India’s Entertainment and Media (E&M) industry is poised to outpace global growth, according to a PwC report released on December 10, 2024. The industry is expected to expand at a compound annual growth rate (CAGR) of 8.3%, reaching an impressive US$ 43.03 billion (Rs. 3,65,000 crore) by FY28. This growth trajectory is fueled by India’s demographic strengths, such as a large, youthful population, alongside its economic expansion, increasing internet penetration, and favorable government policies.

Key Growth Drivers:

• Demographics and Connectivity: India’s 91 crore millennials and Gen Zs, along with 78 crore internet users and 80 crore broadband subscriptions, form a strong foundation for the country’s digital and entertainment growth. The expansion of affordable data plans and improved internet connectivity positions India to benefit from rapid advancements in the entertainment sector.

• Advertising Market: The advertising market in India is projected to grow at a CAGR of 9.4%, reaching US$ 18.63 billion (Rs. 1,58,000 crore) by 2028. This expansion is largely driven by the digital advertising sector, which is forecast to experience the fastest growth at a 15.6% CAGR, reaching US$ 10.02 billion (Rs. 85,000 crore) by FY28. The surge in online platforms and the rise of targeted, data-driven advertising are major factors behind this rapid growth.

• OTT Market: India’s Over-the-Top (OTT) media market is expected to grow at a 14.9% CAGR, with revenues predicted to double from US$ 2.06 billion (Rs. 17,496 crore) in FY23 to US$ 4.14 billion (Rs. 35,100 crore) by FY28. This is attributed to the growing demand for digital content and the expansion of streaming platforms catering to diverse Indian audiences.

• Gaming and Esports: The gaming and esports sector in India is also set for robust growth, with revenues projected to climb from US$ 3.89 billion (Rs. 33,000 crore) in FY23 to US$ 7.78 billion (Rs. 66,000 crore) by FY28, at a 14.5% CAGR. The increasing popularity of mobile gaming and the rise of esports competitions contribute to this growth.

Traditional Media Trends:

While digital platforms are expanding rapidly, traditional TV advertising in India is still on the rise, growing at a 4.2% CAGR, in contrast to the global decline of 1.6% in the traditional TV segment. This highlights India’s continued engagement with linear television and its place in the broader media landscape.

Technological Advancements:

The report also notes the impact of emerging technologies like Generative AI, which is expected to revolutionize content creation and personalization in India’s entertainment industry. The early adoption of Generative AI will allow Indian content creators to produce hyper-personalized content and design dynamic advertising campaigns, further accelerating the industry’s growth.

Generative AI can enable companies to cater to a vast array of user preferences by generating customized experiences at a scale never seen before. As AI-generated content becomes more prevalent, the consumer experience will be shaped by more interactive, tailored interactions, which will be a key driver for new types of media consumption.

Government Support:

India’s government has been actively supporting the growth of the entertainment and media sector. Initiatives like the WAVES summit (World Audio-Visual and Entertainment Summit) and investments in infrastructure are helping foster the rise of sectors like Out-of-Home (OOH) advertising. The government's focus on digital infrastructure has been critical in helping companies tap into emerging markets and develop innovative solutions that are on par with global standards.

Outlook:

With the country embracing digital transformation and innovations like Generative AI, India’s entertainment and media industry is well-positioned to become a global leader in the coming years. The growth of digital and OTT platforms, coupled with the increasing demand for gaming and esports, presents substantial opportunities for businesses in India and abroad.

The PwC report underscores India’s immense potential in the E&M sector, suggesting that businesses are in an excellent position to innovate, expand, and capitalize on the sector’s dynamic and rapidly evolving nature.

The Upcoming IPOs in this week and coming weeks are Sai Life Sciences, Mobikwik, Vishal Mega Mart, Supreme Facility, Purple United, Yash Highvoltage, International Gemmological, Inventurus Knowledge, Rosmerta Digital and Avanse Financial.The Current active IPO is and Jungle Camps, Toss The Coin and Dhanlaxmi Corp.For more details on upcoming IPOs, you can visit our page at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with the latest news on IPO updates on Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in Choice Broking FinX.