In keeping with PwC’s Global Entertainment & Media Outlook 2020-2024, the Indian E&M business’s long-term outlook stays sturdy as it’s anticipated to develop at 10.1% CAGR to achieve 55 billion USD by 2024. A Ok-shaped bifurcated restoration is on the horizon by which sectors like OTT, web promoting, video/video games/e-sports, and music and podcasts are anticipated to spearhead progress within the business. Globally, Digital income is predicted to contribute 60% to the whole E&M income by 2020, alone.
When it comes to particular person phase market dimension as a share of complete E&M income, OTT video in India is predicted to see the most important achieve and attain 5.2% by 2024, carefully adopted by web promoting. Segments like promoting and people depending on bodily places are prone to be additional impacted in a unfavorable method whereas digital E&M spending will more and more be considered a non-discretionary expense. Whereas globally, newspapers and magazines are dropping the free on-line mannequin and beginning to ask readers to pay for high quality content material on-line, digital paywalls are but to turn out to be commonplace in India. Moreover, whereas India will stay the world’s largest cinema market in admission phrases, cinema income in India will contract at a -2.6% CAGR to complete US$1.5bn over the following 5 years.
Rajib Basu, Associate & Chief – Leisure & Media, PwC India mentioned, “We discover ourselves in extraordinary occasions, and the pandemic has accelerated ongoing shifts in customers’ behaviour, pulling ahead digital disruption and reaching business tipping factors that wouldn’t in any other case have been reached within the subsequent few years. Our analysis exhibits that India would be the fastest-growing leisure and media market globally by way of pure shopper income.”
Popping out of COVID-19, a Ok-shaped bifurcated restoration is predicted by which some sectors rise whereas others fall. Over the following 5 years, the outlook stays extremely constructive for digital led segments reminiscent of OTT, Web Promoting, On-line Gaming and Music & Podcasts that have been completely positioned to satisfy customers the place they’re in 2020 – predominantly at house and on-line.
Nonetheless, corporations concurrently have to organize to satisfy them the place they are going to be two years from now. They might want to construct and keep direct-to-consumer relationships, provide sufficient differentiation or scale to compete, and unlock better worth utilizing the suitable applied sciences. This can be a distinctive window of alternative for E&M companies to remodel and make themselves extra resilient and related for the long run.” added Rajib Basu.
Prime 4 segments to advance quickly:
- OTT Video: India holds probably the most potential of any market on the planet and its breakneck charge of progress will see complete OTT video income overtake South Korea, Germany and Australia to leap to being the sixth-largest market in 2024. Subscription video on demand would be the prime driver of income, growing at a 30.7% CAGR from US$708mn in 2019 to US$2.7bn in 2024. OTT video progress is coming from each inside and out of doors the house as Web-connected units proliferate as the brand new ‘at-home’ atmosphere has led to the rise of direct-to-consumer apps, native ‘bite-sized’ leisure platforms and user-generated content material (UGC) codecs.
- Web Promoting: India is now the sixth-largest Web promoting market within the Asia Pacific area. Cellular would be the major driver of income within the Web promoting market income as a consequence of elevated knowledge affordability, new mobile-first codecs, skill to measure, and strategic focusing on. Nonetheless, from a worldwide perspective, Web promoting in India stays underdeveloped and has large headroom for progress.
- Video, Video games & E-sports: Gaming and e-sports are capitalizing on the necessity to carry reside experiences into the house in additional customized and extra participating methods. E-sports represented lower than 1% of total market in 2019, however has turn out to be one of many fastest-growing segments at this time with a projected 33% CAGR by 2024. Nonetheless, regardless of surging progress and large potential, the sector tackles with the most important problem of low ranges of app monetisation
- Music, Radio & Podcasts: Podcast business was already experiencing fast progress previous to the COVID-19 outbreak. Fuelled by the uptake of music-streaming manufacturers, the general area is predicted to develop at a 13.5% CAGR, to complete income of almost US$1.7bn in 2024. India can even see sturdy improve at a 30.4% CAGR in its month-to-month podcast listener base over the following 5 years, supported by entry of international gamers and authentic content material on subjects together with information, society and tradition.
Because the business navigates into the post-pandemic world, one can witness new alternatives for capturing progress:
- Gamers bolster subscription choices – With customers more and more paying a month-to-month price to entry a library of leisure content material, reminiscent of movies, music, content material, health and so forth., media and leisure business gamers are catching on to the worth of subscription-based fashions to usher in enterprise. Optimising income combine or pricing fashions to emerge extra resilient and seize an even bigger share of the pockets would be the focus.
- Bodily occasions search for digital options – One other alternative made extra compelling by the pandemic is bringing reside experiences into the house in a extra customized and fascinating method. Digital areas—e-commerce platforms, digital occasion areas, gaming channels, podcasts—are evolving into highly effective new platforms for advertising. Creating new content material propositions will assist realise new income streams.
- OTT will thrive in 2020 as cinema and conventional TV degrow – OTT sector will immediately profit from the closure of cinemas, as some movie studios select to fast-track new releases to house video platforms. Since OTT platforms provide comfort and accessibility to customers who’re prone to maintain on to their new habits of streaming ‘at house’, international SVOD income could overtake field workplace spend very quickly.
- Landmark acquisitions are out; shopping for progress and money flows are in. – As corporations search for methods to navigate obstacles, strategic investments & alliances seeking scale and progress will likely be essential to find out success within the E&M media business.