M&E industry to grow at 8.8% CAGR by 2026: Report

The Media and Entertainment (M&E) industry is forecast to reach INR 430,401 crore in the next five years

June 24, 2022

India is set to become the world’s fifth-biggest newspaper market by 2026

Over-The-Top (OTT) market is set to expand at a CAGR of 14.1%

Video games and esports revenue is poised to increase at a growth rate of 18.3%

The Internet advertising market in India is set to reach INR 28,234 crore by 2026

India’s M&E industry is expected to grow at a CAGR of 8.8% to reach INR 430,401 crore by 2026, according to a report by PricewaterhouseCoopers titled “PwC.Global Entertainment & Media Outlook 2022-2026”.

Experts said that M&E businesses and revenue models emerging in the digital space will undergo changes after the rollout of 5G technology.

Print and TV

According to the report, India is set to become the world’s fifth-biggest newspaper market by 2026, and will also be the sole country to grow the total sales of daily print newspaper copies by volume during the forecast period. The country is expected to see an increase in total newspaper revenue at a CAGR of 2.7% from INR 26,378 crore in FY21 to INR 29,945 crore in FY26. Average print newspaper sales in 2026 are expected to increase at a CAGR of 1.3%. 

The television advertising segment grew by 16.9% to INR 32,374 crore, and the market is expected to further grow at a CAGR of 6.3% to reach Rs 43,410 crore by 2026.

OTT and OHH

The OTT market is set to expand at a CAGR of 14.1% to reach INR 21,032 crore in 2026. Subscription services are driving this growth and have accounted for 90.5% of the market’s revenue in 2021, and this share is expected to reach 95% in 2026.

On the other hand, the market for out-of-home advertising (OOH) is also showing one of the greatest comebacks globally and is expected to expand at a CAGR of 12.57% to reach INR 5,562 crore in 2026.

The total OTT revenue has more than doubled in 2020, partly driven by the absence of public entertainment due to the pandemic, and an increased time of viewing media at home. This trend continued in 2021 when it recovered by 63.4% in the same year, up by INR 3,706 crore. By the end of 2022, the market is expected to reach INR 4,084 crore.

Video Games

India is the third fastest-growing video games market in the world. The country’s video games and esports revenue, which was at INR 16,200 crore in 2021, is poised to reach INR 37,535 crore by 2026, increasing at a CAGR of 18.3%. 

The market for video games in the nation is mostly focused on social/casual gaming, which accounted for INR 13,244 crore, or 83.9%, of India’s overall video game and esports income in 2021.

Advertising and cinema

The Internet advertising market in India is set to increase at a CAGR of 12.1% to reach INR 28,234 crore by 2026. The smartphone sector dominates the country’s Internet advertising market, accounting for 60.1% of total revenue in 2021, and is forecast to grow at 69.3% by 2026. Display advertising dominates within the mobile sector, accounting for 90.7% of revenue in 2021.

According to the report, India was the third-biggest cinema market in the world and is set to grow at the highest growth rate amongst all the segments at a CAGR of 38.3% by 2026, to reach INR 16,198 crore. More than 379 million cinema tickets were sold in the country. 

Music, Radio, and Podcast

India’s music, radio, and podcast segment grew at 18% in 2021 and is set to grow at a CAGR of 9.8% to reach Rs 11,536 crore by 2026.

Recent Articles

GST collections up by 11% in November

December 2, 2022

Goods and Services Tax (GST) collections in November 2022 stood …

Read More

Manufacturing PMI reaches 3-month high in Nov

December 2, 2022

India’s Manufacturing Purchasing Managers‘ Index (PMI), compiled by S&P Global, …

Read More

Govt. to create 100 mn jobs by 2024: IT Minister

December 1, 2022

The Indian government is targeting to create 100 million jobs …

Read More