𝗜𝘀 𝘁𝗵𝗲 𝗘𝗻𝘁𝗲𝗿𝘁𝗮𝗶𝗻𝗺𝗲𝗻𝘁 & 𝗠𝗲𝗱𝗶𝗮 𝗮 𝗕𝗼𝗼𝗺, 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵, 𝗼𝗿 𝗝𝘂𝘀𝘁 𝗮 𝗠𝗶𝗿𝗮𝗴𝗲? 𝗔 𝗗𝗲𝗲𝗽 𝗗𝗶𝘃𝗲!

The global Entertainment and Media (E&M) industry is on the rise, showcasing a remarkable recovery and growth trajectory that speaks volumes about its resilience and adaptability. In 2023, the total global revenue for the E&M sector reached an impressive $2.8 trillion, marking a 5% increase from the previous year. As we look ahead, this sector is projected to continue its growth at a 3.9% compound annual growth rate (CAGR), with total revenues expected to surpass $3.4 trillion by 2028.

The Indian E&M Landscape

India's media and entertainment sector is experiencing even more robust growth, with projections indicating that it will expand at a staggering 10.2%, reaching approximately ₹2.55 trillion ($30.8 billion) by 2024. This growth trajectory is expected to accelerate further, as the sector is forecasted to hit ₹3.08 trillion ($37.2 billion) by 2026, driven primarily by the digital revolution sweeping across the nation.

Advertising Revenue Surge

A significant contributor to this growth is the advertising revenue, which is anticipated to reach ₹330 billion ($3.98 billion) by 2024. Traditional media still holds a substantial share of the market, contributing around 57% of M&E revenues in 2023, but digital media is rapidly closing the gap.

Key Trends Shaping Global Advertising

Globally, advertising is set to play a pivotal role in driving E&M industry growth, accounting for approximately 55% of this expansion over the next five years. Companies are increasingly recognizing the importance of integrating advertising into their business models to remain competitive. Several key trends are shaping this landscape:

• Data Monetization: Advanced advertising models are emerging that leverage data analytics for targeted marketing.

• Seamless Shopping Experiences: There is a growing trend towards integrating product discovery with purchase and consumption processes.

• Privacy Regulations: Navigating global privacy laws has become essential for companies aiming to maintain growth while respecting user privacy.

Despite facing challenges such as economic uncertainties and regulatory pressures, internet advertising surged by 10.1% in 2023, adding approximately $52.5 billion to global ad revenues.

India’s Flourishing Ad Market

India stands out as one of the fastest-growing advertising markets globally, projected to enter the top ten markets by 2025. The Indian ad market is expected to grow at a CAGR of 10%, reaching around $20.53 billion (₹1.7 lakh crore) by 2028. This growth is fueled by strong performances in sectors such as fast-moving consumer goods (FMCG) and automotive marketing activities.

The OTT Revolution

The Over-the-Top (OTT) streaming market is another area witnessing explosive growth, though it faces challenges from market saturation. Global OTT subscriptions are projected to rise from1.6 billion in 2023 to 2.1 billion by 2028, with a modest CAGR of 5% during this period.

In India, the OTT landscape is vibrant yet competitive, with expectations for total revenue to reach around $4.3 billion by 2028. The market currently boasts approximately 101 million paid subscribers across 58 platforms, half of which are regional players.

Consolidation Trends

Recent mergers and acquisitions highlight a trend towards consolidation within India's OTT sector, as companies seek to enhance their content offerings and competitive edge:

• The merger between Disney+ Hotstar and Viacom18 has created a formidable entity controlling over 63% of the Indian OTT market.

• Warner Bros. Discovery's establishment of its Global Capability Center in Hyderabad underscores international interest in India's burgeoning content creation landscape.

As competition intensifies, smaller platforms may face challenges sustaining operations without strategic partnerships or acquisitions.

Attractive Opportunities Ahead

The Indian video OTT market alone is expected to double from approximately $1.8 billion in 2022 to around $3.5 billion by 2027. The mobile gaming sector also presents lucrative prospects, poised to reach about $7 billion by 2025. Government policies have further bolstered this growth trajectory, with increased Foreign Direct Investment (FDI) limits encouraging international players to invest in India's media landscape.

Challenges Ahead in the Booming Entertainment & Media Industry

Challenges Ahead in the Booming Entertainment & Media Industry

Despite the promising outlook for the globalEntertainment and Media (E&M)industry, several challenges could temper this growth:

Economic Headwinds

Global economic uncertainties pose significant risks to the E&M industry. Factors such as inflation, high interest rates, and recessionary pressures could impact consumer spending patterns and advertising budgets. As companies navigate these economic challenges, they may face difficulties in maintaining revenue growth while managing costs effectively.

Market Saturation

The Over-the-Top (OTT) streaming market is experiencing explosive growth; however, it also faces challenges from market saturation. As more players enter the OTT space, sustaining subscriber growth while maintaining profitability becomes increasingly difficult. Content creation must adapt to meet diverse audience preferences, leading to heightened competition among platforms.

This plateauing effect

Is already pushing leading streamers to reshape their business models and find new revenue streams beyond subscriptions. The big three Western global players in the streaming sector Disney+, Netflix and Amazon Prime Video—all rolled out ad-funded ‘hybrid tier’ offerings, in which consumers agree to view ads in return for paying a lower subscription fee.

Technological Disruptions

Rapid advancements in technology necessitate constant adaptation from E&M companies to stay relevant. The rise of new technologies can disrupt traditional business models and create both opportunities and challenges. Companies must leverage these advancements to enhance their offerings while also navigating the complexities of an evolving digital landscape.

Conclusion: A Bright Future for Creativity

The global E&M industry is not merely growing, it is evolving into a dynamic ecosystem ripe with opportunities for creativity and innovation. As digital platforms continue to gain traction and traditional media adapts to new consumer behaviors, there has never been a better time for content creators and brands alike to unleash their creativity in this thriving environment.

With India leading the charge as one of the fastest-growing markets globally, it stands poised not only as a significant player in the E&M industry but also as a potential content hub for diverse stories that resonate on the world stage. The stage is set for an exciting future where creativity knows no bounds and innovation drives success across all fronts in entertainment and media.

Reference: Perspectives: Global E&M Outlook 2024–2028 | PwC and Media and Entertainment Industry in India, Indian Media Industry (ibef.org)