Media-entertainment to exceed USD 40,000 million by 2020

The Indian media and entertainment industry is expected to exceed USD 40,000 million by 2020, growing at a compound annual growth rate (CAGR) of 10.3 per cent, according to a report.
"India's entertainment and media sector is expected to grow steadily over the next four years. The industry is expected to exceed USD 40,000 million by 2020 growing at a CAGR of 10.3 per cent between 2016 and 2020," PwC's Global Entertainment and Media Outlook 2016-20 said.
It believes that TV advertising and subscription will grow at an overall CAGR of over 13 per cent during 2016- 20, aided by regulation-driven addressibility, increase in cable and satellite homes and slower than expected cannibalisation by growth in digital sector.

India is the second-largest subscription TV market in the Asia Pacific region in terms of household numbers, reaching 148.3 million subscription TV households in 2015.
It noted that the bulk of the growth in subscribers will be driven by the satellite direct to home (DTH) platform, adding over 12 million households in the next five years.
TV subscription revenue reached USD 7.33 billion in 2015, up from USD 4.81 billion in 2011 and the report said with the growth rate showing little sign of abating, TV subscription revenue is increasing at 12.6 per cent CAGR and is expected to reach USD 13.29 billion in 2020.

"Indian TV advertising revenue has consistently grown throughout the global recession and India will be one of only seven countries to achieve double-digit growth over the forecast period at an 11.7 per cent CAGR. This will generate revenue of USD 5.54 billion in 2020, compared with USD 3.19 billion in 2015. The pace at which TV's reach has increased is seeing a shift in overall advertising budgets towards television," it said.
Multichannel TV advertising revenue reached USD 2.91 billion in 2015 and is expected to grow at 12.1 per cent CAGR to generate revenue of USD 5.13 billion in 2020.

It observed that with the low base, revenues on the digital/internet platforms will grow at a significant pace but unlikely to take over traditional sectors during 2016-20.