India's Media, Entertainment Industry To Exceed 291,000 Cr By 2021: Report

Thursday, June 8, 2017
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NEW DELHI: India's entertainment and media sector is expected to surpass Rs.291,000 crore by 2021 growing at a compound annual growth rate (CAGR) of 10.5 pct between 2017-2021, according to a report by PricewaterhouseCoopers (PwC).

TV subscription revenues are expected to grow from Rs.52,755 crore in 2016 to Rs.90,713 crore in 2021 at a CAGR of 11.6 pct. In terms of advertising, TV will continue to hold the larger share of the pie from Rs. 21,874 crore in 2016 to Rs.37,315 crore in 2021, even though internet advertising is expected to growth at a much faster rate of 18.6 per cent as opposed to TV advertising at 11.1 pct from 2017-2021.

Indian cinema will witness a rise of 10.4 pct of CAGR between 2017-2021 as box office revenue will rise from Rs 10,957 crore in 2016 to Rs.18,047 crore in 2021. This is one of the few major cinema markets in which 100 per cent digitisation of screens has not yet been achieved - and it is not expected to occur over the forecast period.

Ticket prices for films will rise at a CAGR of 7.9 pct in the same period.

Publishing in India is expected to grow from Rs.38,601 crore in 2016 to Rs.44,391 crore in 2021 at a CAGR of 3.1 pct. Book publishing, in particular, is projected to grow at 6.1 pct CAGR whereas magazines are expected to grow at a CAGR of 3. pct.

The Indian newspaper industry will grow from Rs.23,161 crore in 2016 to Rs.24,447 crore in 2021, but the growth rate is tailing off as the effects of digital disruption begin to be felt in a market that had long enjoyed print expansion, a statement read.

"Being the least digitised market, will allow the traditional media to grow without being disrupted by digital competition. Whereas one may be tempted to conclude that India's growth in this sector is divergent from the world's, it will do well for Indian players to keep their eyes on changing landscape globally and prepare for its eventual impact on the Indian market," said Frank D'Souza, Partner and Leader - Entertainment and Media, PwC India.

In terms of internet advertising revenue, India is ranked eighth in the Asia Pacific region. One reason behind immature online ad marketing is the lack of internet access among Indians -- with fixed broadband penetration remains low at just 6.9 pct in 2016.

Interestingly, the mobile internet advertising has only comprised 27.6 per cent of total online spending. India's internet video segment has produced revenues of Rs.560 crore in 2016 and will grow at 22.4 pct CAGR to reach a new high of Rs.1,540 crore in 2021.

Transactional video-on-demand will account for over 61 per cent of total internet video revenues in 2021.

Read Also:
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Source: IANS
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