New Delhi: India's media and entertainment industry is expected to touch $73.6 billion in size by 2027, growing at 9.48% CAGR, according to the Global Entertainment & Media Outlook 2023-2027, a report launched by multinational professional services network PwC (Pricewaterhouse Coopers International Ltd).
With new launches from international players and increasing options to pay less, OTT revenue has surged in recent years, expanding a further 25.1% in 2022 to reach $1.8 billion, over six times the revenue of 2018. The market will continue to grow at an impressive rate, increasing at a 14.3% CAGR to produce revenue of $3.5 billion in 2027, the report said. This will be driven by the SVoD (subscription video-on-demand) sector, which accounted for 78.1% of market revenue in 2022. Although subscription service revenue will expand at a 13.0% CAGR to reach $2.6 billion, advertising-supported services (AVoD) will grow at a higher rate, albeit from a lower base.
India's total video games and esports revenue was $1.7 billion in 2022 and is expected to reach $4.2 billion by 2027, increasing at 19.4% CAGR.
The Indian Internet advertising market is among the fastest-growing in the world, with a 12.3% CAGR expected to see total revenue climb from $4.4 billion in 2022 to $7.9 billion by 2027. There will be growth across the market over the forecast period, with the strongest performances coming in the mobile sector, where an overall CAGR of 13.7% is expected to push total revenue from $3.1 billion to $5.8 billion.
As far as newspapers and consumer magazines go, the market will increase at a 3.7% CAGR between 2022 and 2027, with total revenue increasing from $1.1 billion to $1.3 billion. Print still dominates the Indian market, accounting for 80.1% of total revenue in 2022, with electronic books making up the other 19.9%.
India's out-of-home (OOH) advertising market is rapidly expanding. In 2022 total OOH revenue increased by 63.4%, this saw revenue valued at a new high of $681 million.
India's TV advertising market recovered rapidly from the covid-19 pandemic downturn, with revenue expanding 19.0% in 2021 and 11.9% in 2022 to reach $4.7 billion. TV ad spend will grow at a 6.4% CAGR to reach $6.5 billion in 2027. At this time, India will be the fourth-largest TV advertising market globally.
With movie theatres shut all through the pandemic, the Indian cinema sector suffered badly but is now rebounding rapidly. Total cinema revenue in India was up sharply in 2022, reaching $1.1 billion, up from $402 million in 2021. Revenue is expected to reach $2.3 billion by 2027 representing an increase at a 15.1% CAGR.
"The Indian media and entertainment outlook for the next few years will show an exciting pace of growth. 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," Rajib Basu, partner and leader – entertainment and media, PwC India said in a statement.
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