India's entertainment & media industry is expected to grow at a compound annual growth rate (CAGR) of 9.48% to reach $73.6 billion by 2027, according to PwC.

With new launches from international players and increasing "pay-lite" options, OTT revenue has surged in recent years, expanding a further 25.1% in 2022 to reach $1.8 billion. This is over six times the revenue of 2018, PwC notes in its Global Entertainment & Media Outlook 2023-2027.

The OTT market will continue to grow at a 14.3% CAGR to produce revenue of $3.5 billion in 2027, the report says. This will be driven by the competitive Subscription Video on Demand (SVOD) sector, which accounted for 78.1% of market revenue in 2022. Although subscription service revenue will expand at a 13% CAGR to reach $2.6 billion, advertising-supported services (AVOD) will grow at a higher rate, albeit from a lower base, the report says.

India is the second-fastest-growing video games market in the world behind Pakistan. India's total video games and e-sports revenue was $1.7 billion in 2022 and is expected to reach $4.2 billion by 2027, increasing at a CAGR of 19.4%. Year-on-year growth in 2022 was 28.8%, a slight slowing of 2.1 percentage points over the previous year. Although growth will continue to slow across the forecast period, it will remain significantly faster than the global average, says the PwC report.

The Indian cinema sector suffered badly during the Covid-19 pandemic but is now rebounding rapidly. Total cinema revenue in India was up sharply in 2022, reaching $1.1 billion, up from $402 million in 2021, the report says. Revenue is expected to reach $2.3 billion by 2027 representing an increase at a 15.1% CAGR, it adds.

The Indian Internet advertising market is among the fastest-growing in the world, with a 12.3% CAGR expected to see total revenue climb from $4.4 billion in 2022 to $7.9 billion by 2027, as per PwC. "There will be growth across the market over the forecast period, with the strongest performances coming in the mobile sector, where an overall CAGR of 13.7% is expected to push total revenue from $3.1 billion to $5.8 billion," it says.

India's total music, radio and podcasts market passed the $1 billion milestone in 2022 to reach $1.1 billion and is forecast to reach $1.5 billion in 2027, the report says. As Indian consumers log onto their favourite streaming platforms, the business for recorded music added over $200mn in the five years to 2022, it adds.

"As the adoption of emerging technologies such as AI, ML and the metaverse increase, the range of use cases will broaden, leading to a significant disruption in the media industry. Media companies and content creators are already striving to provide more interactive and immersive experiences to viewers," says Manpreet Singh Ahuja, chief digital officer and leader of Technology, Media & Telecom at PwC India.

entertainment & media

India's entertainment & media industry to reach $73.6 bn by 2027: PwC