Indian M&E sector to clock over Rs 291,000 crore by 2021: PwC

Mumbai: The Indian media and entertainment sector is expected to clock over Rs 291,000 crore by 2021 growing at compounded annual growth rate (CAGR) of 10.5 per cent between 2017 and 2021, according to a PwC report.

"Unlike the global economy, which will see a shrinking contribution from the entertainment and media sector over the outlook period, in India the sector's growth rate will outpace the overall GDP growth rate," said PwC India Entertainment & Media Partner and Leader Frank D'Souza.

"Being a relatively under-developed market in terms of per capita spend on entertainment and media, will allow India to grow at 10.57 per cent over the next five years to an overall size of Rs 290,539 crore," said D'Souza.

"Also, being the least digitised market, will allow the traditional media to grow without being disrupted by digital competition," he added.

The global entertainment and media outlook 2017-2021 report by the consultancy firm noted that television will grow at an overall CAGR of over 11.4 per cent during 2017-21, with subscription TV households expected to reach 16.7 crore by 2021.

"TV subscription revenues are expected to grow from Rs 52,755 crore in 2016 to Rs 90,713 crore in 2021 at a CAGR of 11.6 per cent. Though subscriber numbers are still growing, explosive growth levels of the recent past will not be replicated in the future," it said.

Despite the cable market approaching a saturation point, the report said it will still account for over 55 per cent of the total pay-TV market in 2021.

In terms of advertising, TV is expected to continue to hold the larger share of the pie from Rs 21,874 crore in 2016 to Rs 37,315 crore in 2021 at a CAGR of 11.1 per cent, even though digital advertising is expected to grow at a faster clip of 18.6 per cent.

It noted that unlike the global trend, Indian newspaper industry is expected to have a positive growth of 1.1 per cent CAGR during 2017-2021.

"The Indian newspaper industry continues to grow from Rs 23,161 crore in 2016 to Rs 24,447 crore in 2021, but the growth rate is tailing off as the effects of digital disruption begin to be felt in a market that had long enjoyed print expansion," it said.

The publishing sector is expected to grow from Rs 38,601 crore in 2016 to Rs 44,391 crore in 2021 at a CAGR of 3.1 per cent, with magazines expected to grow at a CAGR of 3.3 per cent during the period.

On digital, it noted that India's internet video segment has produced revenues of Rs 560 crore in 2016 and will grow at 22.4 per cent CAGR to reach Rs 1,540 crore in 2021.

"Transactional video-on-demand will account for over 61 per cent of total internet video revenues in 2021, with many households not wanting to commit to the regular payments of subscription video-on-demand," it said.

It expects the cinema sector to register a strong growth, with box office revenue estimated to rise from Rs 10,957 crore in 2016 to Rs 18,047 crore in 2021, at a CAGR of 10.4 per cent.