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India's media, entertainment industry to exceed Rs2,91,000 crore by 2021: Report

TV subscription revenues are expected to grow from Rs52,755 crore in 2016 to Rs90,713 crore in 2021 at a CAGR of 11.6%.


India's entertainment and media sector is expected to surpass Rs2,91,000 crore by 2021 growing at a compound annual growth rate (CAGR) of 10.5% between 2017-2021, according to a report by PricewaterhouseCoopers (PwC).

TV subscription revenues are expected to grow from Rs52,755 crore in 2016 to Rs90,713 crore in 2021 at a CAGR of 11.6%.

In terms of advertising, TV will continue to hold the larger share of the pie from Rs21,874 crore in 2016 to Rs37,315 crore in 2021, even though internet advertising is expected to growth at a much faster rate of 18.6% as opposed to TV advertising at 11.1% from 2017-2021.

Indian cinema will witness a rise of 10.4% of CAGR between 2017-2021 as box office revenue will rise from Rs10,957 crore in 2016 to Rs18,047 crore in 2021. This is one of the few major cinema markets in which 100% digitisation of screens has not yet been achieved — and it is not expected to occur over the forecast period.

Ticket prices for films will rise at a CAGR of 7.9% in the same period.

Publishing in India is expected to grow from Rs38,601 crore in 2016 to Rs44,391 crore in 2021 at a CAGR of 3.1%. Book publishing, in particular, is projected to grow at 6.1% CAGR whereas magazines are expected to grow at a CAGR of 3.3%.

The Indian newspaper industry will grow from Rs23,161 crore in 2016 to Rs24,447 crore in 2021, but the growth rate is tailing off as the effects of digital disruption begin to be felt in a market that had long enjoyed print expansion, a statement read.

"Being the least digitised market, will allow the traditional media to grow without being disrupted by digital competition. Whereas one may be tempted to conclude that India's growth in this sector is divergent from the world's, it will do well for Indian players to keep their eyes on changing landscape globally and prepare for its eventual impact on the Indian market," said Frank D'Souza, partner and leader — entertainment and media, PwC India.

In terms of internet advertising revenue, India is ranked eighth in the Asia Pacific region. One reason behind immature online ad marketing is the lack of internet access among Indians — with fixed broadband penetration remains low at just 6.9% in 2016.

Interestingly, the mobile internet advertising has only comprised 27.6% of total online spending. India's internet video segment has produced revenues of Rs560 crore in 2016 and will grow at 22.4% CAGR to reach a new high of Rs1,540 crore in 2021.

Transactional video-on-demand will account for over 61% of total internet video revenues in 2021.