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India a bright spot in bleak global outlook for entertainment & media: PwC

Future of media not very entertaining

Multimedia

Multimedia

Vanita Kohli-Khandekar Pune

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It is the best of times and the worst of times. The total global entertainment & media (E&M) revenue rose 5.4 per cent year-on-year in 2022 to $2.32 trillion. It represents a sharp fall from the 10.6 per cent growth rate in 2021. And in each of the next five years, the rate of growth will decline sequentially, so that by 2027 revenue will grow just 2.8 per cent from 2026.

That is the big takeaway from PwC’s annual Global Entertainment and Media Outlook (2023-27).
 
The causes are myriad. Many segments, like podcasts, that saw a surge in revenue and audiences are now settling down to steadier growth. “But the main challenge — in 2022 and in the future — is consumer spending. Taxed by inflation, weary from the lingering effects of the pandemic and facing the uncertainties of war and geopolitical instability, consumers are pulling back,” says the report.
 
Consumer spending or the money consumers pay to access media and entertainment through subscription or buying tickets will grow at a compounded annual growth rate (CAGR) of just 2.4 per cent between 2022 and 2027 against over 7 per cent soon 
after the pandemic in 2021. Instead, advertising, which has overtaken consumer spending, will be powering the growth of this business, says the report. Between 2022 and 2027, global advertising revenue will rise from $763.7 billion to $952.6 billion at a 4.5 per cent CAGR.
 
If the pace of E&M expansion is set to decline in each of the next five years, it begs the question: why doesn’t digital seem to be pulling its weight in the overall growth? The report analyses that the declining costs of producing and distributing programming, films, articles or music online has brought a problem of plenty. “People may be spending more time in digital entertainment and media environments, but it won’t cost them more. As a result, consumer spending per capita on E&M will decrease as a share of overall spending,” it states.
 
India will remain a bright sport in this global outlook. E&M revenue grew 15.9 per cent in 2022 compared to 2021, albeit on a much smaller base. The Indian market is poised to grow at a CAGR of 9.7 per cent in the forecast period to reach $74 billion in 2027. The business-to-business market, streaming and internet advertising are powering this growth, says the report.

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First Published: Jul 24 2023 | 10:03 PM IST

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