenue from mobile internet advertising in India was INR 7331 Cr and will rise to INR 22350 Cr in 2025 – increasing at a 25.4% CAGR. This makes India the fastest-growing mobile ad market in the world, reflecting the potential for growth, with over half the population yet to take up a mobile Internet subscription in 2020.
TV advertising has continued to expand in 2020, despite COVID, reaching INR 35015 Cr. India is the fourth-largest market globally after the US, China and Japan. Further expansion at a 7.6% CAGR will take TV ad revenues to the level of INR 50660 Cr in 2025. Multichannel advertising will account for nearly 92% of the total TV advertising market in 2025. Online TV advertising will make modest inroads in the forecast period, with broadband penetration remaining extremely low at 7.3% of households.
The gaming market in India continues to enjoy exceptional growth and shows enormous potential. Video games and esports revenue reached INR 11250 Cr in 2020 and is set to expand to INR 24212 Cr in 2025, at 16.5% CAGR. India’s gaming market is dominated by the social/casual category, which accounted for 77% of all video games and esports revenue in 2020. India’s esports market is small but as awareness grows and, crucially, the mobile esports offering becomes stronger, this sector will see rapid expansion, at a 31.6% CAGR over the forecast period.
In 2020 the Indian newspaper & consumer magazines market was worth INR 26299 Cr and is likely to have a CAGR of 1.9% upto 2025. In 2020, print advertising revenue fell by 12.0% and print circulation revenue was down by 4.0%, mainly due to the pandemic. Digital magazine circulation and advertising revenue is set to increase between 2020 and 2025 from just INR 231 Cr to INR 358 Cr at a CAGR of 9.5%.
Box-office revenues plunged by 75% year-on-year in a COVID-hit 2020 to INR 2653 Cr. Local producers turned to digital streaming to make up the shortfall. Box-office revenue is expected to recover and grow at a CAGR of 39.3% grossing up INR 13857 Cr by the end of 2025. The overall segment comprising box-office and cinema advertising is predicted to grow back to pre-covid level by mid of 2023.
India’s total music, radio and podcasts market revenues dropped in 2020 to INR 4627 Cr, as the pandemic stripped almost INR 522 Cr from the country’s live music sector. Digital channels account for almost 90% of the recorded music market. And, like elsewhere, streaming is the most-popular category. Ad-supported streaming is the dominant digital product in India, generating INR 1088 Cr in 2020, almost twice the sum reported from subscription revenue (INR 581 Cr). The growth for the overall segment is predicted at 19.1% CAGR 2020-25 to reach INR 11026 Cr.
Partner and Leader<br>Entertainment and Media, PwC India
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