MUMBAI: According to PwC Media and Entertainment (M&E) Outlook 2018-23 released by the research firm on Thursday, the Indian M&E sector is poised to grow at a compound annual growth rate (CAGR) of 11.28% over the next five years, and reach Rs 4.51 trillion by 2023.
This is significantly higher than the global M&E revenue growth projected at 4.3% for the same period. While new media platforms such as over-the-top (OTT) video and internet advertising are expected to lead the growth, traditional platforms such as TV and print continue to show growth.
Esports: India’s esports revenue is small at present but has strong potential with a calendar of well-supported events and leagues emerging. While outside sponsorship remains lower than global markets, this will see India’s esports sector increase at a 36.8% CAGR to the end of the forecast period. The main challenge for the segment has been poor online infrastructure, which has historically restricted growth. However, with improvements in infrastructure, this is expected to improve significantly in the near future.
OTT video: India’s OTT video market will grow at a 21.8% CAGR from Rs 4,464 crore in 2018 to Rs 11, 976 crore in 2023 with subscription video on demand set to increase at 23.3% CAGR. India’s OTT video market is expected to overtake that of South Korea to become the eighth-biggest market in the world by 2023
Internet advertising: Total Internet advertising revenue for India in 2018 was Rs 8, 150 crore, a 40.2 per cent year-on-year increase from 2017. The ICC World Cup and elections in 2019 are expected to boost advertising spends in 2019. Internet advertising is forecast to be worth Rs 18, 445 crore in 2023
Rajib Basu, partner & leader – Entertainment & Media, PwC India, said: “India is the fastest growing entertainment and media market globally and is expected to keep that momentum. Our research shows that in the next five years India will see significant growth in OTT, online gaming and Internet advertising.
“Growth in these sub-sectors spurs from the growing trends around personalization and increased digitalization. Today’s consumer can now control their own media consumption through an expanding range of smart devices and curate their personal selection of channels using OTT services. Content is being pitched not at audiences of billions but separately at billions of individuals.
“The soon to arrive 5G networks will create further use cases, enhance user experiences and create disruptions leading to newer business opportunities. Long-term players in the Entertainment and Media space need to gear up to take advantage of such opportunities.”
