India’s OTT (over-the-top) video market will grow at a 21.8% CAGR (compound annual growth rate) from Rs 4,464 crore in 2018 to Rs 11,976 crore in 2023, according to PwC’s Global Entertainment & Media Outlook 2019–2023 report.
The study, conducted on the Indian entertainment and media industry, stated the industry is growing at a compound annual growth rate (CAGR) of 11.28% between 2018 and 2023 and to reach Rs 4,51,373 crore by 2023.
India will see significant growth in over-the-top (OTT), Online Gaming and Internet advertising in the next five years. Growth in these sub-sectors spurs from the growing trends around personalisation and increased digitalisation.
Today’s consumer can now control their own media consumption through an expanding range of smart devices and curate their personal selection of channels using OTT services. Content is being pitched not at audiences of billions but separately at billions of individuals. The soon to arrive 5G networks will create further use cases, enhance user experiences and create disruptions leading to newer business opportunities. Long-term players in the Entertainment & Mediaspace need to gear up to take advantage of such opportunities.
India’s music, radio and podcasts market was worth Rs 5,753 crore in 2018, up from Rs 3,890 crore in 2014. With streaming services finally germinating, total music revenue is forecast to hit Rs 10,858 crore in 2023, rising at a 13.5% CAGR.
Total internet advertising revenue for India in 2018 was Rs 8,150 crore, a 40.2% year-on-year increase from 2017. The Cricket World Cup and elections in 2019 are expected to boost advertising spends. Internet advertising is predicted to continue to grow rapidly in 2019 and beyond and is forecast to be worth Rs 18,445 crore in 2023.
Podcast listening has increased markedly in India in the past few years. Monthly listeners approx 4 crore at the end of 2018, up a sharp 57.6% from 2.54 crore in the previous year. This made India the world’s third-largest podcast-listening market (after China and the US). Growth is set to continue over the forecast period with listener numbers set to increase at a 34.5% CAGR to 17.61 crore by 2023.