This is PwC’s 23rd annual analysis and forecast of industry spend by consumers and advertisers across 52 territories.
The report highlights that India will overtake both France and UK to become the fifth largest newspaper market by 2026, and will also be the only country to consistently increase total newspaper printing revenues over the five-year forecast period.
India will see total newspaper revenues grow by 2.7% CAGR from Rs.26,378 crore in 2021 to Rs.29,945 crore in 2026, PwC had forecast. India will also be the only country in the world to increase daily print newspaper sales (by volume) over the forecast period.
The CAGR 1.3% increase – to average 139 million daily average print newspaper sales in 2026, a third of global daily sales – will mean that India will overtake China as the largest global market for print readership in 2025.
“The Indian M&E outlook for the next few years is quite unique. There is an exciting pace of growth in digital media and advertising, led by the deeper penetration of the web and mobile devices in our market. At the same time, traditional media will maintain its steady growth rate over the next few years,” said Rajib Basu, Partner & Leader – Entertainment & Media, PwC India. “We’re going to see a very different profile of M&E-related companies and revenue models in the digital space once we have the rollout of 5G.”
Among other key findings, the report finds that total OTT revenue more than doubled in 2020, due in part to a lack of public entertainment and extra time at home. This trend continued in 2021, with sales almost doubling again.
“While growth rates will slow, the market will still grow at an impressive 14.1% CAGR and reach Rs 21,032 billion in 2026, up 95% in 2026,” the reports said.
Regarding Out of Home (OOH) advertising, the reports state that the market is making one of the strongest comebacks globally and is expected to grow at 12.57% CAGR to reach Rs 5,562 crore in 2026.
Total OOH revenue rebounded 63.4% in 2021 from 2020 levels, marking one of the sharpest falls of any market and the largest decline in revenue among the world’s major economies. In 2021, the total OOH revenue was Rs.3,076 crore.
The momentum of this recovery will continue into 2022 and by year-end the market will be worth Rs 4,084 crore.
Emerging media, video games and e-sports revenue, which reached Rs 16,200 crore in 2021, is forecast to increase to Rs 37,535 crore by 2026, growing at a CAGR of 18.3%. While still a relatively small market for the country’s size and population, India is the third fastest growing video game market in the world after Turkey and Pakistan.
India’s video game market is predominantly social/casual gaming oriented. With revenue of Rs 13,244Cr, social/casual gaming accounted for 83.9% of total video game and e-sports revenue of India in 2021.
With a compound annual growth rate of 20.6%, the revenue from social/casual gaming is projected to reach Rs. 34,581 crore by 2026. A big enabler of this segment will be the advent of 5G technology in the market, the report said.
On TV, after several years of rapid growth, the Indian TV advertising market was hit by the COVID-19 recession in 2020, resulting in a 10.8% decline from 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 continue to grow at a CAGR of 6.3% and reach Rs.43,410 crore by 2026, the report said.
Also, by 2026, India will be the fifth largest TV advertising market in the world after the US, Japan, China and the UK.
In cinema, India was the third largest market globally in terms of admissions after China and USA in 2021 and is expected to grow at the highest growth rate among all segments at CAGR 38.3% during the forecast period, reaching Rs. 16,198 crore by 2026.
More than 379 million cinema tickets were sold in India in 2021, a healthy year-on-year increase from 2020’s 278 million admissions (and higher than the US’s 226 million admissions in 2020), although this is a huge (-) 85.4%) decrease compared to the 1.9 billion tickets sold before the pandemic.
India’s internet advertising market is expected to grow at 12.1% CAGR and 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. increase to 69.3% by 2026.
While display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021, its share will drop to 88.9% of total revenue in 2026.
India’s wired internet revenue was Rs 6,379 crore in 2021, which is expected to grow at CAGR 6.3% and is expected to reach Rs 8,829 crore by 2026.
India’s music, radio and podcast segment grew 18% in 2021 and is projected to grow at CAGR 9.8% to Rs.11,536 crore by 2026 from 13.6% thanks to streaming models. Here revenue has increased 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, losing two-thirds of its revenue in the first year of the COVID-19 pandemic. Revenue grew to Rs.4.34 crore in 2021 and is expected to grow to Rs.1,052 crore in 2026, at a CAGR of 19.2%.