According to the PwC’s Global Entertainment & Media Outlook 2023-2027, which is the 24th annual analysis and forecast of E&M spending by consumers and advertisers across 53 territories in 13 sectors, India’s M&E industry is expected to reach USD 73.6 bn by 2027, with 9.7 pc CAGR.
The report revealed that India’s OTT revenue surged past INR 148,554 Cr (US$1.8 bn) in 2022, a six-fold increase from 2018. The growth shows an estimated annual growth rate of 14.3 pc. By 2027, the revenue is projected to reach INR 288,855 crore (US$3.5 bn).
According to the report, India’s out-of-home (OOH) advertising market’s revenue zoomed by 63.4 pc in 2022, reaching a new high of INR 56,202 crore (US$681 million). This growth is projected to continue at 9.9 pc CAGR.
Finding from the report revealed that Indian Internet advertising market is expected to grow from INR 363,132Cr (US$4.4bn) in 2022 to INR 651,987Cr (US$7.9bn) by 2027. The mobile sector will drive this growth with a CAGR of 13.7 pc, increasing total revenue from INR 255,843Cr (US$3.1bn) to INR 478,674Cr (US$5.8bn). In the wired sector, revenue will increase from INR 115,542Cr (US$1.4bn) to INR 173,311Cr (US$2.1bn), at a CAGR of 8.9 pc.
As per the report, India’s total video games and esports revenue was INR 140,301Cr (US$1.7bn) in 2022 and is expected to reach INR 346,626Cr (US$4.2bn) by 2027, increasing at 19.4 pc CAGR. Year-on-year growth in 2022 was 28.8 pc, a slight slowing of 2.1 pc points over the previous year.
The report stated that TV ad spend in India will grow at a 6.4 pc CAGR to reach INR 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.
In the print sector, growth will be more modest, with increase at a 1.7 pc CAGR expected. Print still dominates the Indian market, accounting for 80.1 pc of total revenue in 2022, with electronic books making up the other 19.9 pc. Electronic books will gain ground over the forecast period, making up 27.2 pc by 2027.
Total cinema revenue in India was up sharply in 2022, reaching INR 90,783Cr (US$1.1bn), up from INR 3317Cr (US$402mn) in 2021. Revenue is expected to reach INR 189,819Cr (US$2.3bn) by 2027 representing an increase at a 15.1 pc CAGR. Admissions are also rebounding. They were at 379mn in 2021 but went up to 986mn in 2022 and are expected to reach 1.4bn by 2027.
Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media & Telecom at PwC India, said, “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.”
