Online TV advertising will make modest inroads in the forecast period, with broadband penetration remaining extremely low at 7.3% of households. Despite recording a decline last year between April-July, TV advertising has continued to expand in 2020, touching Rs 35,015 crore making India the fourth-largest market globally after the US, China and Japan, according to PwC’s Global Entertainment & Media Outlook 2021-2025 report. Further, TV ad revenue is expected to rise by 7.6% CAGR to Rs 50,586 crore by 2025. Of this, multichannel advertising will account for nearly 92%. Online TV advertising will make modest inroads in the forecast period, with broadband penetration remaining extremely low at 7.3% of households. The report also highlighted that India’s Entertainment & Media industry is expected to reach Rs 4,12,656 crore by 2025 at 10.75% CAGR.
Despite the pandemic, the Indian entertainment and media sector has shown remarkable resilience, Rajib Basu, partner and leader – Entertainment & Media, PwC India said. “As we predicted last year, India is forecasted to be the fastest growing entertainment and media market globally in terms of consumer and advertising revenue. Technological advancement and deepening of internet access will continue to influence the way Indians consume content. Our Outlook shows that the demand for great, localised content, increased internet penetration and the creation of new business models will drive the industry’s growth for the next five years,” he added.
The report also stated that India is the fastest-growing internet advertising market in the world at a CAGR of 18.8% during 2020-2025. Growth in mobile ad revenue overtook wired revenue in 2019 and is expected to be 74.4% of the total internet advertising revenue of Rs 30,471 crore by 2025. In 2020 revenue from mobile internet advertising in India was Rs 7,331 crore and will rise to Rs 22350 crore in 2025 – increasing at a 25.4% CAGR.
As for newspapers and consumer magazines, the segment that was worth Rs 26,299 crore is likely to have a CAGR of 1.82% upto 2025. It is to be noted that in 2020, print advertising revenue fell by 12.0% and print circulation revenue was down by 4.0%, mainly due to the pandemic. Just as print, cinemas also received the short end of the stick in 2020. Box-office revenues dropped 75% year-on-year to Rs 2,652 crore. However, the Box-office revenue is expected to recover and grow at a CAGR of 39.3% grossing up Rs 13,857 crore by the end of 2025. The overall segment comprising box-office and cinema advertising is predicted to grow back to pre-covid level by mid of 2023.
The gaming market in India continues to enjoy exceptional growth and shows enormous potential, the report states. Video games and esports revenue reached Rs 11,250 crore in 2020 and is set to expand to Rs 24,213 crore in 2025, at 16.5% CAGR. India’s gaming market is dominated by the social/casual category, which accounted for 77% of all video games and esports revenue in 2020. India’s esports market is small but as awareness grows and, crucially, the mobile esports offering becomes stronger, this sector will see rapid expansion, at a 31.6% CAGR over the forecast period.
“Even in the areas that offer the most compelling topline growth – like video streaming – the nature of competition is likely to change dramatically over the coming years. And all the while, the social, political, and regulatory context in which all companies operate continues to evolve in unpredictable ways. All of which means that sitting still, relying on the strategies that created value and locked up market share in the past, will not be the most effective posture going forward,” Werner Ballhaus, global entertainment and media industry leader partner, PwC Germany, said.
Read Also: Covid19 fast-tracked the digital adoption timelines for businesses from years to months: Report
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