In its annual sector forecast for 2017-2021, PwC said India’s M&E sector will grow to $45.1 billion by 2021 from $27.3 billion at the end of 2016.
In a report titled Global Entertainment & Media Outlook, PwC predicts that in the 54 major countries considered for the report, the M&E industry will only grow at a CAGR (compound annual growth rate) of 4.2%. In addition, for the first time in global markets, the sector’s growth will be below average GDP growth, signaling that in many of these countries the sector is experiencing a plateau, according to Frank D’Souza, partner and leader of the entertainment and media at PwC India.
“Unlike the global economy, which will see a reduced contribution from the entertainment and media sector during the forecast period, in India, the sector’s growth rate will outpace the overall GDP growth rate,” said D. ‘Suza. “Being a relatively underdeveloped market in terms of per capita spending on entertainment and media, India will grow by 10.5% over the next five years.”
According to the report, TV advertising in India will continue to hold the biggest slice of the pie at $5.81 billion in 2021, growing by 11.1% from $3.43 billion in 2016. television subscriptions are also expected to increase from $8.14 billion to $14.1 billion. by 2021, with a CAGR of 11.6%.
The report pointed out that although the number of subscribers continues to grow, the explosive growth levels of the recent past will not be repeated in the future. Incidentally, the cable market is approaching a saturation point but will still account for over 55% of the total pay-TV market in 2021.
India is the second largest subscription TV market in the Asia-Pacific region in terms of the number of TV household subscriptions, which reached 154.3 million in 2016. This figure is expected to grow at a CAGR of 1.6% to reach 166.9 million by 2021.
Contrary to the global trend, newspapers are expected to grow from $3.56 billion in 2016 to $3.76 billion in 2021 at a CAGR of 1.1%. Book publishing is expected to grow at a CAGR of 6.1% over the period 2017-2021 ($2.95 billion), while magazines are expected to grow at a CAGR of 3.3% over the same period ( at $295 million). The report highlights that the growth rate is slowing in newspapers as the effects of digital disruption begin to be felt in a market that has long benefited from the expansion of print.
Digital advertising is expected to grow fastest with a CAGR of 18.6% to $1.73 billion by 2021 from an estimated $740 million in 2016, while for Internet video the CAGR is higher at 22.4%, but at a lower base of $239. million.
Radio is expected to be the fastest growing among traditional media with a CAGR of 14.7% in 2021 to reach $826 million, up from $416 million in 2016.
The Indian film industry is expected to experience strong growth to become the third largest cinema market, after the United States and China by 2021, with a CAGR of 10.4%.