Indian media & entertainment industry to reach $74 billion by 2027
India's media and entertainment industry is projected to reach a substantial $74 billion by 2027, driven by an annual growth rate of over 9%.
India, along with China and Indonesia, has one of the fastest growing media and entertainment sectors in the world. Counties like the US and the UK still remains at the top as far as total revenue, but Asian countries are showing impressive growth.
In 2022, the global revenue for the entertainment and media industry reached $2.32 trillion, marking a 5.4% increase from the previous year. That is according to a report from consulting firm PwC on the state of the entertainment and media industry, which examined 53 territories in 13 different sectors.
Streaming stands out as a frontrunner in terms of growth, experiencing a remarkable 25% surge in revenue during 2022 and reaching a $1.8 billion in revenue. This trend is expected to continue with a 14% uptake, to finally reach $3.5 billion by 2027.
“The Indian Media & Entertainment outlook for the next few years will show an exciting pace of growth. We have a good view of how the industry has reset itself after the pandemic. Increased mobile penetration and the use of digital technologies are poised to disrupt existing channels and create new possibilities in the years ahead for the sector,” said Rajib Basu, Partner and Leader in Entertainment & Media at PwC in India.
The competitive subscription video on demand (SVOD) sector primarily fuels this growth. In 2022, SVOD made up 78% of the media and entertainment sector's revenue. Subscription services are projected to expand by 13% to hit $2.6 billion, while ad-supported services are anticipated to grow at a faster pace, but from a lower starting point.
India is currently the second fastest growing video gaming market globally, trailing behind Pakistan. The sector garnered $1.7 billion in revenue during 2022 and is anticipated to experience a growth of 19%, to reach $4.2 billion by 2027.
The cinema industry has shown strong recovery from pandemic lows. After falling to $402 million in 2021, cinema revenue rebounded to $1.1 billion in 2022. This positive trajectory is expected to continue, with a projected 15% growth, leading to $2.3 billion in annual revenue by 2027.
Similarly, admissions rebounded from $379 million in 2021 to $986 million in 2022, with an expected rise to $1.4 billion by 2027. Live music and cultural events revenue are also projected to surpass the 2019 pre-pandemic peak this year.
The report notes that nearly all the growth in entertainment and media on a global scale will come from digital products and services. With that expansion of digital media comes some risk: The industry will need to keep an eye on threats of regulation that could restrict digital products, algorithms, and platforms. Those include privacy laws, a flurry of emerging regulation on AI, and other legislation.
“As the adoption of emerging technologies such as AI, machine learning, and the metaverse increase, the range of use cases will broaden, leading to a significant disruption in the media industry,” said Manpreet Singh Ahuja, Chief Digital Officer and Leader of Technology, Media & Telecom at PwC in India.
“Media companies and content creators are already striving to provide more interactive and immersive experiences to viewers. We anticipate that Media & Entertainment enterprises will invest heavily in the transformative ideas of the future to maintain relevance with their audiences.”
In recent decades, Bollywood, the Indian film industry, has seen an exponential rise in global popularity and influence, fueled by a combination of diverse storytelling, increased production values, and strategic marketing. This growth can be attributed to its ability to resonate with both domestic and international audiences, with widespread appeal not just in Asia, but as far afield as West Africa.
