The Indian media and entertainment industry is projected to grow at CAGR of 8.3 percent to hit Rs 3,65,000 Crore outpacing the global rate of 4.6 percent, according to PwC India’s report ‘Global Entertainment & Media Outlook 2024–28: India perspective’.
Despite economic challenges and geopolitical tensions, global E&M revenues grew 5.5 percent year-on-year, from Rs 13,891,000 crore in 2022 to Rs 17,359,000 crore in 2023. Currently, the US leads the global E&M market by revenue, with China in the 2nd place and India at the 9th.
Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India commented, “India’s Entertainment & Media sector is on the cusp of a major transformation. The 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.”
With India’s improved connectivity, rising advertising revenues and favourable government policies around foreign direct investment (FDI), the country is predicted to see one of the highest growth rates in the next five years. The country’s large millennial and Gen-Z population base of over 91 crore has access to the world’s cheapest data costs.
At present, India has 80 crore broadband subscriptions, 55 crore smartphone users and 78 crore internet users. In fact, Indians are spending 78 percent of their time on mobile phone apps related to E&M.
With growing consumption and gross domestic product (GDP) growth in India, the advertising market is projected to grow at a 9.4% CAGR from Rs 1,01,000 crore in 2023 to Rs 1,58,000 crore in 2028, which is 1.4x the global average. Most of this growth will come from digital front (internet advertising), which is expected to grow at a 15.6 percent CAGR, rising 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 percent in 2023, will remain in double digits throughout the forecast period (2024–28), and is expected to be 12.2 percent in 2028.
This shift towards cord-cutting is expected to accelerate. Traditional TV advertising will grow at a 4.2 percent CAGR between 2023 to 2028, while global revenues are set to drop by 1.6 percent. India is poised to become the fourth-largest TV advertising market by 2026.
As per report, 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 percent. 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 in 2023 and is expected to reach Rs 66,000 crore by 2028 at a CAGR of 14.5 percent. Globally, video games and esports revenue will increase at a CAGR of 8.0 percent.
In addition to this, over-the-top (OTT) will be the third-fastest growing segment with a CAGR of 14.9 percent, putting the country in lead by 2028. Infrastructure enhancements have supported massive growth in India’s out-of-home (OOH) advertising market which grew by 12.9 percent in 2023. It is expected to continue to grow at a 7.6 percent CAGR.
When it comes to print advertising revenues, despite a global decline at a CAGR of 2.6 percent, India’s market is expected to grow at a rate of 3 percent, making it the third largest print market in the world by 2028. Meanwhile, India’s cinema market continues to expand, growing at a 14.1 percent CAGR. The total music (live, recorded and digital) revenue grew from Rs 2,416 crore in 2019 to Rs 6,686 crore in 2023. It is expected to cross Rs 10,899 crore by 2028, growing at a CAGR of 10.3 percent.
At a 5.6 percent CAGR, India will stand out as having the highest B2B revenue growth rate in the world over the next five years. In contrast, global B2B revenue growth is forecasted at a 1.9 percent CAGR.
Furthermore, internet advertising emerges as the fastest-growing market in Asia-Pacific and the second globally, with a projected 15.6 percent CAGR (2023–2028). OTT platforms in India saw a 20.9 percent rise in 2023, reaching Rs 17,496 crore, and are projected to double by 2028.
Online gaming and esports are rapidly expanding, projected to represent 9 percent of the E&M sector by 2028. Promoting responsible gaming and investing in high-quality AAA games will position Indian studios on the global stage. Lastly, generative AI (GenAI) is set to transform content creation, personalisation and monetisation, with over 70 percent of global companies expected to adopt it by 2025. Early adoption of GenAI in India can drive hyper-personalised content and dynamic advertising campaigns.