Indian Media & Entertainment Market Booming, Expected to touch $55 Billion by 2024
According to a report published by PricewaterhouseCoopers (PwC) on the prospects of the growth in the Media & Entertainment Industry, PwC has stated that the Indian entertainment and media segments will grow at a rate of 10.1 percent and would be worth $55 billion by 2024. The PwC Global Entertainment and Media Outlook 2020-24 also predicted a K-shaped bifurcated recovery for the sector in the aftermath of the coronavirus pandemic and said the upward curve would be led by strong growth in OTT platforms, internet advertising, videos, games and e-sports segment, music and podcasts. The report also states that the over-the-top (OTT) market in India will surpass that of South Korea, Germany, and Australia to become the sixth-largest by 2024.
The report also stated on digital revenue globally that it was expected to contribute 60 percent to the total entertainment and media revenues by 2020. “OTT video in India is expected to see the largest gain and reach 5.2 percent by 2024, closely followed by internet advertising,” the report said, adding that while India would remain the world’s biggest cinema market in admission terms, cinema revenue in the country will contract at -2.6 percent to $1.5 billion over the next five years. “The pandemic has accelerated ongoing shifts in consumers’ behavior, pulling forward digital disruption and reaching industry tipping points that wouldn’t otherwise have been reached in the next few years. Our research shows that India will be the fastest growing entertainment and media market globally in terms of pure consumer revenue,” stated Rajib Basu, Partner & Leader, Entertainment and Media, PwC India.
The outlook also said companies must build and maintain direct-to-consumer relationships, offer enough differentiation or scale to compete, and unlock greater value using the right technologies. In the post-pandemic world, India holds the most potential of any market in the world in the OTT video segment. India is already the fastest-growing OTT market in the world, expanding at a CAGR of 28.6 percent, it said. This growth is coming from both inside and outside the home, PwC says, as internet-connected devices increase, leading to the rise of local ‘bite-sized’ entertainment platforms and user-generated content (UGC) formats. Mobile phones will be the primary driver of revenue in the internet advertising market due to increase in data affordability, new mobile-first formats and ability to measure and target audiences, it said.
Gaming and e-sports are capitalizing on the need to bring live experiences in more personalized and more engaging ways. E-sports was under one percent of overall market in 2019 but has become one of the fastest-growing segments with a projected 33 percent CAGR by 2024. The podcast industry was already experiencing rapid growth prior to the pandemic. Fuelled by the uptake of music-streaming brands, the overall space is expected to grow at a 13.5 percent annually till 2024 to $1.7 billion.