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India’s Entertainment & Media industry to cross INR 451,373 Cr by 2023: PwC Report

The Indian Entertainment & Media industry is expected to reach INR 451373 Cr by 2023, growing at a compound annual growth rate (CAGR) of 11.28% between 2018 and 2023. According to PwC’s Global Entertainment & Media Outlook 2019–2023, the Indian entertainment and media industry is expected to reach INR 451,373 Cr by 2023, growing at a compound annual growth rate (CAGR) of 11.28% between 2018 and 2023.

Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, “India is the fastest growing entertainment and media market globally and is expected to keep that momentum. Our research shows that in the next 5 years India will see significant growth in OTT, E-sports and Internet advertising. Growth in these sub-sectors spurs from the growing trends around personalization and increased digitalization. Today’s consumer can now control their own media consumption through an expanding range of smart devices and curate their personal selection of channels using OTT services. “Content is being pitched not at audiences of billions but separately at billions of individuals. The soon-to-arrive 5G networks will create further use cases, enhance user experiences and create disruptions leading to newer business opportunities. Long-term players in the Entertainment & Media space need to gear up to take advantage of such opportunities,” Basu said.

OTT (Over-The-Top) Video - India’s OTT video market will grow at a 21.8% CAGR from INR 4464Cr in 2018 to INR 11976Cr in 2023. Subscription video on demand will increase at a 23.3% CAGR from INR 3756Cr in 2018 to INR 10708Cr in 2023. The potential of India’s enormous scale will become reality during the forecast period with its OTT video market overtaking that of South Korea to become the eighth-biggest market in the world by 2023.

Internet Advertising - Total Internet advertising revenue for India in 2018 was INR 8150Cr, a 40.2% year-on-year increase from 2017. The Cricket World Cup and elections in 2019 are expected to boost advertising spends. Internet advertising is predicted to continue to grow rapidly in 2019 and beyond, and is forecast to be worth INR 18445Cr in 2023.

Online Gaming - India’s online gaming revenue is small at present but has strong potential with a calendar of well-supported events and leagues emerging. While outside sponsorship remains lower than global markets, this will see India’s e-sports sector increase at a 36.8% CAGR to the end of the forecast period. The main challenge for the segment has been poor online infrastructure, which has historically restricted growth. However, with improvements in infrastructure, this is expected to improve significantly in the near future.

Music & Podcasts - India’s music, radio and podcasts market was worth INR 5753Cr in 2018, up from INR 3890Cr in 2014. With streaming services finally germinating, total music revenue is forecast to hit INR 10858Cr in 2023, rising at a 13.5% CAGR.. At that pace, India would be the fastest-growing major economy on the planet. And with a population surging past 140Cr, it is forecast to surpass that of China in 2022. Podcast listening has increased markedly in India in the past few years. Monthly listeners (defined as people who listened to at least one podcast in the last month) totalled 4Cr at the end of 2018, up a sharp 57.6% from 2.54Cr in the previous year. This made India the world’s third-largest podcast-listening market (after China and the US), although it ranks much lower on a per capita basis. Growth is set to continue over the forecast period with listener numbers set to increase at a 34.5% CAGR to 17.61Cr by 2023.

PwC report says four priorities shaping companies’ strategies. As E&M companies reinvent their organisations and offerings for an increasingly personalised world, four priorities are coming to the fore:

