The closure of theatres due to the Covid-19 pandemic benefited the OTT sector, according to findings of PwC’s Global Entertainment & Media Outlook 2020-2024.
OTT video in India is expected to see the largest gain and reach 5.2% by 2024 while cinema revenue in India will contract at a -2.6% CAGR to total $1.5bn over the next five years, the report said.
It said the subscription video-on-demand service will drive revenue, increasing at a 30.7% CAGR from $708mn in 2019 to $2.7bn in 2024. India’s OTT market is set to be the sixth-largest market, to overtake South Korea, Germany and Australia by 2024.
The report forecasts a K-shaped recovery where OTT video, video games, esports, music, radio, and podcasts will be with the highest CAGR. Meanwhile, the segments linked to advertising and where consumption happens in physical spaces may be negatively impacted.
Internet advertising will continue to grow as mobile remains the primary growth driver due to increased data affordability, new mobile-first formats, ability to measure, and strategic targeting.
Internet advertising in India is expected to grow at a CAGR of 21.7% and reach the $3.8-billion mark by 2024, the report suggests.
Besides, OTT and gaming, the podcast industry is growing in the country. With 57.6mn monthly listeners, India is the third-largest podcast listening market in the world after China and the US. This growth is coming as we see partnerships with esports and social media platforms. The overall space is expected to grow to total revenue of nearly $1.7bn in 2024, at a 13.5% CAGR.
India’s total M&E revenue will grow at a robust rate of 10.1% to reach $55 billion by 2024 even though global M&E revenues will contract by 5.6% in 2020 over 2019.
Speaking about the report, Rajib Basu, Partner & Leader, Entertainment & Media, PwC India said, "We find ourselves in extraordinary times, and the pandemic has accelerated ongoing shift in consumer behaviour, pulling forward digital disruption and reaching industry tipping points that wouldn’t otherwise have been reached in the next few years. Our research shows India will be the fastest-growing entertainment and media market globally in terms of pure consumer revenue.”