Media and entertainment sector to grow over 10% through 2024: report

The media and entertainment industry is expected to grow at an annual rate of more than 10% to reach $ 55 billion by 2024, according to a report.

Industry growth, which would look like a bifurcated K-shaped recovery, looming on the horizon, led by over-the-top (OTT), online advertising, video / games / esports , music and podcasts, PwC India said in the report released Thursday.

The board has a strong long-term outlook as it is expected to grow at a compound annual growth rate (CAGR) of 10.1% to reach $ 55 billion by 2024.

In terms of individual segment market size as a percentage of total industry revenue, OTT video is expected to experience the largest gain and reach 5.2% by 2024, followed closely by online advertising.

Although India remains the world’s largest cinema market in terms of admissions, cinema revenue will contract at (minus) 2.6% CAGR to $ 1.5 billion during the review period .

“Our research shows that India will be the fastest growing entertainment and media market in the world in terms of pure consumer income,” the report said.

Over the next four years, the outlook remains very positive for digital segments such as OTT, online advertising, online games and music, and podcasts which were perfectly positioned to serve consumers where they are. in 2020, mainly at home and online.

The report sees the OTT space as the main growth and revenue driver overtaking South Korea, Germany and Australia to become the sixth largest OTT market by 2024.

Subscription video on demand will be the main driver of revenue, growing at a CAGR of 30.7%, from $ 708 million in 2019 to $ 2.7 billion in 2024.

OTT’s exponential growth comes at the expense of cinemas and traditional television, which have already shrunk in 2020. OTT is directly benefiting from shutting down cinemas as some movie studios choose to speed up new releases on movie platforms. home video. .

When it comes to online advertising, India is already the sixth largest market in the Asia-Pacific region, according to the report.

He added that mobile will be the main revenue driver in this space due to increased accessibility of data, new mobile formats first, measurement capability and strategic targeting.

Games and e-sports are capitalizing on the need to deliver live experiences in more personalized and engaging ways. Esports accounted for less than 1% of the overall market in 2019, but has become one of the fastest growing segments with a projected CAGR of 33% by 2024.

The podcast industry was already growing rapidly before the pandemic. Fueled by the adoption of music streaming brands, the global space is expected to grow 13.5% per year through 2024 to reach $ 1.7 billion.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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