India’s entertainment and media industry is expected to reach a staggering Rs 6,828,944 crore ($73.6 billion) by 2027.
This remarkable growth is attributed to the surge in popularity of over-the-top (OTT) platforms in the country, according to PwC’s Global Entertainment and Media Outlook 2023-2027.
The revenue from OTT platforms experienced a significant increase of 25.1 percent in 2022 alone, reaching Rs 148,554 crore ($1.8 billion).
The report highlighted that this surge in revenue is over six times the amount generated in 2018, indicating the rapid growth of the OTT market. It further predicted that the industry will continue to expand at an impressive rate, with a projected compound annual growth rate (CAGR) of 14.3 percent, resulting in revenue of Rs 2,88,855 crore ($3.5 billion) by 2027.
The competitive sector of subscription-video on demand (SVOD) played a pivotal role in driving the market revenue in 2022, accounting for 78.1 percent of the total. Although subscription service revenue is expected to grow at a CAGR of 13 percent, reaching Rs 214,578 crore ($2.6 billion), advertising-supported services (AVOD) are projected to grow at a higher rate, albeit from a lower base.
Emerging technologies like artificial intelligence and machine learning, as well as the metaverse, will disrupt the media industry. “Media and entertainment enterprises to invest in transformational ideas of the future to stay relevant to their audiences,” Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media, and Telecom at PwC India, said.
The report also shed light on the growth of India’s video games and esports sector. With a CAGR of 19.4 percent, the revenue is anticipated to surge from Rs 140,301 crore ($1.7 billion) in 2022 to Rs 346,626 crore ($4.2 billion) by 2027. Factors such as increased mobile penetration and the adoption of digital technologies are expected to create new possibilities and disrupt existing channels in this sector.
The Indian Internet advertising market is also experiencing substantial growth, with a CAGR of 12.3 percent. It is projected to witness total revenue climb from Rs 363,132 crore ($4.4 billion) in 2022 to Rs 651,987 crore ($7.9 billion) by 2027, solidifying its position as one of the fastest-growing advertising markets in the world.
Furthermore, the report highlighted that India’s consumer book market is set to increase at a CAGR of 3.7 percent between 2022 and 2027. The total revenue is expected to rise from Rs 90,783 crore ($1.1 billion) to Rs 107,289 crore ($1.3 billion), indicating a steady growth in the demand for books among Indian consumers.