Indian entertainment industry to grow at 8.3% CAGR to reach Rs 3,65,000 crore by 2028: PwC

The Indian Entertainment and Media (E&M) industry is projected to outpace global growth, achieving a compound annual growth rate (CAGR) of 8.3% to reach Rs 3,65,000 crore by 2028, compared to the global E&M industry’s CAGR of 4.6%, according to PwC India’s Global Entertainment & Media Outlook 2024–28: India Perspective.

India’s demographic and economic advantages, including improved internet connectivity, affordable data, and supportive government policies, are driving this growth. With 91 crore millennials and Gen Zs, 78 crore internet users, and 80 crore broadband subscriptions, India is uniquely positioned to capitalise on E&M innovations.

The advertising market is forecasted to grow at a 9.4% CAGR, reaching Rs 1,58,000 crore by 2028, 1.4 times the global average. Digital advertising, the fastest-growing segment, will expand at a 15.6% CAGR to Rs 85,000 crore by 2028.

India, the fastest-growing OTT market globally, is expected to grow at a 14.9% CAGR, doubling revenue from Rs 17,496 crore in 2023 to Rs 35,100 crore by 2028.

Traditional TV advertising is forecasted to grow at a 4.2% CAGR between 2023 and 2028, while global revenues are projected to decline by 1.6%. By 2026, India is expected to become the fourth-largest TV advertising market.

Gaming and esports revenue is projected to grow from Rs 33,000 crore in 2023 to Rs 66,000 crore by 2028, at a 14.5% CAGR. Cinema revenue will expand at a 14.1% CAGR, while music is expected to grow at a 10.3% CAGR, reaching Rs 10,899 crore by 2028. Print advertising, despite global declines, will grow by 3% in India.

The report highlights significant opportunities for growth and innovation. Internet advertising can benefit from regulatory compliance and advanced data analytics. OTT platforms are poised for further growth through innovations such as ad-supported models and regional narratives that enhance user engagement.

The gaming sector, supported by responsible gaming practices and investments in high-quality AAA games, is set to secure India’s global prominence. Generative AI is expected to revolutionize content creation and personalisation, with over 70% of global companies projected to adopt it by 2025. Early adoption of GenAI in India can enable hyper-personalized content and dynamic advertising campaigns.

The Indian government is supporting the E&M sector through initiatives like the WAVES summit, aimed at fostering global collaboration and innovation. Improved infrastructure has also accelerated the growth of out-of-home (OOH) advertising and other E&M segments.

Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India, stated, “India’s Entertainment & Media sector is on the cusp of a major transformation. According to our 'Global Entertainment & Media Outlook 2024–2028', key growth drivers such as digital advertising, OTT platforms, online gaming, and Generative AI are shaping the future of the industry. These rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape.”

The report also recommends strategies for companies to enhance success. Consolidation among regional or niche players through mergers and acquisitions can help increase scale and efficiency. Social media can be leveraged effectively for content promotion and distribution.

Innovations in content strategies, including esports, online gaming, and indigenous sports, will address changing consumer behaviors. Investments in analytics, audits, and automation are essential for cost optimisation, while GenAI offers new opportunities for creating hyper-personalised content and enhancing user experiences, especially for regional players aiming to match global technological standards.