India’s entertainment, media industry to reach $19.2 billion by 2028: PwC

The entertainment and media industry in India is projected to grow at a compound annual growth rate (CAGR) of 8.3% to Rs3.65 trillion (about $19.2 billion) by 2028, a PwC report released on Monday said.

With improved connectivity, rising advertising revenues and favorable government policies on foreign direct investment (FDI), India will see one of the highest growth in the entertainment and the media industry in the next five years, the consultancy’s ‘Global Entertainment and Media Outlook 2024–28: India perspective’ report said.

The country’s large millennial and Gen-Z population base of over 910 million has access to the world’s cheapest data costs, the study noted, observing that Indians are spending 78% of their time on entertainment and media apps on their phones.

“Digital advertising, over-the-top (OTT) platforms, online gaming, and generative AI are shaping the future of the industry,” Manpreet Singh Ahuja, chief digital officer and technology, media, and telecom (TMT) leader at PwC India, said.

With growing consumption and widening gross domestic product (GDP) growth, the advertising market in India is projected to grow at an annual average of 9.4% from Rs1.01 trillion in 2023 to Rs1.58 trillion in 2028, which is 1.4x the global average, the study said.

Most of this growth will come from digital such as internet advertising, which is expected to grow at a 15.6% CAGR from Rs41,000 crore in 2023 to Rs85,000 crore in 2028.

Internet advertising’s year-on-year growth, which was 26% last year, will remain in the double digits throughout the forecast period (from 2024–28), and is expected at 12.2% in 2028.

The shift towards cord-cutting, where consumers cancel or forego traditional cable or satellite television subscriptions in favor of alternative, typically less expensive, streaming or internet-based services, is expected to accelerate, the study pointed out.

Traditional TV advertising will grow at an annual average growth rate of 4.2% between 2023 to 2028, while global revenues are set to drop by -1.6%, it added.

India is also poised to become the fourth-largest TV advertising market by 2026.

Globally, entertainment and media industry revenues grew 5.5% year-on-year (y-o-y) from Rs138.9 trillion in 2022 to Rs173.6 trillion in 2023, despite economic challenges and geopolitical tensions, the study said, while highlighting that the US leads in global revenues, followed by China and India in the ninth place.

The 2024 outlook for India’s entertainment and media sectors shows strong growth, particularly in online gaming, e-sports, and OTT platforms, which are expected to double in revenue by 2028.

These sectors are expected to benefit from innovations such as real money gaming and strategies that focus on regional and advertising-supported content, enhancing viewer engagement and market reach.

Additionally, other media areas such as out-of-home advertising and the cinema sector are also projected to grow, backed by infrastructure improvements and increasing content consumption.

Music revenue is similarly on the rise, driven by both live performances and digital sales.

Strategic recommendations for these sectors include leveraging generative AI to transform content creation and personalization, aiming for hyper-personalized content and dynamic advertising campaigns.