Indian media and entertainment industry size to reach Rs 4.30 lakh crore by 2026: Report
The Indian media and entertainment industry is expected to grow at a CAGR (compound annual growth rate) of 8.8 percent and reach Rs 4.30 lakh crore by 2026, according to a report by global consultancy firm PwC.
The growth would be paced by digital media and advertising through deeper penetration of the internet and mobile devices in the domestic market, along with traditional media, which will hold their steady growth, the report said.
TV advertising is expected to reach over Rs 43,000 crore by 2026. It will make India the fifth-largest TV advertising market globally, after the US, Japan, China, and the UK.
The Indian media and entertainment industry is expected to be around Rs 3.14 crore in 2022, registering an overall growth of 11.4 percent, as per the PwC's Global Entertainment & Media Outlook 2022-2026.
India's OTT Video services are expected to become a Rs 21,031 crore industry in the next four years by 2026, in which Rs 19,973 crore would come from subscription-based services and Rs 1,058 crore from Transactional VOD (video on demand).
"It is subscription services that are driving this rapid growth, accounting for 90.5 percent of revenue in 2021 and set to account for 95 percent in 2026," it said.
The population size and widespread use of mobile-led Internet video will underpin rapid growth in the OTT market over the forecast period. In particular, uptake of 5G will permit low-latency services such as OTT video streams, greatly boosting the sector.
"As infrastructure improves in the long term, the scale and diversity of the population will lend itself to a wide range of platforms," the report added.
TV advertising would grow up to Rs 43,568 crore in 2026 from Rs 35,270 crore in 2022, registering a growth of 23.52 percent.
India's internet advertising market is set to increase at a 12.1 percent CAGR to reach Rs 28,234 crore by 2026.