India’s Entertainment Industry on a Meteoric Rise, Set to Soar at 9.48% and Cross $73.6 Billion by 2027. According to a recent report, India’s entertainment and media sector is projected to witness significant growth, reaching Rs 6,828,944 crore ($73.6 billion) by the year 2027. This expansion is primarily attributed to the rise of over-the-top (OTT) platforms, and the industry is anticipated to maintain a Compound Annual Growth Rate (CAGR) of 9.48 percent. The findings of the report were unveiled on Tuesday.
As per PwC’s ‘Global Entertainment and Media Outlook 2023-2027,’ the revenue generated by over-the-top (OTT) platforms has experienced significant growth in recent times. This surge in India’s Entertainment Industry can be attributed to the introduction of new services by international players and the rising popularity of “pay-lite” payment options. In 2022 alone, the OTT revenue expanded by 25.1 percent, reaching an impressive Rs 1,48,554 crore ($1.8 billion).
The report highlighted that the revenue in the current year is more than six times higher than that of 2018. Moreover, the market of India’s Entertainment Industry is expected to maintain its impressive growth trajectory, with a projected Compound Annual Growth Rate (CAGR) of 14.3 percent. By 2027, the revenue is estimated to reach an impressive Rs 2,88,855 crore ($3.5 billion).
India’s Entertainment Industry on a Meteoric Rise, Set to Soar at 9.48% and Cross $73.6 Billion by 2027
The main driving force behind this growth of India’s Entertainment Industry will be the competitive SVOD (subscription-video on-demand) sector, which dominated the market revenue with a significant share of 78.1 percent in the year 2022.
While subscription service revenue is projected to experience a commendable Compound Annual Growth Rate (CAGR) of 13 percent, resulting in a total of Rs 2,14,578 crore ($2.6 billion), advertising-supported services (AVOD) are expected to grow at a higher rate, albeit starting from a relatively lower base.
According to Manpreet Singh Ahuja, Chief Digital Officer and Leader – Technology, Media, and Telecom at PwC India, the increasing adoption of emerging technologies such as AI/ML and the metaverse will lead to the expansion of various use cases, inevitably causing disruptions in the media industry.
Media companies and content creators are actively striving to offer viewers more interactive and immersive experiences.
He further added that media and entertainment enterprises are anticipated to make substantial investments in transformative ideas of the future to ensure their relevance to their audiences.
The findings indicate that India’s combined revenue from video games and esports amounted to Rs 1,40,301 crore ($1.7 billion) in 2022. However, this figure is projected to grow significantly at a Compound Annual Growth Rate (CAGR) of 19.4 percent, reaching an impressive Rs 3,46,626 crore ($4.2 billion) by the year 2027.
Rajib Basu, Partner & Leader – Entertainment & Media at PwC India, emphasized that the growing mobile penetration and the widespread adoption of digital technologies are set to cause disruptions in existing channels while also unlocking new possibilities for the sector in the coming years.
The Indian Internet advertising market is witnessing remarkable growth, ranking among the fastest-growing globally. It is projected to maintain a Compound Annual Growth Rate (CAGR) of 12.3 percent, leading to a substantial increase in total revenue from Rs 3,63,132 crore ($4.4 billion) in 2022 to Rs 6,51,987 crore ($7.9 billion) by the year 2027.
According to the report, India’s consumer book market is expected to grow at a Compound Annual Growth Rate (CAGR) of 3.7 percent from 2022 to 2027. During this period, the total revenue of the market is anticipated to rise from Rs 90,783 crore ($1.1 billion) to Rs 1,07,289 crore ($1.3 billion).
Read More- Bhuvan Bam’s Taaza Khabar OTT Release Date: All Details About the Endless Joy Series
