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India’s media and entertainment industry is expected to reach Rs. 4,30,401 crore by 2026 at a CAGR of 8.8%, according to a report by professional services firm Pricewaterhouse Coopers. 

The OTT (over-the-top) streaming market will expand at 14.1% CAGR to reach Rs. 21,032 crore over the same period, with subscription services driving this growth, accounting for 90.5% of revenue in 2021 and set to account for 95% in 2026. Meanwhile, the TV advertising market will expand at 6.3% CAGR to reach Rs. 43,410 crore by 2026. At this time, India will be the fifth-largest TV advertising market globally, after the US, Japan, China and the UK, the report said.

Titled Global Entertainment & Media Outlook 2022-2026, this is the 23rd annual analysis and forecast of entertainment and media spending by consumers and advertisers across 52 territories by PwC.

Total OTT revenue more than doubled in 2020, partly driven by the absence of public entertainment and additional time at home during the covid-19 lockdown. This trend continued in 2021, with revenue nearly doubling again. While growth rates will slow, the market will still expand at 14.1% CAGR.

India’s TV advertising market was hit by the covid-19 recession in 2020, causing a 10.8% decline over the 2019 levels. With the country’s return to economic growth in 2021, this segment grew by 16.9% to Rs. 32,374 crore, all set to expand further at a 6.3% CAGR by 2026.

India’s Internet advertising market is set to increase at a 12.1% CAGR to reach Rs. 28,234 crore by 2026. Given the country’s mobile-first Internet access market, the mobile sector dominates the Internet advertising market here, accounting for 60.1% of total revenue in 2021, rising to 69.3% by 2026. Display advertising dominates the mobile sector, accounting for 90.7% of revenue in 2021, though its share will fall to 88.9% of the total in 2026. India’s wired Internet access revenue amounted to Rs. 6,379 crore in 2021 which is predicted to increase at a 6.3% CAGR to reach Rs. 8,829 crore by 2026.

India will see an increase in total newspaper revenue at a 2.7% CAGR from Rs. 26,378 crore in 2021 to Rs. 29,945 crore in 2026. India, which will beat both France and the UK to become the fifth-biggest newspaper market by 2026, will also be the only country to grow total newspaper print revenue consistently across the five-year forecast period. India will also be the only country in the world to grow daily print newspaper copy sales (by volume) during the forecast period. The increase at a 1.3% CAGR – to an average of 139 million daily average print newspaper sales in 2026, one-third of the global daily total – will mean that India will overtake China as the biggest world market for print edition readership in 2025.

India is the third-biggest market globally in terms of cinema admissions after China and the US in 2021 and is set to grow at the highest growth rate among all the segments at 38.3% CAGR in the forecast period to reach Rs. 16,198 crore by 2026. India’s total video games and esports revenue was Rs. 16,200 crore in 2021, and is projected to reach Rs. 37,535 crore by 2026, increasing at a 18.3% CAGR. While still a fairly small market for the country’s size and population, India is the third fastest-growing video games market in the world, after Turkey and Pakistan. With revenue of Rs. 13,244 crore, social or casual gaming made up 83.9% of India’s total video games and esports revenue in 2021. It will expand at a 20.6% CAGR to reach Rs. 34,581 crore by 2026.

“The Indian media and entertainment outlook for the next few years is quite unique. There is an exciting pace of growth of digital media and advertising led by the deeper penetration of internet and mobile devices in our market. At the same time, traditional media will hold their steady growth rate over the next few years. We shall see a very different profile of media and entertainment related businesses and revenue models emerging in the digital space once we have the rollout of 5G," Rajib Basu, partner and leader – entertainment and media, PwC India said in a statement.

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