India’s media and entertainment (M&E) industry is expected to exceed $40 billion in 2020 growing at a CAGR of 10.3% during 2016-20, according to the PricewaterhouseCoopers Global Entertainment & Media Outlook 2016-20. The four big segments are television, publishing, internet and cinema, apart from five smaller segments—music, radio, out-of-home, video games and business to business. TV, cinema and internet are expected to clock double-digit CAGR over the period, while publishing is slated to grow at a sedate 3.8%.
Television accounts for the biggest chunk of M&E business, driven by rising subscription—$13.29 billion in 2020. India that has the second largest subscription TV base in the Asia Pacific—148.3 million—will add 12 million new subscribers till 2020.
Movies earned $1.64 billion at the box office and are expected to grow at a CAGR of 10.81% to $2.8 billion in 2020. That’s still almost double the 5.79% expected globally.
Yet, India will remain underserved in terms of access to multiplexes. While the movie business is dominated by Bollywood, of late Hollywood movies have started to gain traction. In the internet space, India has the largest mobile internet base after China.
As telcos roll-out LTE services and more people sign up for 3G, internet access revenues will rise to $4.74 billion. The M&E business will be driven by the correlation between the relative size of the country’s under-35 population and growth in M&E spending.
It remains to be seen when India catches up with the world where traditional media is finding it hard to remain relevant.