The Indian media and entertainment industry is expected to exceed $40,000 million by 2020, growing at a compound annual growth rate (CAGR) of 10.3%, according to a report.

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"India's entertainment and media sector is expected to grow steadily over the next four years. The industry is expected to exceed $40,000 million by 2020 growing at a CAGR of 10.3% between 2016 and 2020," PwC's Global Entertainment and Media Outlook 2016-20 said.

It believes that TV advertising and subscription will grow at an overall CAGR of over 13% during 2016-20, aided by regulation-driven addressibility, increase in cable and satellite homes and slower than expected cannibalisation by growth in digital sector.

India is the second-largest subscription of TV market in the Asia-Pacific region in terms of household numbers, reaching 148.3 million subscription TV households in 2015.

It noted that the bulk of the growth in subscribers will be driven by the satellite direct to home (DTH) platform, adding over 12 million households in the next five years.

TV subscription revenue reached $7.33 billion in 2015, up from $4.81 billion in 2011 and the report said with the growth rate showing little sign of abating, TV subscription revenue is increasing at 12.6% CAGR and is expected to reach $13.29 billion in 2020.

"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% CAGR. This will generate revenue of $5.54 billion in 2020, compared with $3.19 billion in 2015. The pace at which TV's reach has increased is seeing a shift in overall advertising budgets towards television," it said.

Multichannel TV advertising revenue reached $2.91 billion in 2015 and is expected to grow at 12.1% CAGR to generate revenue of $5.13 billion in 2020.

It observed that with the low base, revenues on the digital/internet platforms will grow at a significant pace but unlikely to take over traditional sectors during 2016-20.

"What would be more interesting is how rapidly India would catch up with global trends, where traditional media is finding it hard to remain relevant, and the digital sector is leading the growth trajectory and consequently bringing in continuous disruptions. That will all depend on how quickly the Indian digital/broadband ecosystem matures, and how the Indian players adapt and drive business models in what would be a rapidly changing environment for consumption of data/content fashioned largely by India's under-35 population," PwC India Partner and Leader - Entertainment and Media, Frank D'Souza said.

Paid search internet advertising revenue will continue to be India's largest internet advertising sub-component over the forecast period, the report said.

Paid search grew 26.7% year-on-year in 2015, reaching revenue of $211 million. With a forecast of 18.5% CAGR over the next five years, paid search Internet advertising revenue is expected to rise to $492 million by 2020.

Online spend on display ads in India has witnessed strong growth and revenue has almost tripled since 2011, reaching $200 million in 2015.

On the publishing side, it observed that 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 strong desire to consume news and content in local languages, combined with nascent digital/broadband penetration, would fuel the growth and keep it relevant over the 2016-20," it said.

In 2015, the overall publishing revenues were at $6,133 million, an increase of $302 million over 2014.