A Price Waterhouse Coopers (PwC) study of India’s entertainment and media sector says that TV, cinema, Internet and even newspaper sectors are all healthy. Moreover, the nation’s broadcasting sector is likely to see impressive CAGR of 11.4 per cent between 2017-2021, and helped by strong growth in the pay-TV sector.
PwC forecasts that TV subscriptions will quickly grow to 154 million households (as a comparison the USA has 98 million). However, PwC points out that while globally subscriptions to pay-TV is growing at a CAGR of just 2.3 per cent (2016-2021), India is growing at a much faster rate of 11.6 per cent (CAGR).
Frank D’Souza, Partner & Leader/Entertainment & Media, PwC India, adds in the report: “Unlike the global economy, which will see a shrinking contribution from the Entertainment and Media sector over the Outlook period, in India the sector’s growth rate will outpace the overall GDP growth rate. Being a relatively under-developed market in terms of per capita spend on entertainment and media, will allow India to grow at 10.57 per cent over the next five years. Also, being the least digitised market, will allow the traditional media to grow without being disrupted by digital competition. Whereas one may be tempted to conclude that India’s growth in this sector is divergent from the world’s, it will do well for Indian players to keep their eyes on changing landscape globally and prepare for its eventual impact on the Indian market.”
However, D’Souza also cautions that what he describes as the “explosive growth” levels of TV subscriptions over the past few years will not continue. By 2021 the cable TV sector will still account for more than 55 per cent of the total pay-TV market.