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OTT, ONLINE GAMING TO FUEL M&E SECTOR GROWTH: PWC

BY IMPACT Staff

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The PwC Global Entertainment & Media Outlook 20182022 predicts growth at a CAGR of 11.28% between 2018 and 2023 for the Indian Media & Entertainment industry. PWC’s research indicates that over the next five years, growth will particularly be seen in OTT, online gaming and internet advertising. Furthermore, the soon-to-arrive 5G network will enhance user experience and create disruption that will lead to newer business opportunities that will take the industry to a value of Rs 451,373 crore.

The potential of India’s enormous scale during the forecast period of 2018-2023 will mean that the Indian OTT video market will overtake that of South Korea by 2023 to become the eighth largest market in the world. In the area of internet advertising, the ICC World Cup and 2019 general elections are expected to result in rapid growth of internet advertising spends. E-sports and music streaming will also see significant growth during the forecast period. Interestingly, the report also shows data from 2018 that ranks India as the third largest podcast-listening market (after China and the US).

Speaking about the report’s findings, Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, “India is the fastest growing entertainment and media market globally and is expected to keep that momentum. Our research shows that in the next five years India will see significant growth in OTT, online gaming and Internet advertising. Growth in these sub-sectors spurs from the growing trends around personalization and increased digitalization. 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 M&E space need to gear up to take advantage of such opportunities.”

As E&M companies reinvent their organisations and offerings for an increasingly personalised world, four main guidelines will come into play.

• One size does not fit all

• The number of consumer touch points is expanding

• Technological innovation introduces a new era of personalised computing

• Trust and regulation remain pivotal, as personal data hygiene becomes key

KEY HIGHLIGHTS FROM THE PwC MEDIA & ENTERTAINMENT OUTLOOK
OTT Video: India’s OTT video market will grow at a 21.8% CAGR from Rs 4464 crore in 2018 to Rs 11976 crore in 2023. Subscription video on demand will increase at a 23.3% CAGR from Rs 3756 crore in 2018 to Rs 10708 crore in 2023. Internet advertising: India’s internet advertising is projected to grow rapidly in 2019 and beyond, and is forecast to be worth Rs 18445 crore in 2023.

Music streaming: India’s music, radio and podcasts market was worth Rs 5753 crore in 2018, up from Rs 3890 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.

Podcasts: Monthly podcast listeners increased by a good 57.6% from the previous year to reach a total of 4 crore listeners. Growth is expected to continue with listener numbers projected to increase at a 34.5% CAGR to 17.61 crore by 2023.

E-sports: India’s online gaming and e-sports sector will increase at a 36.8% CAGR to the end of the forecast period. Improvements in infrastructure will improve significantly in the near future, driving growth for this sector.

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