Opinions expressed by Entrepreneur contributors are their own.
You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.
The Indian entertainment and media industry is projected to reach INR 4,30,401Cr by 2026 at 8.8% CAGR. These statistics were from PwC’s Global Entertainment & Media Outlook 2022-2026, the 23rd annual analysis and forecast of E&M spending by consumers and advertisers across 52 territories.
One fact which came as no surprise was that the total OTT revenue more than doubled in 2020, driven by a lack of public entertainment and also the time spent at home due to the pandemic. The trend spilled over to 2021, with the revenue almost touching 2x again. Although the growth rate is slow, the market will still expand at 14.1% CAGR to reach INR 21,032Cr in 2026.
“The Indian Media and Entertainment outlook for the next few years is quite unique. There is an exciting pace of growth of digital media and advertising led by the deeper penetration of internet and mobile devices in our market. At the same time, traditional media will hold their steady growth rate over the next few years. We shall see a very different profile of media and entertainment related businesses and revenue models emerging in the digital space once we have the rollout of 5G,” said Rajib Basu, Partner & Leader, entertainment & media, PwC India.
While looking at newspapers and magazines, there will be an increase in total newspaper revenue at a 2.7% CAGR from INR 26,378Cr in 2021 to INR 29,945Cr in 2026. This shall catapult India ahead of both France and the UK to become the fifth- The biggest newspaper market by 2026. On the other hand, the out-of-home (OOH) advertising market is displyaing one of the most significant comebacka global, and is predicted to grow at 12.57% CAGR to reach INR 5,562Cr in 2026.
Talking about the video games and esports industry, revenue was INR 16,200Cr in 2021, and is predicted to reach INR 37,535Cr by 2026, increasing at a 18.3% CAGR. Understandably, India’s TV advertising market was affected by the COVID-19 recession in 2020, causing a -10.8% decline over the 2019 levels. But with the country’s return to economic growth in 2021, it went up by 16.9% to INR 32,374Cr.
Indian cinema is predicted to rise at a stunning 38.3% CAGR in the forecast period to reach INR 16,198Cr by 2026, the highest among all the segments.
Werner Ballhaus, Global Entertainment & Media Industry Leader, PwC Germany, also commented on the E and M industry. “Industry press tends to focus on the companies that have dominated the E&M industry. But it is the choices that billions of consumers make about where they will invest their time, attention and money that are fueling the industry’s transformation and driving the trends. Seeing the emergence of a global E&M consumer base for the coming years that is younger, more digital and more into streaming and gaming than the current consumer population. This is shaping the future of the industry.”
Looking at emerging markets, the metaverse looms large on the horizon. The virtual world where we shall go out exploring with our VR headsets is an evolution which could possibly change the entire human experience.