Growing at a compound annual growth rate (CAGR) of 10.3 per cent between 2016 and 2020, India’s entertainment and media sector is expected to exceed $40 billion by 2020, according to PwC’s Global Entertainment & Media Outlook 2016-20.
“Given India’s overall growth in GDP and PCI, it is not surprising that India is amongst the top 10 markets for growth in the sector. Although in India traditional media like newspaper publishing and cinema have always shown strong growth, we expect that even in terms of absolute total dollar spend, it should get into the top 10 in the early part of the next decade,” said Frank D’Souza, Partner & Leader - Entertainment & Media, PwC India.
Here are the sector-wise findings of the study:
Cinema: China expected to be close to overtaking India as the biggest cinema market by 2020. In terms of admissions, India is currently the biggest cinema market in the world. It will remain so until the end of the forecast period, although China is expected to be close to overtaking it at that point. In 2015, admissions were at an estimated 2.04 billion, and in 2020 are predicted to be at 2.80 billion, rising at a 6.6 per cent CAGR. Box office revenue in India stood at an estimated $1.64 billion in 2015 and will rise to $2.74 billion in 2020, at a 10.9 per cent CAGR.
Internet Advertising : Paid search Internet advertising revenue is, and will continue to be, India’s largest internet advertising sub-component over the forecast period. Paid search grew 26.7 per cent year on year in 2015, reaching revenue of $211 million. With a forecast of 18.5 per cent CAGR over the next five years, paid search Internet advertising revenue will rise to $492 million by 2020. Online spend on display ads in India has witnessed strong growth in the historic period and revenue has almost tripled since 2011, reaching $200 million in 2015.
TV Advertising: Digital upgrades are focused primarily on the cable and satellite sectors. Indian TV advertising revenue has consistently grown throughout the global recession and India will be one of only seven countries to achieve double-digit growth over the forecast period at an 11.7 per cent CAGR. This will generate revenue of $5.54 billion in 2020, compared with $3.19 billion in 2015. Multichannel TV advertising revenue reached $2.91 billion in 2015 and will grow at a 12.1 per cent CAGR to generate revenue of $5.13 billion in 2020.
Publishing: Where global trends in magazine, books and newspaper publishing combined are at a near flat or negative growth trajectory, Indian publishing remains one of the fastest growing the world. Demographics, ever increasing literacy rates, educational needs, and the desire to consume news and content in local languages, combined with nascent digital/broadband penetration, would fuel growth and keep it relevant over 2016-20. In 2015, the overall publishing revenues were at $6.13 billion, an increase of $302 million over 2014.