  • One size does not fit all: As companies approach both markets of individuals and individual geographic markets, they are finding that it makes sense to present different options: all-you-can-eat offerings with unlimited usage in some areas, tiers of payments for different services in less developed markets, and competing on affordability. Meanwhile, across all markets — mature and developing — PwC’s research finds stark differences in terms of segment growth.
  • The number of consumer touch points is expanding: As media and e-commerce experiences become more personal, gratification for consumers is becoming more instant and immediate. In response, content creators and distributors are devising new ways to appeal to consumers as individuals and marketers are figuring out how to meet consumers at the point of consumption and point them instantaneously towards purchase. Witness the rise of shoppable online advertising, often promoted by ‘influencers.’ Voice is also becoming a key form of interaction for both search and shopping, supported by the rise of smart speakers.
  • Technological innovation introduces a new era of personalised computing: Companies are leveraging AI’s ability to understand people’s individual tastes and consumption habits to offer up the content individual users find most compelling. The combination of AI with 5G will be especially powerful, as it will fuel the rapid growth of segments such as video games and VR. The Outlook forecasts show video games’ compelling combination of growth and scale, while VR will be the fastest-growing segment overall.
  • Trust and regulation remain pivotal, as personal data hygiene becomes key: With consumers moving to the centre of their own world of media experiences, their personal data — from the music they stream and the news they read to the products they buy — is taking a central role. In the emerging world, maintaining personal data hygiene is becoming key to the overall health of the E&M ecosystem. For companies, this goes beyond regulatory compliance, which is merely table stakes, and extends to building trust by behaving transparently and responsibly with customers’ data, ensuring the accuracy of news, and being sensitive to concerns around issues such as digital addiction.

Get personal, or get left out of conversations with consumers - Ennèl van Eeden, Global Entertainment and Media Leader and Partner, PwC Netherlands, comments, ““The personalisation wave — fuelled by evolving customer behaviour — is set to be amplified by the forces of technology, scale, and aggressive investing and competition. “The implications for organisations are profound. As the borders separating former media silos erode, companies need to think more broadly about the areas and segments in which they operate. At the same time, all E&M players must take the need to ‘know your customer’ more seriously, and marketers need to allocate their time and attention to new types of content and platforms — influencers, live events, ads inside apps and more. Finally, companies must focus intently on their core capabilities and geographical markets, while continually scanning the horizon for new developments and regulations, and being agile in responding to technological developments such as 5G. “Put simply: it’s time to get personal with consumers — or be left out of the conversation.”

Indian Ad spends will reach Rs. 696.9 billion this year: DAN's Advertising Spend 2019 Forecast

The Forecast predicts that Cricket World Cup and Lok Sabha Elections are set to increase ad spends in India to 11.4 per cent in 2019. Dentsu Aegis Network's latest advertising spend forecast, based on data from 59 markets, predicts global growth will reach +3.6 per cent in 2019, following growth of 4.3 per cent in 2018, taking total investment to US $609.9 billion. In Asia Pacific, there is a predicted +4.0 per cent growth in 2019, following +5.3 per cent in 2018, taking total investment to US$216 billion. Geographically, Asia Pacific is the leading contributor to the global increase of US $20.9billion in 2019 compared to the previous year, contributing 39 per cent of the global increase, closely followed by North America at 34 per cent. Comparatively, Western Europe is forecast to contribute 14 per cent to new ad dollars with Latin America at 11 per cent and Central and Eastern Europe at 3 per cent.

In Asia Pacific, forecasts have been revised downwards (-0.5 per cent) from January following market softness at the beginning of the year particularly for TV, the lack of major events scheduled was also a contributory factor. China continues to be the leading contributor to Asia Pacific and global ad spend and will continue to grow in 2019 by +5.4 per cent to reach RMB 671 billion, a surprisingly healthy and stable growth rate, which remains on track despite the headwinds from trade tensions with the U.S.The global forecast reflects softening growth across 9 of the top 13 advertising markets worldwide, with India and Brazil bucking the trend with accelerating growth in 2019.

Speaking on the report, Kartik Iyer, President, Amplifi India said, "India is at the cusp of a major change. We are as of today seeing significant churn in the media consumption habits which is therefore driving change in ad spends. With the expansion on online video via mobile devices, the role of TV is changing and entertainment at one's own pace is becoming the norm. This is driving media owners to relook at their product and distribution strategies."

