Media And Entertainment to Be Rs 3.65 Lakh Crore Industry By... - PwC Report

The Indian Entertainment and Media industry is projected to grow at a compound annual growth rate (CAGR) of 8.3 per cent to reach Rs 3.65 lakh crore outpacing the global rate of 4.6 per cent by 2028, according to a report by PwC India.

According to the report, currently the US is leading the global entertainment and media market, with China in the second place and India at the ninth.

What Are The Factors Leading To The Growth Of The Industry?

India has improved its connectivity, increased its advertising revenues and has favourable government policies around Foreign Direct Investment (FDI) that support the growth of the industry. The country is therefore, predicted to see one of the highest growth rates in the next five years.

The country has a population base of over 91 crore that consists solely of millennials and Gen Z with access to the world's cheapest data costs. Currently, India has 80 crore broadband subscriptions, 55 crore smartphone users and 78 crore internet users, as per the report.

The report further notes that Indians spend about 78 per cent of their time on mobile phone apps related to entertainment and media.

With growth in consumption as well as GDP in India, the advertising market is projected to grow at a 9.4 per cent CAGR from Rs 101,000 crore in 2023 to Rs 158,000 crore in 2028 which is 1.4 times of the global average, the report said.

According to the report, most of the predicted growth is supposed to come in through the digital front or internet advertising, which is expected to grow at a 15.6 per cent CAGR from Rs 41,000 crore in 2023 to Rs 85,000 crore in 2028.

"Internet advertising’s year-on-year growth, which was 26.0% in 2023, will remain in double digits throughout the forecast period (2024–28), and is expected to be 12.2% in 2028," the report added.

The report also suggests that the shift toward cord-cutting is expected to accelerate as traditional TV advertising will only grow at 4.2 per cent CAGR between 2023 to 2028.

Over-the-top (OTT) will be the third-fastest growing segment with a CAGR of 14.9 per cent, putting the country in lead by 2028, the report added.

"The total online gaming and esports revenue in India stood at Rs 16,480 crore in 2023 and is expected to reach Rs 39,583 crore by 2028, growing at a CAGR of 19.2%. With the inclusion of real money gaming (as per PwC’s India Gaming Report ‘24) the total gaming and esports revenue would amount to Rs 33,000 crore (4BnUSD) in 2023 and is expected to reach Rs 66,000 crore (8BnUSD) by 2028 at a CAGR of 14.5%. Globally, video games and esports revenue will increase at a CAGR of 8.0%," the report further noted.

“India’s Entertainment & Media sector is on the cusp of a major transformation. According to our Global Entertainment & Media Outlook 2024-2028, key growth drivers such as digital advertising, OTT platforms, online gaming, and Generative AI are shaping the future of the industry. These rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape," Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India said.