This is PwC’s 23rd annual analysis and forecast of the sector spending by consumers and advertisers across 52 territories.
The report highlights that India will overtake both France and the UK to become the fifth-biggest newspaper market by 2026 and will also be the only country to grow total newspaper print revenue consistently across the five-year forecast period.
India will see an increase in total newspaper revenue at a 2.7% CAGR from Rs 26,378 crore in 2021 to Rs 29,945 crore in 2026, PwC had projected. India will also be the only country in the world to grow daily print newspaper copy sales (by volume) during the forecast period.
The increase at a 1.3% CAGR – to an average of 139 million daily average print newspaper sales in 2026, one-third of the global daily total – will mean that India will overtake China as the biggest world market for print edition readership in 2025.
“The Indian M&E outlook for the next few years is quite unique. There is an exciting pace of growth of digital media and advertising led by the deeper penetration of internet and mobile devices in our market. At the same time, traditional media will hold their steady growth rate over the next few years,” said Rajib Basu, Partner & Leader – Entertainment & Media, PwC India. “We shall see a very different profile of M&E related businesses and revenue models emerging in the digital space once we have the rollout of 5G.”
Among other key findings, the report notes that total OTT revenue has more than doubled in 2020, partly driven by the absence of public entertainment and additional time at home. This trend continued in 2021, with revenue nearly doubling again.
“While growth rates will slow, the market will still expand at an impressive 14.1% CAGR to reach Rs 21,032 crore in 2026. It is subscription services that are driving this rapid growth, accounting for 90.5% of revenue in 2021 and set to account for 95% in 2026,” the reports said.
In terms of out-of-home (OOH) advertising, the reports said that the market is demonstrating one of the strongest comebacks globally and is predicted to grow at 12.57% CAGR to reach Rs 5,562 crore in 2026.
Total OOH revenue recovered by 63.4% in 2021 over the 2020 levels, which was one of the steepest downturns of any market and the biggest fall in revenue among the world’s major economies. In 2021 total OOH revenue was up to Rs 3,076 crore.
The momentum of this rebound will carry over into 2022, and by year-end the market will be at the value Rs 4,084 crore.
Among emerging media, video games and esports revenue, which was at Rs 16,200 crore in 2021, is forecasted to reach Rs 37,535 crore by 2026, increasing at a 18.3% CAGR. While still a fairly small market for the country’s size and population, India is the third fastest-growing video games market in the world, after Turkey and Pakistan.
India’s video games market is predominantly geared towards social/casual gaming. With revenue of Rs 13,244Cr, social/casual gaming made up 83.9% of India’s total video games and esports revenue in 2021.
Expanding at a 20.6% CAGR, social/casual gaming revenue is expected to reach Rs 34,581 crore by 2026. A big enabler of this segment will be the emergence of 5G technology in the market, the report said.
In TV, after several years of rapid expansion, India’s TV advertising market was hit by the COVID-19 recession in 2020, causing a 10.8% decline over the 2019 levels. This proved to be a temporary setback.
With the country’s return to economic growth in 2021, this segment grew by 16.9% to Rs 32,374 crore. The market will expand further at a 6.3% CAGR to reach Rs 43,410 crore by 2026, said the report.
Also, by 2026, India will be the fifth-largest TV advertising market globally, after the US, Japan, China and the UK.
In cinema, India was the third-biggest market globally in terms of admissions after China and the US in 2021 and is set to grow at the highest growth rate amongst all the segments at 38.3% CAGR in the forecast period to reach Rs 16,198 crore by 2026.
In 2021 more than 379 million cinema tickets were sold in India, a healthy increase year-on-year on the 278 million admissions in 2020 (and higher than the 226 million admissions in the US in 2020) though that had been a huge (-85.4%) drop as compared to the 1.9 billion tickets sold pre-pandemic.
India’s Internet advertising market is set to increase at a 12.1% CAGR to reach Rs 28,234 crore by 2026. Given India’s mobile-first Internet access market, the mobile sector dominates the country’s Internet advertising market, accounting for 60.1% of total revenue in 2021, rising to 69.3% by 2026.
While display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021, its share will fall to 88.9% of the total in 2026.
India’s wired Internet access revenue amounted to Rs 6,379 crore r in 2021, which is predicted to increase at a 6.3% CAGR to reach Rs 8,829 crore by 2026.
India’s music, radio and podcast segment grew at 18% in 2021 and is set to grow at 9.8% CAGR to reach Rs 11,536 crore by 2026. India’s Recorded Music industry (which is a key sub-segment) is making steady progress at a CAGR of 13.6%, thanks to streaming models. Here the revenue has grown from Rs 1,663 crore in 2017 to Rs 2,568 crore in 2021, and is expected to continue on this path to Rs 4,849 crore by 2026.
On the other hand, the country’s live music industry remains small, and it shed two-thirds of its revenue in the first year of the COVID-19 pandemic. Revenue ticked up in 2021 to Rs 434 crore and is forecast to grow to Rs 1,052 crore in 2026, increasing at a 19.2% CAGR.