Some markets saw downward revisions from January 2019 forecasts including Italy and Russia with both markets seeing GDP slow alongside ad spend. Takaki Hibino, Executive Chairman, Dentsu Aegis Network Asia Pacific said "Asia Pacific has long been the melting pot of digital and technology developments. Though we have been facing a tougher economic environment, our ad spend forecast has shown that digital connectivity in APAC remains at its peak and consumer adoption rates have leapfrogged."

Key Market Trends

  • India: forecast double-digit 2019 growth of 11.4 per cent to reach INR 696.9 billion (up from the 10.6 per cent forecast in January and 10.8 per cent growth in 2018) with the Cricket World Cup putting growth on the front foot. Lok Sabha Elections are also set to increase spend in 2019. Digital media spend is forecast to grow by 32.7 per cent in 2019 to account for INR 144.1 billion, making up 21per cent share of total spend. Infrastructure has propelled the growth in digital consumption. TV continues to be the leading media in 2019 and will contribute 39per cent share of total spend. Despite digital growth, TV continues to be dominant as it enjoys unmatched share of audiences. With 40 per cent allocation of advertising spends, TV is forecast to expand in 2019 by 9.5 per cent to reach INR 271.4 billion.
  • China: the ad market continues to be a leading contributor to global ad spend and will continue to grow in 2019 by +5.4 per cent to reach RMB 671 billion but at a lower growth rate than the +7.0 per cent growth forecast in the January 2019 report. Growth for the market in 2019 has been revised downwards due to higher than expected decline in TV spend at the start of the year. Digital is still the biggest driver of growth in total ad spend in China with the biggest share (63.6 percent in 2019) and growth rate. E-commerce is growing consistently and strongly, taking the biggest share within Digital. The decline of TV advertising (-6.8 percent in 2019) has affected the total market trend. Within TV, ad investments in CCTV and provincial satellite TV are still on an increasing trend, while ad investments in provincial and local TV channels have declined significantly.
  • Australia: 2019 is expected to grow by 1.9 per cent to AUD $16.6 billion, which is a modest increase in overall spend from 2018. Majority of the growth is expected to come from digital and video channels. Digital continues to drive advertising revenue growth and is expected to increase by 6.8 per cent in 2019 representing roughly half of total media spend (54 per cent). Online video is a key driver for digital spending and is expected to increase by 28.4 per cent in 2019. Video is the golden child of digital with strong momentum making up a large proportion of general display. This positive trend is backed by publishers as brands continue to seek premium environments in which to showcase their offerings.

Global media trends - Digital continues to power ad spend growth and is forecast to grow 11.5per cent in 2019 to reach US $249.7 billion and 41.8 per cent of global share. Growth is steady into 2020 putting digital's share of ad spend at nearly 45 per cent by the end of the year. Mobile is the fastest growing platform within digital and is forecast to grow 21.4 per cent in 2019. Powering this growth is the increasing consumption of video on mobile - from Instagram Stories, TikTok and Snapchat to YouTube and VOD - with online video in general set to grow 20.5 per cent in 2019. TV ad-spend is forecast to shrink slightly in 2019 (-0.1 per cent) with a return to modest growth in 2020 of 0.6 per cent. Into 2020 growth will be driven by more dynamic TV opportunities and innovation as the penetration of smart TVs continues. The decline of traditional print has accelerated from our January 2019 forecasts (Newspapers -7.7 per cent and Magazines -7.4 per cent) as digital continues to dominate. OOH sees continued growth and an upwards revision from January to 4.3 per cent in 2019 to reach 6.3 per cent share. Growth is driven by innovations in Digital OOH.

Digital will contribute 29% of total Ad market by 2021

Internet penetration and adoption of digital media in India is growing at an unprecedented rate, which is creating huge opportunities to tap into the unchartered arena of digital space in newer ways. The ever-evolving digital industry and the advancement of technology opens various opportunities to interact with the audiences. Marketers can now choose innovative ways to reach out to their target audience and cater to the demand to create unforgettable experiences for them. As of 2018, the Indian advertising market stands at Rs. 61,878 crore ($8.76 billion) and is estimated to grow with a CAGR of 10.62per cent till 2021 to reach a market size of Rs. 85,250 crore ($12.06 billion). The digital advertising market size is around Rs. 10,819 crore ($1.3 billion) and the estimated CAGR growth will be 31.96per cent and the market will expand to Rs. 24,920 crore ($3.52 billion).

