The PwC Global Entertainment & Media Outlook 2018-2022 released last week predicts growth at a CAGR of 11.6% for the Indian Entertainment & Media industry, to be led by increasing device penetration and lower Internet prices, which will in turn drive consumer demand for content.
While smartphone data consumption is set to grow at a CAGR of 90.4% for 2017-2022, the number of high-speed mobile Internet connections are expected to increase by 2.2 billion globally by 2022, with total global data consumption via smartphones overtaking fixedbroadband data consumption by 2020.
The rapid growth is expected to come on the back of digitally-driven segments, with virtual reality leading the way. India is projected as the fastest growing market (excluding Internet access), growing at a CAGR of 11.7% through 2022. The fastest growing segments in India are data consumption (non-revenue), OTT and Internet advertising. However, while OTT is one of the fastest growing segments, traditional TV and home video will still hold the largest share of the Indian entertainment and media market through 2022. Moreover, despite a global decline in newspaper revenue, India’s newspaper revenue is expected to grow at a CAGR of 4.4% on the back of expanding literacy rates, rural economic growth, regional news demand and low cover prices.
“While it is not surprising that India continues to be one of the fastest growing entertainment and media markets globally, what is encouraging is how non-linear media is expected to grow on the back of increase in device penetration, lower Internet prices, consumer content demand and portability preferences. This will manifest in significant growth in OTT, e-sports and Internet advertising.”
FRANK D’SOUZA
Partner & Leader - Entertainment & Media, PwC India
SOME NUMBERS
CINEMA: Total cinema revenue is expected to rise at a 9.4% CAGR, with number of screens in India expected to increase to 12,775 screens in 2022, up from 11,672 in 2017 at a 1.8% CAGR. Digital screens are expected to touch 5,532 in 2022, up from 3,524 in 2017, growing at 9.4% CAGR
OTT (OVER-THE-TOP) VIDEO: OTT video revenue has grown rapidly to reach Rs 2019 cr in 2017 and is expected to grow at a 22.6% CAGR, making India one of the top 10 largest global OTT video markets in 2022 with a revenue of Rs 5595 cr. Subscription-based video on demand is expected to make up 79.4% of total market revenue by 2022
VIDEO-GAMING: While the traditional Indian gaming market is growing at a CAGR of 4%, the segment is expected to grow by 55.9% CAGR over the forecast period from Rs 1645 cr to Rs 14,772 cr by 2022. India will be amongst top 10 video games market countries with respect to revenue by 2022
INTERNET ADVERTISING: Total Internet advertising revenue hit Rs 6513 cr in India in 2017, up 25.4% over 2016. Over the next five years, total revenue is expected to touch Rs 13,500 cr, driven by strong growth in mobile and paid search Internet advertising. Mobile video advertising is the fastest-growing, with a CAGR of 32.8% to 2022, with revenue touching Rs 2155 cr in 2022
NEWSPAPER REVENUE: Despite a global decline in newspaper revenue, India’s newspaper revenue is expected to grow at 4.4% CAGR
While smartphone data consumption is set to grow at a CAGR of 90.4% for 2017-2022, the number of high-speed mobile Internet connections are expected to increase by 2.2 billion globally by 2022, with total global data consumption via smartphones overtaking fixedbroadband data consumption by 2020.
The rapid growth is expected to come on the back of digitally-driven segments, with virtual reality leading the way. India is projected as the fastest growing market (excluding Internet access), growing at a CAGR of 11.7% through 2022. The fastest growing segments in India are data consumption (non-revenue), OTT and Internet advertising. However, while OTT is one of the fastest growing segments, traditional TV and home video will still hold the largest share of the Indian entertainment and media market through 2022. Moreover, despite a global decline in newspaper revenue, India’s newspaper revenue is expected to grow at a CAGR of 4.4% on the back of expanding literacy rates, rural economic growth, regional news demand and low cover prices.
“While it is not surprising that India continues to be one of the fastest growing entertainment and media markets globally, what is encouraging is how non-linear media is expected to grow on the back of increase in device penetration, lower Internet prices, consumer content demand and portability preferences. This will manifest in significant growth in OTT, e-sports and Internet advertising.”
FRANK D’SOUZA
Partner & Leader - Entertainment & Media, PwC India
SOME NUMBERS
CINEMA: Total cinema revenue is expected to rise at a 9.4% CAGR, with number of screens in India expected to increase to 12,775 screens in 2022, up from 11,672 in 2017 at a 1.8% CAGR. Digital screens are expected to touch 5,532 in 2022, up from 3,524 in 2017, growing at 9.4% CAGR
OTT (OVER-THE-TOP) VIDEO: OTT video revenue has grown rapidly to reach Rs 2019 cr in 2017 and is expected to grow at a 22.6% CAGR, making India one of the top 10 largest global OTT video markets in 2022 with a revenue of Rs 5595 cr. Subscription-based video on demand is expected to make up 79.4% of total market revenue by 2022
VIDEO-GAMING: While the traditional Indian gaming market is growing at a CAGR of 4%, the segment is expected to grow by 55.9% CAGR over the forecast period from Rs 1645 cr to Rs 14,772 cr by 2022. India will be amongst top 10 video games market countries with respect to revenue by 2022
INTERNET ADVERTISING: Total Internet advertising revenue hit Rs 6513 cr in India in 2017, up 25.4% over 2016. Over the next five years, total revenue is expected to touch Rs 13,500 cr, driven by strong growth in mobile and paid search Internet advertising. Mobile video advertising is the fastest-growing, with a CAGR of 32.8% to 2022, with revenue touching Rs 2155 cr in 2022
NEWSPAPER REVENUE: Despite a global decline in newspaper revenue, India’s newspaper revenue is expected to grow at 4.4% CAGR
