India will continue to be the fastest-growing media and entertainment market in the world and is expected to grow at a CAGR of 10.75 per cent in 2020-25 to touch the $55.4 billion- mark (₹412,656 crore) compared to the global average CAGR of 5 per cent, according to the latest report by PwC. New age segments like internet advertising, OTT, gaming, digital music and podcast among others will witness double-digit growth during this period, the report added.
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, “Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience. Our outlook shows that the demand for great, localised content, increased internet penetration and the creation of new business models will drive the industry’s growth for the next five years.”
TV advertising will continue to be one of the largest revenue-contributing segments and is expected to grow at 7.6 per cent CAGR and get to ₹50,586 crore levels by 2025. However, with India being the fastest-growing internet advertising market, the segment is expected to grow at a CAGR of 18.8 per cent to touch ₹30,471 crore by 2025 backed by increased penetration of smartphones and adoption of digital platforms. Mobile internet advertising segment alone will grow at 25.4 per cent CAGR.
Cinemas, which saw box office revenues plunging by 75 per cent year-on-year in 2020 to ₹2,652 crore due to Covid-induced restrictions, are expected to bounce back. According to the PwC report, the cinema segment is expected to grow at a CAGR of 39.3 per grossing ₹13,857 crore by 2025-end. The high growth rate is also due to a low base in 2020 due to the massive decline in box office collections.
“The cinema segment will bounce back in 2021 with 123 per cent growth. It will be back to pre-Covid levels by mid of 2023 in India. While about 1,500 single-screen cinemas are expected to shut down this year, we expect these to be compensated by the addition of multiplex screens. But with the emergence of OTT segment, there are bound to be shifts in terms of the kind of movies that hit the theatres and the kind of movies that will move to streaming platforms,” Basu added.
India is expected to become the third-largest video-on-demand (OTT) market in Asia-Pacific after China and Japan by 2025, growing at 17.5 per cent CAGR. The subscription video-on-demand segment alone is expected to grow at 18.3 per cent CAGR from 2020 to 2025, growing to $2.7 billion.
While the growth of the newspaper and consumer magazine segment is expected to decline globally over the next five years, in India the segment is expected grow at 1.82 per cent upto 2025.
“The gaming market in India continues to enjoy exceptional growth. Video games and e-sports revenue reached ₹11,250 crore in 2020 and is set to expand to ₹24,213 crore in 2025, at 16.5 per cent CAGR,” the PwC report added. The Hindu BusinessLine