Media and entertainment industry to touch Rs3.5 trillion by 2022: PwC report

How to turn your old Android smartphone into a home security camera
How to turn your old Android smartphone into a home security camera
06/06/2018
World’S Richest Athlete, Floyd Mayweather’S Ultra-Lavish Lifestyle Is Shocking Beyond Belief
World’S Richest Athlete, Floyd Mayweather’S Ultra-Lavish Lifestyle Is Shocking Beyond Belief
06/06/2018

Media and entertainment industry to touch Rs3.5 trillion by 2022: PwC report


In the last two years, nearly 30 OTT platforms have come to the fore, including Netflix, Amazon Prime Video, ALTBalaji, Hotstar and SonyLIV. Photo: Indranil Bhoumik/Mint

In the last two years, nearly 30 OTT platforms have come to the fore, including Netflix, Amazon Prime Video, ALTBalaji, Hotstar and SonyLIV. Photo: Indranil Bhoumik/Mint

New Delhi: The Indian entertainment and media industry is expected to reach Rs3.5 trillion (Rs353,609 crore) by 2022, growing at a compound annual growth rate (CAGR) of 11.6% between 2018 and 2022, according to a report by global accounting firm PricewaterhouseCoopers (PwC).

The report titled Global Entertainment & Media Outlook 2018-2022 (Outlook) noted data consumption in India is set to grow as mobile connections reach 850 million people by 2022. Despite rampant and irrevocable rates of piracy, the country will emerge as one of the top 10 largest OTT (over-the-top) video markets by the same period with a 22.6% CAGR.

“It is not surprising that India continues to be one of the fastest growing entertainment and media markets globally,” said Frank D’Souza, partner and leader, entertainment and media, PwC India. “However, what is encouraging is how non-linear media is expected to grow on the back of increase in device penetration, lower Internet prices, consumer content demand and portability preferences.”

Without doubt, as D’Souza said, this growth will be driven by a rise in online content consumption.

According to the report, OTT video revenue has reached Rs2,019 crore in 2017. Further strong growth at CAGR of 22.6% will see India move into the top 10 bracket by 2022 with a revenue of Rs5,595 crore. In the last two years, nearly 30 OTT platforms have come to the fore, including American services like Netflix and Amazon Prime Video and local players like Balaji Telefilms’ ALTBalaji and those owned by broadcast networks like Star India’s Hotstar and Sony Entertainment Television’s SonyLIV.

The growing competition among international and regional subscription Video on Demand(SVoD) platforms is evident with over 70% of revenue in 2017 attributable to subscription services, the report said. This trend will grow with 79.4% of total market revenue expected from SVoD by 2022.

Total Internet advertising revenue in India reached Rs6,513 crore in 2017, a rise of 25.4% over 2016. Mobile video advertising is the fastest-growing sub-segment of India’s Internet advertising market, expected to rise at 32.8% CAGR by 2022, when revenue will total Rs2,155 crore.

Cinema is the next important segment. Total movie revenue is expected to rise at 9.4% CAGR over the forecast period. Average ticket prices in India will move up to reach Rs78 by 2022 from Rs55 in 2017. The number of screens is also expected to increase to 12,775 by 2022 from 11,672 in 2017 at a 1.8% CAGR.

Indian traditional gaming is growing at a 4.0% CAGR, but the social/casual gaming category will represent 82.2% of all Indian consumer gaming revenue by 2022. The segment is expected to grow by a 55.9% CAGR over the forecast period from Rs1,645 crore to Rs14,772 crore.

The report also outlined a few drivers shaping the new media and entertainment ecosystem around the world. The number of high-speed mobile Internet connections will increase by 2.2 billion globally by 2022, vastly expanding the market for mobile content consumption at faster speeds. This is complemented by the fact that the mobile has become consumers’ primary means of accessing content, making it an increasingly important focus for advertisers.

While the media and entertainment companies are looking to expand beyond traditional revenue sources, telecom companies are targeting the M&E sector to revitalize their growth.

“To succeed in the future that’s taking shape, companies must revisit every aspect of what they do and how they do it. This means going above and beyond in how they envision their business, generate revenues, create and organize their capabilities and build and retain trust,” said Christopher Vollmer, global advisory leader for entertainment and media, PwC US.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *