Fault lines and fractures: Innovation and growth in a new competitive landscape
Disruptions in public health, supply chains and geopolitics made 2021 a year of uncertainty. But amid all the unpredictability, there is greater clarity about the overall trends of the market and the forces driving growth, and a better understanding of the fault lines and fractures that are altering the entertainment and media landscape.
India’s Entertainment & Media industry is expected to reach INR 4,30,401Cr by 2026 at 8.8% CAGR. The Outlook includes five-year historical and five-year forecast data and commentary for the Indian Entertainment & Media industry across segments - advertising (TV, internet, out-of-home); books; business-to-business; cinema; data consumption; internet access; music, radio and podcasts; newspapers and consumer magazines; OTT video; TV and home video; as well as Metaverse and NFT included for the first time this year.
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. Updated annually, the intuitive online tool allows you to easily browse, compare and contrast spending and growth rates.
Total OTT revenue more than doubled in 2020, partly driven by the absence of public entertainment and additional time at home. This trend continued in 2021, with revenue nearly doubling again. While growth rates will slow, the market will still expand at an impressive 14.1% CAGR to reach INR 21,032Cr in 2026. It is subscription services that are driving this rapid growth, accounting for 90.5% of revenue in 2021 and set to account for 95% in 2026.
India’s total video games and esports revenue was INR 16,200Cr in 2021, and is forecasted to reach INR 37,535Cr by 2026, increasing at a 18.3% CAGR. While still a fairly small market for the country’s size and population, India is the third fastest-growing video games market in the world, after Turkey and Pakistan. India's video games market is predominantly geared towards social/casual gaming. With revenue of INR 13,244Cr, social/casual gaming made up 83.9% of India’s total video games and esports revenue in 2021. Expanding at a 20.6% CAGR, social/casual gaming revenue is expected to reach INR 34,581Cr by 2026. A big enabler of this segment will be the emergence of 5G technology in the market.
India is the third-biggest market globally in terms of admissions after China and the US in 2021 and is set to grow at the highest growth rate amongst all the segments at a staggering 38.3% CAGR in the forecast period to reach INR 16,198Cr by 2026. In 2021 more than 379mn cinema tickets were sold in India, a healthy increase year-on-year on the 278mn admissions in 2020 (and higher than the 226mn admissions in the US in 2020) though that had been a huge (-85.4%) drop as compared to the 1.9bn tickets sold pre-pandemic.
India’s Internet advertising market is set to increase at a 12.1% CAGR to reach INR 28,234Cr by 2026. Given India’s mobile-first Internet access market, the mobile sector dominates the country’s Internet advertising market, accounting for 60.1% of total revenue in 2021, rising to 69.3% by 2026. Display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021 though its share will fall to 88.9% of the total in 2026. India’s wired Internet access revenue amounted to INR 6,379Cr in 2021 which is predicted to increase at a 6.3% CAGR to reach INR 8,829Cr by 2026.
India will see an increase in total newspaper revenue at a 2.7% CAGR from INR 26,378Cr in 2021 to INR 29,945Cr in 2026. India, which will leapfrog both France and the UK to become the fifth-biggest newspaper market by 2026, will also be the only country to grow total newspaper print revenue consistently across the five-year forecast period. India will also be the only country in the world to grow daily print newspaper copy sales (by volume) during the forecast period. The increase at a 1.3% CAGR – to an average of 139mn daily average print newspaper sales in 2026, one-third of the global daily total – will mean that India will overtake China as the biggest world market for print edition readership in 2025.
India’s out-of-home (OOH) advertising market is demonstrating one of the strongest comebacks globally and is predicted to grow at 12.57% CAGR to reach INR 5,562Cr in 2026. Total OOH revenue recovered by 63.4% in 2021 over the 2020 levels which was one of the steepest downturns of any market and the biggest fall in revenue among the world’s major economies. In 2021 total OOH revenue was up to INR 3,076Cr. The momentum of this rebound will carry over into 2022, and by year-end the market will be at the value INR 4,084Cr.