India’s entertainment and media industry is expected to reach Rs.412,656 crore by 2025 at a CAGR of 10.75%, according to PwC’s Global Entertainment & Media Outlook 2021-2025, annual analysis and forecast of consumer and advertiser E&M spending in 53 territories.
Key findings for India in this year’s Outlook include:
TV advertising: TV advertising continued to grow in 2020, despite COVID, reaching Rs 35,015 crores. India is the world’s fourth largest market after the United States, China and Japan. Further expansion at a CAGR of 7.6% will bring TV advertising revenue to the level of Rs 50,586 crore in 2025. Multi-channel advertising will account for nearly 92% of the total TV advertising market in 2025. Online TV advertising will make inroads modest over the forecast period. , broadband penetration remaining extremely low at 7.3% of households.
internet advertising: India is the fastest growing internet advertising market in the world with a CAGR of 18.8% during the period 2020-2025. Mobile advertising revenue growth exceeded cable revenue in 2019 and is expected to account for 74.4% of total internet advertising revenue of Rs 30,471 crore by 2025. In 2020, mobile internet advertising revenue in India were Rs 7,331 crore and will reach Rs 22,350 crore by 2025 – growing at a CAGR of 25.4%. This makes India the fastest growing mobile advertising market in the world, reflecting the growth potential, with more than half of the population not yet having a mobile internet subscription in 2020.
Newspapers and magazines for the general public: In 2020, India’s consumer newspaper and magazine market was worth Rs 26,299 crore and is expected to have a CAGR of 1.82% through 2025. In 2020, print advertising revenue fell 12.0% and Print circulation revenues fell 4.0%, mainly due to the pandemic. Digital magazine circulation and advertising revenue is expected to increase between 2020 and 2025, from just Rs 231 crore to Rs 358 crore at a CAGR of 9.5%.
Cinema: Box office revenue plunged 75% year-over-year in a 2020 COVID-hit to Rs 2,652 crores. Local producers have turned to digital streaming to fill the gap. Box office revenue is expected to recover and grow at a CAGR of 39.3%, an increase of Rs 13,857 crore by the end of 2025. The overall segment comprising box office and cinema advertising is expected to return to pre-covid levels in mid-2023.
Music, radio and podcast: India’s total music, radio and podcast market revenues fell in 2020 to Rs 4,626 Cr, as the pandemic took nearly Rs 522 crore from the country’s live music industry. Digital channels represent almost 90% of the recorded music market. And, like elsewhere, streaming is the most popular category. Ad-supported streaming is the dominant digital product in India, generating Rs 1,088 crore in 2020, nearly double the amount reported in subscription revenue (Rs 581 crore). Global segment growth is forecast at 19.1% CAGR 2020-25 to reach Rs 11,026 crore.
Video games and esports: The gaming market in India continues to experience exceptional growth and shows enormous potential. Revenue from video games and e-sports reached Rs 11,250 crore in 2020 and is expected to grow to Rs 24,213 crore in 2025, at a CAGR of 16.5%. The Indian gaming market is dominated by the social / casual category, which accounted for 77% of all video game and esports revenue in 2020. The Indian esports market is small, but as awareness grows and, most importantly, As the supply of mobile esports strengthens, this sector will see rapid expansion, at a CAGR of 31.6% during the forecast period.
Other factors impacting the global E&M industry:
Generation change: young people will be served
It is not surprising that many young consumers have little awareness or interest in traditional media. On the other hand, media platforms designed for young consumers or which allow light and authentic content have exploded. Gaming is at the heart of the youth movement and is becoming a major driver of data consumption – in fact, it is fast becoming the fastest growing content category in this regard, accounting for 6.1% of the total. total data consumption worldwide by 2025, up from 4.7. % in 2020.
Regulatory changes: decline on platforms
Another change impacting E&M is the regulatory review of big tech. Antitrust pressures have increased with calls to dismantle major tech platforms as well as government proposals for new media regulations. Changes to current regulatory regimes are inevitable and it is vital that E&M actors integrate regulatory risks into their planning processes.
Rajib Basu, Partner and Leader – Entertainment and Media, PwC India said: “Despite the pandemic, India’s entertainment and media industry has shown remarkable resilience. As we predicted last year, India is expected to be the fastest growing entertainment and media market in the world. in terms of consumer income and advertising. Advances in technology and increased access to the Internet will continue to influence the way Indians consume content. Our outlook shows that the demand for quality and localized content, increased internet penetration and the creation of new industry models will grow over the next 5 years.
Werner Ballhaus, Global Entertainment & Media Industry Partner, PwC Germany, concluded: “Even in areas that offer the most compelling revenue growth, such as video streaming, the nature of the competition is likely to change drastically over the coming years. And meanwhile, the social, political and regulatory environment in which all businesses operate continues to evolve in unpredictable ways. All of this means that standing still, relying on strategies that have created value and blocked market share in the past, will not be the most effective posture in the future. “