Professional Documents
Culture Documents
Indian Summary
Indian Summary
com/outlook
India-
strong growth in digital
segments while traditional
media remain resilient
Over the five years to 2018, the 11.6% CAGR
rise projected for total entertainment and media
spending in India will be narrowly ahead of
Chinas 10.9% and more than double the 5.0%
CAGR projected for the industry globally.
US$22.9bn US$1.8tr
Growth 2013-2018
11.6% 5%
CAGR CAGR
Top 3 fastest growing segments 2013-2018
Internet access is the second-largest However, Internet access spending TV advertising will continue to
segment in Indian entertainment and in India in 2018 will still be less than lead the Indian advertising market
media, with revenues of US$3.1bn half the size of TV subscriptions (ahead of newspapers), with total
in 2013 well behind first-placed and licence fees, which will rise at TV advertising reaching US$5.0bn
TV subscriptions and licence fees at a CAGR of 13.9% to US$12.9bn. in 2018 almost six times the
US$6.7bn. Internet access will be the size of Internet advertising.
The fastest-growing segment
third-fastest growing entertainment
will be Internet advertising. The second fastest-growing segment
and media segment in India over the
While relatively small in 2013, at of entertainment and media in India
next five years, expanding at a CAGR
US$341mn, spending on Internet over the next five years will be video
of 15.0% to reach US$6.2bn in 2018.
advertising will surge at a CAGR games, expanding at a CAGR of
of 20.4% to US$862mn in 2018. 16.7% to reach US$972mn in 2018.
This means the growth in Internet All segments of entertainment will
advertising will strongly outpace see spending rise during the five
TV advertising, which will rise at a years, with music experiencing the
CAGR of just 12.8% through 2018. slowest growth at a 4.8% CAGR.
However, despite this growth gap,
The market for video games in India mobile subscriber base. By 2018,
was worth US$450mn in 2013, and is mobile games revenues having
forecast to rise to US$972mn in 2018 overtaken physical console games
a CAGR of 16.7%, far outstripping the in 2013 will reach US$426mn,
6.2% projected for video game reve- accounting for 44% of Indias
nues globally. Growth in India will be total video games market.
fuelled by rising spending in all video
Online games revenue will also
games segments apart from physical
continue to grow, from US$40mn
PC games, with especially rapid growth
in 2013 to US$79mn in 2018,
in video games advertising and the
a CAGR of 14.3%. This growth
overall digital and mobile games
will be driven by rising Internet
segments.
access, faster broadband speeds,
Mobile games will be the fastest and developers switching to
growing sub-segment of Indias online video games from more
video games consumer market easily pirated physical formats.
through 2018, with a projected
Console games revenue in India
CAGR of 19.7%, driven by the
was US$161mn in 2013, and
increasing popularity of social and
will reach US$305mn in 2018, a
casual gaming, and an expanding
CAGR of 13.6%. With most of the
population under the age of 35,
India presents attractive growth
opportunities for the console
By 2018, mobile games revenues having
games industry, especially with the
overtaken physical console games in 2013 falling cost of PS3s and Xbox 360.
will reach US$426mn, accounting for
44% of Indias total video games market.
Indias newspaper industry is thriving. This resilience will be reflected newspaper advertising revenue
Not only is the sector actually growing in the industrys revenues in the (both print and digital) rising at a
a feat envied in most countries coming years. Overall spending on CAGR of 7.7% to reach US$3.6bn
around the world but India is also newspapers both circulation and in 2018, and total newspaper
among the worlds fastest-growing advertising will rise at a CAGR circulation revenue rising at a
newspaper markets. Circulation has of 7.5% over the five years to 2018, CAGR of 7.1% to reach US$1.7bn.
boomed from an average daily unit reaching US$5.3bn. In contrast,
Relatively low Internet penetration
circulation total of 109.9mn copies global revenues from newspaper
in India is limiting the threat, seen
in 2009 to 130.6mn in 2013, and is publishing will rise at a CAGR of
elsewhere, posed by digital media to
forecast to keep rising to 161.6mn just 0.1% over the same period. As
newspaper revenues. Digital news-
copies in 2018. a result, Indias share of the global
paper revenues will grow rapidly
newspaper market will increase
during the five-year forecast period,
from 2.4% in 2013 to 3.4% in 2018.
with digital newspaper advertising
Newspaper advertising is the expanding at a CAGR of 20.8% and
countrys second-largest advertising digital circulation revenues leaping
medium after TV. In 2013, total by 87.1% compounded annually.
newspaper advertising revenue But both these digital revenue
was approximately double total streams will still account for only a
newspaper circulation revenue. tiny proportion of overall spending
This ratio will continue, with total on newspapers in India in 2018.
Marcel Fenez
Global leader, entertainment and media,
marcel.fenez@hk.pwc.com
Smita Jha
India leader, entertainment and media,
smita.jha@in.pwc.com
2014 PricewaterhouseCoopers LLP. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network.
Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. XX-00-0000