Television and print take the largest share of media spends at 70per cent aggregated followed by digital media at 17per cent. Digital transformation is being adopted at a substantial scale, which in turn, is increasing the adoption of digital media at a rapid pace. Currently, BFSI is the biggest spender on digital media with a contribution of 38per cent of all their marketing budgets. This is followed by consumer durables (36per cent), e-commerce (34per cent) and telecom (31per cent). FMCG spends heavily on the television (63per cent) and the retail sector spends largely on print (54per cent) medium of advertising.

The advertising expenditure on the digital advertising formats is led by social media (29per cent) followed by search (25per cent), display (21per cent) and video (20per cent). The BFSI vertical spends the largest share of its digital media budget on search (38per cent), while FMCG spends the largest share of its digital media budget on video (33per cent). Currently, 18 per cent of all digital media is bought programmatically and has grown from 15per cent last year. The major reason for the growth are technological advancements, improvements in data science & analytics, implementation of algorithm to automate various procedures, better ad fraud detection and improved data policies & regulations. The rapid increase in the penetration of mobile devices and internet has led to 47per cent of digital media spends on mobile devices and is expected to grow at CAGR of 49per cent to reach spends share of 67per cent by 2021.

Machine Learning (ML) and artificial intelligence (AI) will see heavy adoption and implementation in various media in the near future. The main drivers of the growth of digital media will be voice, vernacular and video. Apart from this, some of the other drivers of digital media growth will be engaging mobile experiences based on augmented reality (AR) and virtual reality (VR). In the near future, data-driven decision-making and business strategies will be more transformative and will entail building and merging of different types of business models and its implementation.

Commenting on the report, Ashish Bhasin, chairman and CEO - South Asia, Dentsu Aegis Network says, "Today, you no longer have to sell 'digital' to a client. This is the only medium which gives you a very measurable ROI, and almost an immediate impact. We have about 500 million people on the internet today and in the next three to four years, another 300-400 million people will join in. Concurrently, the next phase of internet users will speak regional languages and as a result, you will probably see a lot more advertising in regional languages on digital in the years to come. Dentsu Aegis Network understands this scope. Consequently, we are over-weight on digital. Of our 3500 people, more than 1600 are in our digital agencies. Nearly 48 per cent of our revenues comes from digital at a time when the market average in India is still 15-17per cent."

India MICE to flourish as over 2 million outbound tourists will be generated by 2020

India is estimated to generate over 2 million outbound luxury and MICE tourists annually by 2020, reinforcing the country's influence as a key source market for MICE and luxury travel, according to a new report by the organisers. According to figures published ahead of the 7th Annual MICE India and Luxury Travel Congress (MILT), the tourism market is expected to reach USD 9 billion by 2025. India's outbound MICE tourism market is expected to reach US$ 9 Billion by 2025, and in 2020 India is expected to generate more than 2 Million outbound MICE tourists.

Emphasizing on the growth trends of the MICE industry, Stephanie Tanpure, VP Sales, Sands Resorts Macao said, "We are projecting a very buoyant 2019 as far as meetings and events. I think the Global meeting and events industry should also expect some great results next year. We are not only seeing more and more events, but the average size of these events are growing." Commenting on how Indian corporates continue to spend big on corporate travel and the immense potential of exploring great opportunities in Geneva, Jonathan Willi, Corporate Sales Manager, Geneva Convention Bureau said: “India is one of the fastest growing outbound tourism markets in the world and the MILT Congress is an ideal platform to provide great networking opportunities within the industry experts.”

