Media, entertainment industry to exceed Rs 291,000 cr by 2021

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India’s entertainment and media sector is expected to surpass Rs 291,000 crore by 2021 growing at a compound annual growth rate (CAGR) of 10.5 percent between 2017-2021, according to a report by PricewaterhouseCoopers (PwC).

TV subscription revenues are expected to grow from Rs 52,755 crore in 2016 to Rs 90,713 crore in 2021 at a CAGR of 11.6 per cent. In terms of advertising, TV will continue to hold the larger share of the pie from Rs 21,874 crore in 2016 to Rs 37,315 crore in 2021, even though internet advertising is expected to growth at a much faster rate of 18.6 per cent as opposed to TV advertising at 11.1 per cent from 2017-2021.

Indian cinema will witness a rise of 10.4 per cent of CAGR between 2017-2021 as box office revenue will rise from Rs 10,957 crore in 2016 to Rs 18,047 crore in 2021. This is one of the few major cinema markets in which 100 per cent digitisation of screens has not yet been achieved – and it is not expected to occur over the forecast period.

Ticket prices for films will rise at a CAGR of 7.9 per cent in the same period.

Publishing in India is expected to grow from Rs 38,601 crore in 2016 to Rs 44,391 crore in 2021 at a CAGR of 3.1 per cent. Book publishing, in particular, is projected to grow at 6.1 per cent CAGR whereas magazines are expected to grow at a CAGR of 3.3 per cent.

The Indian newspaper industry will grow from Rs 23,161 crore in 2016 to Rs 24,447 crore in 2021, but the growth rate is tailing off as the effects of digital disruption begin to be felt in a market that had long enjoyed print expansion, a statement read.

“Being the least digitised market, will allow the traditional media to grow without being disrupted by digital competition. Whereas one may be tempted to conclude that India’s growth in this sector is divergent from the world’s, it will do well for Indian players to keep their eyes on changing landscape globally and prepare for its eventual impact on the Indian market,” said Frank D’Souza, Partner and Leader – Entertainment and Media, PwC India.

In terms of internet advertising revenue, India is ranked eighth in the Asia Pacific region. One reason behind immature online ad marketing is the lack of internet access among Indians — with fixed broadband penetration remains low at just 6.9 per cent in 2016.

Interestingly, the mobile internet advertising has only comprised 27.6 per cent of total online spending. India’s internet video segment has produced revenues of Rs 560 crore in 2016 and will grow at 22.4 per cent CAGR to reach a new high of Rs 1,540 crore in 2021.

Transactional video-on-demand will account for over 61 per cent of total internet video revenues in 2021.

Global E&M revenues are expected to rise from $1.8 trillion in 2016 to $2.2 trillion in 2021 at a compound annual growth rate (CAGR) of 4.2 percent. By comparison, PwC’s 2017 Outlook expects U.S. E&M revenues to reach $759 billion by 2021, up from $635 billion in 2016, increasing at a CAGR of 3.6 percent.

Eight emerging technologies will have the potential to improve user experience: augmented reality (AR)/virtual reality (VR); artificial intelligence (AI); Internet of Things (IoT); Big Data/data analytics; cloud; 3D printing; access, not ownership; and cybersecurity.

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