Thursday, 6 June 2019 –According to PwC’s Global Entertainment & Media Outlook 2019–2023, the Indian entertainment and media industry is expected to reach INR 451,373 Cr by 2023, growing at a compound annual growth rate (CAGR) of 11.28% between 2018 and 2023.
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, “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 personalisation and increased digitalisation. 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.”
Key highlights of the report:
OTT (Over-The-Top) Video: India’s OTT video market will grow at a 21.8% CAGR from INR 4464Cr in 2018 to INR 11976Cr in 2023. Subscription video on demand will increase at a 23.3% CAGR from INR 3756Cr in 2018 to INR 10708Cr 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.
Internet advertising: Total Internet advertising revenue for India in 2018 was INR 8150Cr, 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 18445Cr in 2023.
E-sports: 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. However, with improvements in infrastructure, this is expected to improve significantly in the near future.
Music & Podcasts: India’s music, radio and podcasts market was worth INR 5753Cr in 2018, up from INR 3890Cr in 2014. With streaming services finally germinating, total music revenue is forecast to hit INR 10858Cr in 2023, rising at a 13.5% CAGR.. At that pace, India would be the fastest-growing major economy on the planet. And with a population surging past 140Cr, it is forecast to surpass that of China in 2022.
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. Growth is set to continue over the forecast period with listener numbers set to increase at a 34.5% CAGR to 17.61Cr by 2023.
Four priorities shaping companies’ strategies
As E&M companies reinvent their organisations and offerings for an increasingly personalised world, four priorities are coming to the fore:
Ennèl van Eeden, Global Entertainment and Media Leader and Partner, PwC Netherlands, comments:
“The personalisation wave — fuelled by evolving customer behaviour — is set to be amplified by the forces of technology, scale, and aggressive investing and competition. The implications for organisations are profound. As the borders separating former media silos erode, companies need to think more broadly about the areas and segments in which they operate. At the same time, all E&M players must take the need to ‘know your customer’ more seriously, and marketers need to allocate their time and attention to new types of content and platforms — influencers, live events, ads inside apps and more. Finally, companies must focus intently on their core capabilities and geographical markets, while continually scanning the horizon for new developments and regulations, and being agile in responding to technological developments such as 5G. Put simply: it’s time to get personal with consumers — or be left out of the conversation.”
About the Global Entertainment & Media Outlook
PwC’s 20th annual edition of the Global Entertainment & Media Outlook is a comprehensive online source of global analysis for consumer and advertising spending. With like-for-like, five-year historical and five-year forecast data and commentary for 14 defined industry segments in 53 territories, the Outlook makes it easy to compare and contrast consumer and advertising spending across segments and territories. Find out more at www.pwc.com/outlook.
Segments covered by the Global Entertainment & Media Outlook
Books; Business-to-business; Cinema; Data consumption; Internet access; Internet advertising; Music, radio and podcasts; Newspapers and consumer magazines; OTT video; Out-of-home advertising; Traditional TV and home video; TV advertising; Video games and esports; Virtual reality
About Global Entertainment & Media Outlook data
Much of the content in this press release is taken from data in the Global Entertainment & Media Outlook 2019–2023. PwC continually seeks to update the online Global Entertainment & Media Outlook data. Therefore, please note that the data in this press release may not be aligned with the data found online. The online Global Entertainment & Media Outlook 2019–2023 is the most up-to-date source of consumer and advertising spend data.
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Chief Communication Officer, PwC India
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