India’s media and entertainment sector surpasses $ 55 billion by 2024

Driven by online channels, India’s media and entertainment (M&E) industry is expected to grow at a compound annual growth rate (CAGR) of more than 10% by 2024, surpassing the $ 55 billion mark.

The growth of the M&E sector will be distributed across segments, and Covid-19 has an important role to play in how the loot is distributed. A result of blockages and widespread infection risks: everything physical will suffer, whether it is income from the cinema or events such as concerts, festivals, etc.

In fact, the Indian cinema market – the largest in the world – will contract at a compound annual growth rate (CAGR) of nearly -3% over the next five years. So says accounting and consulting firm Big Four PwC, which analyzed data from trade associations and government, supplemented by interviews with industry leaders and regulators.

The firm is also noting a boom in other segments, which will fill the void left by the physical entertainment landscape. “We are in an extraordinary time,” noted Rajib Basu, partner and M&E manager of PwC, noting that years of M&E disruption are now unfolding in the months since the pandemic.

“The pandemic has accelerated the changes underway in consumer behavior, driving digital disruption and reaching industry tipping points that would otherwise not have been reached over the next several years. Our research shows that India will be the fastest growing entertainment and media market in the world in terms of pure consumer income, ”added Basu.

OTT domination

While theaters and physical events will suffer, a few segments are uniquely positioned to take advantage of this M&E boom. Most notable here is over the top (OTT) content, which covers subscription video models like Netflix and Prime for example. The segment was already pegged to substantial growth before the crisis, but nothing to do with the slope that is currently projected.

As 2024 approaches, PwC forecasts a staggering CAGR of almost 29% for OTT in India, making it the fastest growing OTT market in the world. The steady rise is expected to take segment revenue to around $ 3 billion. The boom is the product of immediate factors, combined with certain underlying catalysts.

In the immediate area, PwC reports that most movie studios are now designing their content for direct distribution via OTT platforms, knowing that theaters are out of action for the foreseeable future. Taking advantage of the increase in demand, OTT distributors are also able to optimize their prices and maximize their revenues.

Then there are the underlying catalysts, primarily an increase in data access and affordability across India and the corresponding increase in mobile streaming formats. Aside from the OTT boom, these trends will also drive growth in other key M&E segments, and hence the growth of the industry as a whole.

Segments such as internet advertising, games, radio, and podcasts are all expected to gain traction over the next five years or so, as more and more people turn to their devices for entertainment. For Basu, this trend marks the growth of competitiveness in M&E in India.

According to him, brands “will have to establish and maintain direct relationships with consumers, offer enough differentiation or scale to compete and generate greater value by using the right technologies. This is a unique window of opportunity for M&E companies to transform and make themselves more resilient and relevant for the future. “