The media and entertainment industry is expected to grow at an annual rate of over 10 per cent to reach USD 55 billion by 2024, according to a report.
The sector's growth, which would be like a K-shaped bifurcated recovery, is on the horizon led by over-the-top (OTT), online advertising, video/games/e-sports, music and podcasts, PwC India said in the report released on Thursday.
The advisory has a robust long-term outlook as it is expected to grow at 10.1 per cent compound annual growth rate (CAGR) to reach USD 55 billion by 2024.
In terms of individual segment market size as a percentage of total industry revenue, OTT video is expected to see the largest gain and reach 5.2 per cent by 2024, closely followed by online advertising.
Though India will remain the world's biggest cinema market in admission terms, cinema revenue will contract at (minus) 2.6 per cent CAGR to total USD 1.5 billion over the reporting period.
"Our research shows that India will be the fastest growing entertainment and media market globally in terms of pure consumer revenue," the report said.
Over the next four years, the outlook remains highly positive for digital segments such as OTT, onine advertising, online gaming and music and podcasts that were perfectly positioned to meet consumers where they are in 2020, predominantly at home and online.
The report sees the OTT space as the key driver of growth and revenue overtaking South Korea, Germany and Australia to become the sixth-largest OTT market by 2024.
Subscription video on demand will be the prime driver of revenue, increasing at a 30.7 per cent CAGR from USD708 million in 2019 to USD2.7 billion in 2024.
The exponential growth of OTT is at the cost of the cinemas and traditional TV, which has de-grown already in 2020. OTT is directly benefiting from the closure of cinemas, as some film studios choose to fast-track new releases to home video platforms.
When it comes to online advertising, India is already the sixth-largest market in the Asia Pacific region, said the report.
It added that mobile will be the primary driver of revenue in this space due to increased data affordability, new mobile-first formats, ability to measure, and strategic targeting.
Gaming and e-sports are capitalising on the need to bring live experiences in more personalised and more engaging ways. E-sports was under 1 per cent of overall market in 2019 but has become one of the fastest-growing segments with a projected 33 per cent CAGR by 2024.
The podcast industry was already experiencing rapid growth prior to the pandemic. Fuelled by the uptake of music-streaming brands, the overall space is expected to grow at a 13.5 per cent annually till 2024 to USD 1.7 billion.