India’s OTT (over-the-top) video market will grow at a 21.8% CAGR(compound annual growth rate) from Rs 4,464 crore in 2018 to Rs 11,976 crore in 2023, according to PwC’s Global Entertainment & Media Outlook 2019–2023 report.
The study, conducted on the Indian entertainment and media industry, stated the industry is growing at a compound annual growth rate (CAGR) of 11.28% between 2018 and 2023 and to reach Rs 4,51,373 crore by 2023
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India, said, “Our research shows that in the next five years India will see significant growth in over-the-top (OTT), Online Gaming and Internet advertising. Growth in these sub-sectors spurs from the growing trends around personalisation and increased digitalisation.”
Subscription video on demand will increase at a 23.3% CAGR from Rs 3,756 crore in 2018 to Rs 10,708 crore in 2023. The potential of India’s enormous scale will become reality during the forecast period with its OTT video market overtaking that of South Korea to become the eighth-biggest market in the world by 2023.
“Today’s consumer can now control their own media consumption through an expanding range of smart devices and curate their personal selection of channels using OTT services. Content is being pitched not at audiences of billions but separately at billions of individuals. The soon to arrive 5G networks will create further use cases, enhance user experiences and create disruptions leading to newer business opportunities. Long-term players in the Entertainment & Mediaspace need to gear up to take advantage of such opportunities,” he said.
Total internet advertising revenue for India in 2018 was Rs 8,150 crore, a 40.2% year-on-year increase from 2017. The Cricket World Cup and elections in 2019 are expected to boost advertising spends. Internet advertising is predicted to continue to grow rapidly in 2019 and beyond and is forecast to be worth Rs 18,445 crore in 2023.
India’s e-sports revenue is small at present but has strong potential with a calendar of well-supported events and leagues emerging. While outside sponsorship remains lower than global markets, this will see India’s e-sports sector increase at a 36.8% CAGR to the end of the forecast period. The main challenge for the segment has been poor online infrastructure, which has historically restricted growth. However, with improvements in infrastructure, this is expected to improve significantly in the near future.
India’s music, radio and podcasts market was worth Rs 5,753 crore in 2018, up from Rs 3,890 crore in 2014. With streaming services finally germinating, total music revenue is forecast to hit Rs 10,858 crore in 2023, rising at a 13.5% CAGR.
At that pace, India would be the fastest-growing major economy on the planet. And with a population surging past Rs 140 crore, it is forecast to surpass that of China in 2022.
Podcast listening has increased markedly in India in the past few years. Monthly listeners (defined as people who listened to at least one podcast in the last month) totalled 4 crore at the end of 2018, up a sharp 57.6% from 2.54 crore in the previous year. This made India the world’s third-largest podcast-listening market (after China and the US), although it ranks much lower on a per capita basis. Growth is set to continue over the forecast period with listener numbers set to increase at a 34.5% CAGR to 17.61 crore by 2023.
As E&M companies reinvent their organisations and offerings for an increasingly personalised world, four priorities are coming to the fore, One size does not fit all: As companies approach both markets of individuals and individual geographic markets, they are finding that it makes sense to present different options. The number of consumer touch points is expanding as media and e-commerce experiences become more personal, gratification for consumers is becoming more instant and immediate.
Technological innovation introduces a new era of personalised computing, while trust and regulation remain pivotal, as personal data hygiene becomes a key.