India is currently the world's fastest-growing over the top (OTT) streaming market and is on its way to become the world's largest OTT market by 2024, a report has stated.
Findings from the Media and Entertainment Outlook 2020, a report by PricewaterhouseCoopers (PwC), suggest that OTT along with Internet advertising, video games and e-sports and music, radio, and podcasts are expected to be the top four segments that see revenue growth in India over the next four years.
The report by PwC is based on publicly available historical data collected from trade associations and government agencies as well as interviews with players and regulators. It covers nearly 53 countries and 14 segments including traditional TV, OTT, cinema, print, books, music and radio, among others.
While areas of traditional media like cinema and print have been adversely affected due to a shift in consumer behaviour, digital E&M (entertainment and media) spending, including OTT subscriptions and mobile data allowance, is being increasingly regarded as a utility. This thereby is seeing these categories emerge as a non-discretionary expense, according to the report.
As for the country's total M&E revenue, it is expected to grow at a robust rate of 10.1 percent to reach $55 billion by 2024. Globally, M&E revenues will contract by 5.6 percent in 2020 over 2019.
According to the report, the new at-home environment has led to the rise of new direct-to-consumer apps, local ‘bite-sized’ entertainment platforms, and user-generated content formats. Investments made by the likes of Netflix, Amazon, Disney+ Hotstar and others in originals as well as acquired content will help subscription video-on-demand make up 93 percent of the total OTT revenue (as compared to 87 percent globally), increasing at a CAGR of 30.7 percent between 2019-2024, from $708 million in 2019 to $2.7 billion.
Since the COVID-19 pandemic led to a shut down of movie theatres and cinemas globally, OTT platforms have seen obvious gains from this. The report says 2020 presents a tipping point as SVoD revenue overtakes theatrical earnings, which, when compared to 2018, SVoD revenues were a third of India’s total box office revenue.
According to Rajib Basu, partner and leader, entertainment and media, PwC India, the function of theatres being shut for most of the year may have contributed to the shift.
Further, the report says that while covid has impacted overall advertiser confidence with segments like print losing advertising by 1.5 percent, Internet has emerged relatively unscathed, estimated to grow at a CAGR of 21.7 percent between 2019 and 2024.
India has made its way to emerge as the sixth-largest Internet ad market in the Asia Pacific with mobile continuing to be the primary driver of revenue due to increased data affordability. According to the report, mobile will continue to be the primary driver of revenue due to increased data affordability, new mobile-first formats, and strategic targeting of consumers.
Other gainers include music and podcasts, with advertising for them estimated to rise by 20 percent.
Fuelled by the uptake of music streaming brands and people turning to motivational, spiritual, fun and fitness content during the lockdown, India’s has emerged as the third-largest podcast listening market in the world after China and the US, with 57.6 million monthly listeners. This segment is expected to touch revenues of $1.7 billion in 2024, increasing at a CAGR of 13.5 percent.
India will also see strong increase at 30.4 percent CAGR in its monthly podcast listener base over the next five years, supported by the entry of foreign players and original content on topics including news, society and culture, the report says.
As for gaming and e-sports, India’s gaming market is expected to touch $3.2 billion in 2024, increasing at a CAGR of 18.8 percent with e-sports alone growing at 33 percent.