The latest PwC Report highlights how the Indian entertainment and media sector has fared despite the challenges of the pandemic with TV advertising as one of the largest revenue contributing segments and more.
As per the latest Global Entertainment & Media Outlook 2021-2025, the 22nd annual analysis and forecast report of E&M spending by consumers and advertisers across 53 territories by PwC, India is one of the fastest-growing marketing in the Entertainment & Media industry and is expected to grow by 10.75% CAGR till 2025.
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India, said, “Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience. As we predicted last year, India is forecasted to be the fastest-growing entertainment and media market globally in terms of consumer and advertising revenue.”
“Technological advancement and deepening of internet access will continue to influence the way Indians consume content. Our Outlook shows that the demand for great, localized content, increased internet penetration and the creation of new business models will drive the industry’s growth for the next 5 years”, he added.
Some of the key findings for India include:
TV advertising: TV advertising has continued to expand in 2020, despite COVID, reaching INR 35015 Cr. India is the fourth-largest market globally after the US, China, and Japan. Television advertising will remain as one of the largest revenue contributing segments with a growth rate of 2x of the global average.
Internet advertising: India is the fastest-growing Internet Advertising market in the world at a CAGR of 18.8% during 2020-2025. The growth in mobile internet advertising revenue will be the highest with 25.4% CAGR 2020-25 to reach
US$3.04bn by 2025.
Newspapers & consumer magazines: This segment witnessed a decline as per the report. In 2020, print advertising revenue fell by 12.0% and print circulation revenue was down by 4.0%, mainly due to the pandemic. Digital magazine circulation and advertising revenue are set to increase between 2020 and 2025 from just INR 231 Cr to INR 358 Cr at a CAGR of 9.5%.
Cinema: Box-office revenues plunged by 75% year-on-year in a COVID-hit 2020 to INR 2652 Cr. Local producers turned to digital streaming to make up for the shortfall. The overall segment comprising box-office and cinema advertising is predicted to grow back to the pre-COVID level by mid of 2023.
OTT: With the COVID-19 pandemic, movie providers turned to a form of TVOD, premium video-on-demand (PVOD), to fulfill their title launch schedules. Overall, the OTT ad revenue will grow by 10% in 2020-25 CAGR.
From the other media channels, Music, Radio & Podcasts (19.1%) and Video games + e-sports (31.6%) will contribute significantly to the advertising revenue spike in India.
Werner Ballhaus, Global Entertainment & Media Industry Leader Partner, PwC Germany, said, “Even in the areas that offer the most compelling topline growth – like video streaming – the nature of competition is likely to change dramatically over the coming years. And all the while, the social, political, and regulatory context in which all companies operate continues to evolve in unpredictable ways. All of which means that sitting still, relying on the strategies that created value and locked up market share in the past, will not be the most effective posture going forward.”
You can access the complete report here: