Insights

The Indian entertainment industry is experiencing significant growth, driven by evolving consumer preferences, increased internet access, and emerging technologies. Here are some key points:

1. Growth Rate: The industry is expected to grow at a compound annual growth rate (CAGR) of 9.7%.

2. Projected Value: By 2027, the industry is projected to reach $73.6 billion.

3. Key Drivers: Over-the-top (OTT) platforms, the gaming sector, and internet and out-of-home advertising are major growth drivers.

4. Data Consumption: Data consumption in India is projected to increase to 979.1K petabytes (Pb) in 2027.

5. Internet Access Revenue: Internet access in the country is expected to generate a revenue of USD 29.1billion around the same time.

This growth is creating new opportunities and shaping the future of the entertainment industry in India.

The Indian regional entertainment industry is witnessing significant growth, driven by the rise of digital media and the deeper penetration of internet and mobile devices. Here are some key points:

1. OTT Video: The total OTT revenue more than doubled in 2020, partly driven by the absence of public entertainment and additional time at home. This trend continued in 2021, with revenue nearly doubling again. While growth rates will slow, the market will still expand at an impressive 14.1% CAGR to reach INR 21,032Cr in 2026.

2. Newspapers & Consumer Magazines: India will see an increase in total newspaper revenue at a 2.7% CAGR from INR 26,378Cr in 2021 to INR 29,945Cr in 2026. India will also be the only country in the world to grow daily print newspaper copy sales (by volume) during the forecast period.

3. Out-Of-Home Advertising: India’s out-of-home (OOH) advertising market is demonstrating one of the strongest comebacks globally and is predicted to grow at 12.57% CAGR to reach INR 5,562Cr in 2026.

4. Video Games & Esports: India’s total video games and esports revenue was INR 16,200Cr in 2021, and is forecasted to reach INR 37,535Cr by 2026, increasing at a 18.3% CAGR.

This growth is creating new opportunities and shaping the future of the regional entertainment industry in India.

The Indian entertainment industry, while experiencing significant growth, also faces several challenges:

1. Piracy and Copyright Infringement: Unauthorized distribution and consumption of content is a major issue that leads to significant revenue loss.

2. Monetization and Revenue Models: With the rise of digital media, finding effective ways to monetize content and generate sustainable revenue streams is a challenge.

3. Quality Content Creation and Discoverability: As the volume of content increases, ensuring the creation of high-quality content and making it discoverable to the right audience becomes difficult.

4. Regulatory and Censorship Issues: Navigating the regulatory landscape and dealing with censorship issues can be complex and challenging.

5. Changing Consumption Patterns: The industry needs to adapt to changing consumer preferences and consumption patterns, particularly with the rise of digital media.

6. Diversity and Inclusion: Ensuring representation and inclusivity in content creation is another challenge that the industry faces.

7. Competition for Audience Attention: With the proliferation of platforms and content, competing for audience attention is increasingly challenging.

These challenges require innovative solutions and strategies for the industry to continue its growth trajectory.