Digital media is growing in popularity

India, which will overtake both France and the UK to become the fifth largest newspaper market by 2026, will also be the only country to steadily increase total newspaper printing revenue over the forecast period. five years, according to PwC

New Delhi: India’s media and entertainment industry is expected to grow at a CAGR of 8.8% and reach Rs4.30 lakh crore by 2026, according to a report by global consultancy PwC.

Growth would be driven by digital media and advertising through deeper penetration of internet and mobile devices in the domestic market, as well as traditional media, which will maintain its steady growth, according to the report. TV advertising is expected to reach over Rs43,000 crore by 2026. This will make India the world’s fifth largest TV advertising market, after the US, Japan, China and the UK.

India’s media and entertainment industry is expected to be around Rs3.14 crore in 2022, registering an overall growth of 11.4%, according to PwC’s Global Entertainment & Media Outlook 2022-2026.

India’s OTT video services are expected to grow into a Rs 21,031 crore industry over the next four years by 2026, of which Rs 19,973 crore will come from subscription services and Rs 1,058 crore from transactional VOD (video on demand).

“Subscription services are driving this rapid growth, accounting for 90.5% of revenue in 2021 and expected to account for 95% in 2026,” he said.

The population size and widespread use of mobile internet video will support the rapid growth of the OTT market over the forecast period. In particular, the adoption of 5G will enable low latency services such as OTT video streams, which will significantly boost the industry.

“As infrastructure improves over the long term, the scale and diversity of the population will lend itself to a wide range of platforms,” ​​the report adds. TV advertising would reach Rs 43,568 crore in 2026 from Rs 35,270 crore in 2022, registering a growth of 23.52%. “After several years of rapid expansion, the Indian TV advertising market was hit by the Covid-19 recession in 2020 causing a decline of 10.8% from 2019 levels. This turned out to be a temporary setback. With the country returning to economic growth in 2021, this segment grew by 16.9% to Rs 32,374 crore,” he said.

The Indian internet advertising market is expected to grow at a CAGR of 12.1% to reach Rs 28,234 crore by 2026.

“Given India’s largest mobile internet access market, the mobile sector dominates the country’s internet advertising market, accounting for 60.1% of total revenue in 2021, rising to 69.3% of by 2026,” the report said, adding that “display advertising dominates the mobile sector, which accounts for 90.7% of revenue in 2021, but its share will drop to 88.9% of the total in 2026.”

India will see an increase in total newspaper revenue at a CAGR of 2.7% from Rs 26,378 crore in 2021 to Rs 29,945 crore in 2026.

“India, which will overtake both France and the UK to become the fifth largest newspaper market by 2026, will also be the only country to steadily increase total newspaper printing revenue in the five-year forecast period. India will also be the only country in the world to increase sales of printed daily newspaper copies (in volume) during the forecast period,” the PwC report states.

The 1.3 CAGR increase – to an average of 139 million average daily print newspaper sales in 2026, or one-third of the global daily total – will mean that India will overtake China as the world’s largest market for the readership of printed editions in 2025.

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