-By ArdorComm News Network
July 19, 2023
According to a recent report by consultancy firm PwC titled “Global Entertainment & Media Outlook 2023-2027,” India’s media and entertainment industry is expected to reach a valuation of $73.6 billion by 2027, with a compound annual growth rate (CAGR) of 9.48%. The study highlights the significant growth potential in various segments of the industry.
Streaming services are leading the growth, with revenues surging by 25% in 2022, reaching $1.8 billion. The market is projected to continue expanding at a CAGR of 14%, generating revenue of $3.5 billion by 2027. This growth will be primarily driven by the competitive subscription video-on-demand (SVOD) sector, which accounted for 78% of the industry’s revenue in 2022. While subscription service revenues are expected to reach $2.6 billion with a 13% CAGR, ad-supported services (AVOD) will experience faster growth, albeit from a lower base.
After experiencing a slump during the pandemic, the cinema segment has shown signs of recovery, with revenues reaching $1.1 billion in 2022. It is projected to grow by 15% and reach $2.3 billion by 2027. Admissions are also expected to increase from 986 million in 2022 to 1.4 billion by 2027.
TV advertising remains the largest segment in terms of size, with revenues reaching $4.7 billion in 2022. The report forecasts a 6.4% CAGR for TV ad spend, leading to a market size of $6.5 billion by 2027. This growth will position India as the fourth-largest TV advertising market globally, following the United States, Japan, and China.
The video games and e-sports sector in India is the second-fastest-growing market in the world, behind Pakistan. Revenues in this segment reached $1.7 billion in 2022 and are expected to grow at a CAGR of 19% to reach $4.2 billion by 2027.
The internet advertising sector is projected to experience a 12% CAGR, with revenues climbing from $4.4 billion in 2022 to $7.9 billion by 2027. Within this sector, the mobile segment is expected to grow at a CAGR of 14%, boosting revenues from $3.1 billion to $5.8 billion.
The consumer book market in India is expected to increase at a CAGR of 3.7% between 2022 and 2027, with revenues growing from $1.1 billion to $1.3 billion. Most of the growth will come from the electronic books sector, which is projected to increase at a 10% CAGR. Printed books will experience more modest growth at a 1.7% CAGR, although they still account for 80% of the market’s revenue in 2022, with electronic books comprising the remaining 20%.
The music, radio, and podcasts market in India reached revenues of $1.1 billion in 2022 and is forecasted to reach $1.5 billion by 2027.
The report also highlights the potential for growth in emerging areas, particularly in rural areas with a historically underserved population and a strong demand for local and sports content. The nationwide rollout of 5G capability and increased smartphone ownership present significant opportunities in India’s mobile-first market.
However, low broadband penetration in India remains a challenge, standing at just 10.8% in 2022 and projected to expand to only 14% by 2027. The report emphasizes that investment in improved broadband infrastructure is crucial for unlocking the full potential of the streaming market.
The report also mentions the utilization of generative AI, enabling brands to reach diverse language and regional audiences through adaptable templates. Additionally, it highlights the adoption of emerging technologies such as AI, machine learning, the metaverse, augmented reality (AR), and virtual reality (VR), which are expected to bring significant disruption to the media industry.
The PwC report concludes by emphasizing the importance for traditional media and entertainment businesses to adopt appropriate growth strategies and stay relevant amidst increasing competition from digitally powered enterprises.