India (Commonwealth Union)_ According to a report by PwC, the Indian entertainment and media (E&M) industry is poised to experience remarkable growth, projected to reach $73.6 billion by 2027, with a compound annual growth rate (CAGR) of 9.7%. The industry is undergoing transformation due to shifting consumer preferences, increased internet accessibility, and the emergence of cutting-edge technologies. Despite a slowdown in global entertainment and media revenue, India demonstrated resilience, achieving an impressive 15.9% growth to reach $46,207 million in 2022 compared to 2021. The outlook for the country remains optimistic, with an expected CAGR of 9.7% in the following years, leading to an estimated revenue of $73,560 million by 2027.
A key factor contributing to the expansion of India’s E&M industry is the emergence of over-the-top (OTT) platforms, the gaming sector, traditional TV, the internet, out-of-home (OOH) advertising, and the metaverse. Further, the commercial launch of 5G services in 2022 also accelerated the industry’s growth, facilitating new offerings from international players and driving up OTT revenue, which climbed to $1.8 billion in 2022. According to Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media, and Telecom at PwC India, the adoption of emerging technologies such as Artificial Intelligence (AI) and Machine Learning (ML) has great potential to make significant transformations in the industry. These technologies are expected to expand the industry’s applications and cause significant disruptions.
Rajib Basu, Partner and Leader, Entertainment, and Media at PwC India, expressed optimism over the rapid growth in the Indian media and entertainment sector, particularly as the industry underwent a reset after the pandemic. He added that with the rising penetration of mobile devices and digital technology usage, traditional media and entertainment businesses must devise appropriate strategies to challenge the digitally powered ventures. The report also highlighted the potential for industry deals to expand, pointing out the Competition Commission of India’s approval of a $10 billion deal between two media conglomerates in February 2023. This agreement aims to establish one of the largest conglomerates in India, covering television channels, digital platforms, and content production.
Further, India has notably emerged as the fastest-growing newspaper market, defying global trends, with a CAGR of 3.212% for both print and digital sectors. Moreover, the OTT and connected TV markets in India also show promising long-term potential owing to the country’s size and diverse population. Additionally, the gaming and e-sports market in India also shows a promising future and is poised for significant growth, with projections indicating India will emerge as one of the fastest-growing markets globally for e-sports, with a market revenue estimation of $21 million by 2027.
Further, generative AI is expected to play a major role in reaching India’s diverse population with localized messaging, enabling brands to adapt generic templates to various languages and regions. Overall, the Indian entertainment and media industry is experiencing robust growth, catalyzed by breakthrough technological developments and changing consumer behavior. Further, the convergence of digital platforms, innovative content, and strategic collaborations is also shaping the industry’s promising future.
