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India’s E&M industry expected to grow at a CAGR of 10.1% to reach US$55 Bn by 2024: PwC India Report PWC

India’s E&M industry expected to grow at a CAGR of 10.1% to reach US$55 Bn by 2024: PwC India Report

India Blooms News Service | @indiablooms | 22 Oct 2020, 06:43 pm

According to PwC’s Global Entertainment & Media Outlook 2020-2024, the Indian E&M industry’s long-term outlook remains robust as it is expected to grow at 10.1% CAGR to reach 55 billion USD by 2024. A K-shaped bifurcated recovery is on the horizon in which sectors like OTT, internet advertising, video/games/e-sports, and music and podcasts are expected to spearhead growth in the industry.  Globally, Digital revenue is expected to contribute 60% to the total E&M revenue by 2020, alone.

In terms of individual segment market size as a percentage of total E&M revenue, OTT video in India is expected to see the largest gain and reach 5.2% by 2024, closely followed by internet advertising. Segments like advertising and those dependent on physical locations are likely to be further impacted in a negative manner whereas digital E&M spending will increasingly be regarded as a non-discretionary expense. While globally, newspapers and magazines are dropping the free online model and starting to ask readers to pay for quality content online, digital paywalls are yet to become commonplace in India. Furthermore, while India will remain the world’s biggest cinema market in admission terms, cinema revenue in India will contract at a -2.6% CAGR to total US$1.5bn over the next 5 years.

Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, “ "We find ourselves in extraordinary times, and the pandemic has accelerated ongoing shifts in consumers’ behaviour, pulling forward digital disruption and reaching industry tipping points that wouldn’t otherwise have been reached in the next few years. Our research shows that India will be the fastest growing entertainment and media market globally in terms of pure consumer revenue.”

Coming out of COVID-19, a K-shaped bifurcated recovery  is expected in which some sectors rise while others fall. Over the next 5 years, the outlook remains highly positive for digital led segments such as OTT, Internet Advertising, Online Gaming and Music & Podcasts that were perfectly positioned to meet consumers where they are in 2020 - predominantly at home and online.

However, companies simultaneously have to prepare to meet them where they will be two years from now. They will need to build and maintain direct-to-consumer relationships, offer enough differentiation or scale to compete, and unlock greater value using the right technologies. This is a unique window of opportunity for E&M businesses to transform and make themselves more resilient and relevant for the future.” added Rajib Basu.