Cinema, OTT, video gaming and internet advertising will drive the growth, the report said.
With growing mobile penetration and falling data prices, the domestic entertainment and media industry is expected to reach Rs 3,53,609 crore by 2022, growing at a compound annual growth rate (CAGR) of 11.6% between 2018 and 2022. The industry is also expected to move into top 10 largest OTT (over-the-top) video markets in the same period with a growth rate of 22.6% CAGR to Rs 5,595-crore revenue despite piracy problems, according to a report by PricewaterhouseCoopers (PwC) report titled Global Entertainment and Media Outlook (2018-2022).
Frank D’Souza, partner & leader, entertainment and media, PwC India, said: “It is not surprising that India continues to be one of the fastest growing entertainment and media markets. However, what is encouraging is how non-linear media is expected to grow on the back of increase in device penetration, lower internet prices, consumer content demand and portability preferences. This will manifest in significant growth in OTT, e-sports and internet advertising.”
Cinema, OTT, video gaming and internet advertising will drive the growth, the report said. In the case of cinema, for instance, the total revenue is expected to rise at a 9.4% CAGR over the forecast period. Average admission prices will move up over the forecast period and are set to reach Rs 78 by 2022, up from Rs 55 in 2017 and representing an increase at a 6.9% CAGR.
The number of screens are also expected to increase to 12,775 in 2022, up from 11,672 in 2017 at a 1.8% CAGR. The main area of growth in exhibition is in digital screens. There are expected to be 5,532 digital screens in 2022, a significant addition to the 2017 figure of 3,524 and representing an increase at a 9.4% CAGR.
In the OTT segment, despite problems with piracy, revenue has grown rapidly in recent years and reached Rs 2,019 crore in 2017. The growing competition among international and regional subscription on demand video (SVOD) platforms is evident with over 70% of revenue in 2017 attributable to subscription services. This trend will grow and by 2022, 79.4% of the total market revenue is expected to be from SVOD, the report said.
The Indian traditional gaming is expected to grow by a 55.9% CAGR over the forecast period from Rs 1,645 crore to Rs 14,772 crore by 2022 (surpassing the traditional market in 2018).