India Poised for Rapid Growth in Global M&E Sector: PwC Report

By Pickle August 14, 2024

In a recent report by PwC titled “Global Entertainment & Media Outlook 2024–2028,” India has emerged as a significant player in the entertainment and media (E&M) sector, demonstrating exceptional growth potential. As the global E&M industry is projected to expand from US$2.8 trillion in 2023 to US$3.4 trillion by 2028, India stands out with its dynamic and rapidly evolving market.

India’s Ascendant E&M Landscape

India is highlighted as one of the fastest-growing markets in the report, with substantial advancements across various E&M segments. The country’s growth is fueled by its large, diverse population and increasing digital penetration. Notably, India’s OTT (over-the-top) video streaming market is set to be the world’s fastest-growing, reflecting the country’s burgeoning demand for digital content. By 2028, India’s OTT revenues are expected to reach US$4.3 billion, supported by a vast viewership that is particularly enthusiastic about sports content, especially cricket.

Transformative Business Models

The PwC report underscores the necessity of business model reinvention (BMR) for sustained growth in the E&M industry. This is particularly relevant for India, where companies are increasingly adopting innovative approaches to capture market share. The consolidation trend in India’s OTT sector, illustrated by the merger between Disney’s Star India and Viacom18, highlights the industry’s shift towards creating robust, scalable platforms to meet the growing demand for diverse content.

Advertising: A Major Growth Driver

Advertising emerges as a critical growth driver in the E&M industry, with global advertising revenues projected to grow at a 6.7% CAGR, reaching nearly double the 2020 levels by 2028. In India, this trend is mirrored by significant investments in internet advertising, which includes retail media and connected TV ads. As companies pivot to more sophisticated advertising models, leveraging data monetization and aligning with global privacy regulations, India’s E&M sector is poised to benefit from these developments.

Gaming: An Emerging Giant

The report also highlights the rapid growth of the gaming industry in India, which is projected to see substantial increases in revenue. With a young, tech-savvy population, India is becoming a key market for app-based social and casual gaming. The sector’s growth is further bolstered by government support and increasing investments in gaming infrastructure and talent development.

Generative AI: The Next Frontier

Generative AI (GenAI) is identified as a transformative force within the E&M sector, offering significant opportunities for efficiency and innovation. In India, the application of GenAI in content creation and advertising is expected to streamline production processes and enhance creative output. The rapid adoption of GenAI tools positions India at the forefront of technological advancements in the E&M industry.

High-Growth Geographies and Segments

PwC’s report places India among the high-growth geographies, with its E&M market projected to expand at a 7.1% CAGR. This growth trajectory positions India as a key player in the global E&M landscape, attracting international investments and fostering a vibrant ecosystem of creativity and innovation.

As the global E&M industry navigates through disruptions and technological advancements, India’s dynamic market presents a plethora of opportunities. The PwC report underscores India’s potential to become a global powerhouse in the E&M sector, driven by robust growth in OTT streaming, gaming, and advertising, alongside innovative business models and the strategic adoption of GenAI. With continued investment and a focus on fostering talent and creativity, India is set to play a pivotal role in shaping the future of the global entertainment and media landscape.