India’s entertainment and media industry is expected to touch $73.6 billion by 2027, growing at 9.48 per cent CAGR, according to PwC’s Global Entertainment & Media Outlook 2023-2027. This growth will be led by segments such as internet advertising, OTT, video games, and e-sports.
On the back of new launches from international players and increasing pay-lite options, OTT segment revenue surged in 2022 to reach $1.8 billion. The market will continue to grow at an impressive rate, increasing at a 14.3 per cent CAGR with projected revenue of $3.5 billion in 2027. “ Although subscription service revenue will expand at a 13 per cent CAGR to reach $2.6 billion, advertising-supported services (AVOD) will grow at a higher rate, albeit from a lower base,” the report noted.
India is the second-fastest-growing video games market in the world, with revenue of $1.7 billion in 2022, and is expected to reach $4.2 billion by 2027, increasing at a formidable 19.4 per cent CAGR.
“The Indian Internet advertising market is among the fastest-growing in the world, with a 12.3 per cent CAGR expected to see total revenue climb from $4.4 billion in 2022 to $7.9 billion by 2027,” the PwC report noted.
The country’s TV advertising market recovered strongly from the Covid pandemic downturn, with revenue expanding 11.9 per cent in 2022 to reach $4.7 billion. “There remains considerable room for growth with advertisers keen to access India’s vast population and large live audiences. TV ad spend will grow at a 6.4 per cent CAGR to reach $6.5 billion in 2027. At this time, India will be the fourth-largest TV advertising market globally,” the report added.
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India, said: “The Indian media and entertainment outlook for the next few years will show an exciting pace of growth. We have a good view of how the industry has reset itself after the pandemic. Increased mobile penetration and the use of digital technologies are poised to disrupt existing channels and create new possibilities in the years ahead for the sector.”