India's Media Boom: Rapid Growth and Digital Transformation

India's entertainment and media industry is projected to grow at a CAGR of 8.3%, outpacing global trends. Driven by digital advances like OTT platforms, online gaming, and AI, it seeks to become a global leader. Key growth factors include increased connectivity, millennial demographics, and favorable investment policies.

India's entertainment and media industry is on the threshold of unprecedented growth, with a projected CAGR of 8.3% expected to reach Rs 365,000 crore (USD 19.2 billion), surpassing the global average of 4.6%, reveals PwC India's latest report, 'Global Entertainment and Media Outlook 2024-28: India perspective'. Currently, the United States leads in revenue, followed by China, with India ranking ninth.

Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India, emphasizes the transformative phase India is undergoing. Key growth drivers such as digital advertising, OTT platforms, online gaming, and generative AI are set to redefine the industry. Ahuja notes that businesses embracing innovation in these areas will capture significant opportunities in this dynamic environment.

India's expanding connectivity, coupled with surging advertising revenues and supportive government policies on foreign direct investment, positions the country for substantial growth in the coming years. With a vast millennial and Gen-Z population of over 910 million and the world's most affordable data rates, the country boasts 800 million broadband subscriptions, 550 million smartphone users, and 780 million internet users.

Advertising, driven by economic and consumption growth, is expected to rise by a 9.4% CAGR from Rs 101,000 crore in 2023 to Rs 158,000 crore in 2028, 1.4 times the global average. Internet advertising, a major growth component, is anticipated to grow at 15.6% CAGR, climbing from Rs 41,000 crore in 2023 to Rs 85,000 crore by 2028, with projected year-on-year growth maintaining double digits through to 2028.

This trend toward digital consumption fuels cord-cutting acceleration, with traditional TV ad spending growing at only a 4.2% CAGR from 2023 to 2028, as global figures decline by 1.6%. India is poised to become the fourth-largest TV advertising market by 2026.

(With inputs from agencies.)