This is PwC’s 23rd annual analysis and forecast of consumer and advertiser spending in 52 countries.
The report highlights that India will overtake France and the UK to become the fifth largest newspaper market by 2026, as well as being the only country to steadily increase its total newspaper printing revenue over a five-year forecast period.
In India, PwC forecasts total newspaper revenue to grow by 2.7% per annum from Rs 26,378 crore in 2021 to Rs 29,945 crore in 2026. India will also be the only country in the world to experience growth in daily print newspaper sales (by volume) over the forecast period.
An increase in CAGR of 1.3% to 139 million average daily print newspaper sales in 2026, one-third of the global daily volume, will mean India will become the world’s largest market for print readers in 2025. .
“India’s M&E outlook for the next few years is quite unique. Our market is seeing an exciting growth in digital media and advertising driven by the deeper penetration of the internet and mobile devices. At the same time, traditional media will maintain their strong growth momentum over the next few years,” said Rajib Basu, Partner and Head of Entertainment and Media, PwC India. “We will see a completely different M&E business profile and revenue models emerging in the digital space once we launch 5G.”
Among other key findings, the report notes that overall OTT revenue more than doubled in 2020, due in part to a lack of social entertainment and extra time at home. This trend continued into 2021, with revenue nearly doubling again.
“Although the growth rate will slow down, the market will continue to expand at an impressive CAGR of 14.1% and reach Rs 21,032 crore in 2026. It is subscription services that are driving this rapid growth, which account for 90.5% of revenue in 2021 and should account for 95% in 2026,” the reports said.
In terms of outdoor advertising (OOH), reports say the market is seeing one of the strongest rebounds in the world and is projected to grow by 12.57% per annum to reach Rs 5,562 crore in 2026.
Total outdoor advertising revenue rebounded 63.4% in 2021 from 2020 levels, one of the sharpest declines in any market and the largest drop in revenue among the world’s largest economies. In 2021, the total outdoor advertising revenue was up to Rs 3,076 crore.
The momentum of this recovery will continue into 2022 and the market will be worth Rs 4,084 crore by the end of the year.
Among new media, video games and esports, revenue which stood at Rs 16,200 crore in 2021 is projected to reach Rs 37,535 crore by 2026, up 18.3% on average. Even though the market is still quite small for the size and population of the country, India is the third fastest growing video game market in the world after Turkey and Pakistan.
The video game market in India is mainly focused on social/casual games. With a revenue of Rs 13,244 crore, social/casual games accounted for 83.9% of India’s total video game and esports revenue in 2021.
Increasing at an average rate of 20.6%, revenue from social and casual games is expected to reach Rs 34,581 crore by 2026. The report says that the introduction of 5G technology to the market will be an important factor in this segment.
In television, after several years of rapid growth, the Indian television advertisement the market was hit by the COVID-19 recession in 2020, resulting in a 10.8% decline from 2019 levels. This turned out to be a temporary setback.
With the country returning to economic growth in 2021, this segment grew by 16.9% to Rs 32,374 crores. The report states that the market will expand at an average rate of 6.3% per annum and reach Rs 43,410 crore by 2026.
In addition, by 2026, India will become the fifth largest TV advertising market in the world after the US, Japan, China and the UK.
In terms of cinema, India was the third largest market in the world in terms of attendance after China and the US in 2021 and is set to grow at the highest growth rate of any segment at a 38.3% CAGR over the forecast period to reach Rs 16,198 crore by 2021. 2026
Over 379 million movie tickets were sold in India in 2021, a significant year-over-year increase from 278 million visits in 2020 (and higher than the 226 million visits in the US in 2020), although this was a huge (-85.4%) decrease from the 1.9 billion tickets sold before the pandemic.
The online advertising market in India is expected to grow at a CAGR of 12.1% and reach Rs 28,234 crore by 2026. With India’s mobile-centric Internet access market, the mobile sector dominates the country’s online advertising market, accounting for 60.1% of total revenue in 2021. up 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% in 2026.
India’s wired internet revenue was Rs 6,379 crore in 2021, which is projected to increase by 6.3% per annum to reach Rs 8,829 crore by 2026.
The music, radio and podcast segment in India grew by 18% in 2021 and is set to grow by 9.8% per annum to reach Rs 11,536 crore by 2026. by 13.6% thanks to streaming models. Here, revenue has risen from Rs 1,663 crore in 2017 to Rs 2,568 crore in 2021 and is expected to continue rising to Rs 4,849 crore by 2026.
On the other hand, the live music industry in the country remains small and lost two-thirds of its revenue in the first year of the COVID-19 pandemic. Revenue rose in 2021 to Rs 434 crore and is projected to rise to Rs 1,052 crore in 2026, up 19.2% on average.