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PwC Report: Indian Entertainment and Media Industry Projected to Reach $73.6B by 2027

• ByStartupStory     |    July 19, 2023

The Indian entertainment and media industry is set to witness significant growth, reaching $73.6 billion by 2027, with a compound annual growth rate (CAGR) of 9.7%, as per a report by PwC. The industry is being reshaped by evolving consumer preferences, increased internet access, and emerging technologies.

While the global entertainment and media revenue experienced a slowdown, India showed resilience, achieving a remarkable 15.9% growth to $46,207 million in 2022 compared to 2021. The forecast for the country is optimistic, with an anticipated CAGR of 9.7% in the coming years, leading to a projected revenue of $73,560 million by 2027.

A significant factor contributing to India’s E&M industry’s expansion is the rise of over-the-top (OTT) platforms, the gaming sector, traditional TV, internet, out-of-home (OOH) advertising, and the metaverse. The launch of commercial 5G services in 2022 further catalyzed the industry’s growth, enabling new launches from international players and increased OTT revenue, which surged to $1.8 billion in 2022.

Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media, and Telecom at PwC India, highlighted the adoption of emerging technologies such as AI and ML, which will broaden the industry’s use cases, leading to significant disruptions.

Rajib Basu, Partner and Leader, Entertainment, and Media at PwC India, expressed excitement over the pace of growth in the Indian media and entertainment outlook, especially as the industry reset itself post-pandemic. With increased mobile penetration and digital technology use, traditional media and entertainment businesses must adopt the right strategies to compete with digitally powered ventures.

The report also emphasized the potential for deals to gain scale in the industry, highlighting the Competition Commission of India’s approval of a $10 billion merger between two media conglomerates in February 2023. This merger is set to create one of India’s largest conglomerates, spanning television channels, digital platforms, and content production.

India has also emerged as the fastest-growing newspaper market, bucking global trends, with a CAGR of 3.212% for both print and digital segments. Additionally, the OTT and connected TV market in India holds tremendous long-term potential due to the country’s size and diverse population.

The gaming and e-sports market is poised for significant growth, with India expected to become one of the fastest-growing markets globally for e-sports, reaching a market revenue forecast of $21 million by 2027.

Generative AI will play a crucial role in reaching India’s diverse population with localized messaging, allowing brands to adapt generic templates to various languages and regions.

Overall, the Indian entertainment and media industry is on a path of robust growth, driven by technological advancements and evolving consumer behavior.

 

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