The report also said that despite the pandemic, the Indian M&E sector has shown remarkable resilience.
“Technological advancement and deepening of internet access will continue to influence the way Indians consume content. Our outlook shows that the demand for great, localised content, increased internet penetration and the creation of new business models will drive the industry’s growth for the next five years,” said Rajib Basu, Partner & Leader – Entertainment & Media, PwC India.
As per the outlook, India is the fastest-growing internet advertising market in the world with an expected CAGR of 18.8 per cent during 2020-2025.
Growth in mobile ad revenue overtook wired revenue in 2019 and is expected to be 74.4 per cent of the total internet advertising revenue of Rs 30,471 crore by 2025, the report said.
In 2020 revenue from mobile internet advertising in India was Rs 7,331 crore and will rise to Rs 22,350 crore in 2025 – increasing at a 25.4 per cent CAGR.
“This makes India the fastest-growing mobile ad market in the world, reflecting the potential for growth, with over half the population yet to take up a mobile Internet subscription in 2020,” PWC said in the report.
TV advertising, meanwhile, has continued to expand in 2020, despite COVID. The report noted that the sector was at Rs 35,015 crore, making India the fourth-largest TV ad market globally after the US, China and Japan.
It has forecasted that TV advertising will further grow at a 7.6 per cent CAGR, to Rs 50,586 crore in 2025.
Multichannel advertising will account for nearly 92 per cent of the total TV advertising market in 2025, while online TV advertising will make modest inroads in the forecast period, with broadband penetration remaining extremely low at 7.3 per cent of households.
Among other sectors, cinema, where box-office revenues plunged by 75 per cent year-on-year in a Covid-19-hit 2020 (to Rs 2,652 crore), producers turned to digital streaming to make up the shortfall.
PWC forecasts that box-office revenue is expected to recover and grow at a CAGR of 39.3 per cent grossing up Rs 13,857 crore by the end of 2025.
The overall segment comprising box-office and cinema advertising is predicted to grow back to pre-Covid level by mid of 2023.
The report also said that the gaming market in India continues to enjoy exceptional growth and shows enormous potential. While video games and esports revenue reached Rs 11,250 crore in 2020, it is set to expand to Rs 24,213 crore in 2025, at 16.5 per cent CAGR.
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