Info-tech

India set to become the 6th largest OTT market by 2024: PwC

Meenakshi Verma Ambwani New Delhi | Updated on October 22, 2020 Published on October 22, 2020

Media and entertainment sector to grow at 10.1 per cent CAGR in next five years

Despite disruptions due to the pandemic, Indian entertainment  and media industry is expected to touch the $55 billion-mark by 2024 growing at aCAGR of 10.1 per cent aided by growth in sectors such as OTT, internet advertising, videogames, e-sports, music and podcasts, according to PwC.

In 2019, the Indian entertainment and media sector was pegged at $34.3 billion.

OTT market

India has now emerged as the fastest growing OTT video market growing at 28.6 per cent CAGR and expected to become a $2.9 billion market by 2024.

Rajib Basu, Partner and  Leader-Entertainment & Media, PwC India, said that the industry is expected to witness a K-shaped recovery trajectory with segments linked to advertising and physical space consumption expected to be negatively impacted, while the outlook over the next five years remains positive for digital-led segments such as OTT, internet advertising and online gaming.

With cinemas shut for nearly seven months due to the pandemic and adoption of OTT platforms, subscription video-on-demand (SVOD) revenues for the first time expected to overtake box office spends in 2020. Basu said that 2020 is a key tipping point for the sector and this trend of SVOD revenues being higher than box office spends is expected to continue for the next 3-4 years.

According to the report, India is expected to become the sixth largest OTT market by 2024. “Subscription VOD will be the prime driver of revenue, increasing at a 30.7 per cent CAGR from $708 million in 2019 to $2.7 billion in 2024,” the report added. OTT video segment’s share to the overall entertainment and media sector is forecasted to increase from 2.4 per cent in 2019 to 5.2 per cent by 2024.

In comparison, share of cinema revenues will contract from 5.1 per cent in 2019 to 2.8 per cent . The report added that while India will remain the world’s biggest cinema market in admission terms, “cinema revenue in India will contract at a -2.6 per cent CAGR to total $1.5 billion over the next 5 years.”

Internet advertising

India is also now the sixth-largest internet advertising market and the segment is expected to grow a CAGR of 21.7 per cent to  reach $3.8 billion mark by 2024, according to PwC estimates. “Mobile will continue to be the primary driver of revenue in the Internet advertising market revenue due to increased data affordability, new mobile-first formats, ability to measure, and strategic targeting,” the report added.

In addition, India’s billion dollar gaming segment is expected to surge to $3.2 billion over the next five years with e-sports segment alone expected to grow at CAGR of 33 per cent.

Fuelled by the uptake of music-streaming brands, the music, radio  and podcast segment is expected to grow at 13.5 per cent CAGR to grow to $1.7 billion in 2024. With about 57.6 million monthly listeners, India is the third largest podcast listening market in the world after China and the US and listener base is expected to surge at a 30.4 per cent CAGR in the next five year.

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Published on October 22, 2020
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