Touted as India's premier business platform, the 7th Annual MICE India & Luxury Travel (MILT) Congress will gather global suppliers who are looking to capitalise on India's booming outbound travel and tourism sector. "Last year alone more than 30,000 tourists from India visited Kazakhstan, which is double of what we witnessed in 2017. As the world is getting closer to each other, modern aviation is making the world a smaller place. Kazakhstanis growing economically, owing to the rising number of MICE and Luxury travels,” said Assem Kozbagarova, Director, Skyway Travel.

Short-haul destinations turn hot this summer season for India Outbound

Short-haul, visa-on-arrival destinations gained tremendous traction this summer as airfares and holiday packages to the US and Europe stay expensive due to the Jet Airways crisis and closure of Pakistani airspace. Travel to destinations like Thailand, Malaysia, Mauritius, Cambodia and the Maldives picked up with the airlines of some of these countries also enticing travellers with attractive offers, online travel agencies and tour operators said.

“Summer travel has been impacted over the past few months because of issues ranging from capacity constraint due to the grounding of Jet Airways to the closure of airspace over Pakistan that has led to an increase in airfares. We have noticed travellers favouring short-haul destinations, especially those that offer visa-free entry or visa-on-arrival to Indians, like Bhutan, the Maldives, Bali, Thailand and Macau,” said Vipul Prakash, chief operating officer at MakeMyTrip. East-bound travel to these locations has grown by over 18% from last year, as airfares for Europe and the US have risen by 20-25%, Prakash said. “This has obviously shown some trickledown effect on long-haul destination holiday packages as about 40-50% price of the package is governed by the airfare cost,” he added.

Pakistan extended the closure of its airspace to overflying aircraft till 5.30 am on June 15. The restriction, imposed since February 27, was expected to be lifted by end of June 2019. An Air India official said flights to the US had registered a 15% decline in passenger carriage over last year, in part due to the fare increase following the Jet Airways crisis and the airspace closure by Pakistan. Fares have also increased in the range of 20% to the Gulf and around 22% to Europe, the official added.

“Along with the issues of airline grounding and airspace closure, the shift towards the East has also got a push with airlines like AirAsia offering direct international connectivity from various small towns like Bhubaneswar and Vizag,” said Suresh Nair, head of AirAsia Berhad in India. “On top of it, a push from the tourism boards of countries like Malaysia, Indonesia and Thailand, and free visa on arrival to Thailand and Indonesia, have contributed towards people shifting towards East of India.” Debt-ridden Jet Airways, which had been cutting down on services since the end of last year, announced in April the grounding of its remaining overseas flights to Amsterdam, Paris and London. This has unsettled the plans of holiday travellers who had booked months in advance.

“A four-five-day holiday from New Delhi to Thailand works out to around Rs 29,000-31,000 per person with airfare, making it even cheaper than holidaying in Kerala from New Delhi or the northern points. What has fuelled this rush is the large number of low-cost carriers operating on the India-SE Asia route,” said Karan Anand, head of relationships at Cox & Kings. Thai Smile, Nok Scoot, Air Asia, Go Air, Bangkok Airways and Malindo Air have come up with attractive airfares from cities like Jaipur, Delhi, Kolkata, Hyderabad and Chennai to cash in on this demand, Anand said. Full-service carriers such as Malaysia Airlines are also offering competitive airfares to match the prices offered by the low-cost airlines. A senior executive from a Southeast Asian carrier said the airline was operating flights with full load. Neelu Singh, CEO at Ezeego1, said fares for Southeast Asian countries had remained fairly reasonable this year.

The Biggest 2019-2020 Wedding Trends

More Colours & Shades - A few years ago, the trend was to choose one or two colours for your wedding theme. In 2019 and 2020, the fashion is for variations and combinations of several different colours. The bride and groom will then choose a global atmosphere, even if it is not a very specific theme : shades of different colours, suspended lavender, white candles, but also notes of bright and chic colours, such as shades of pink, red, and even orange. Mustard yellow, ochre, cumin and saffron are also very popular this year, mixed with intense or dark greens such as sage green. All these colours will be sublimated by touches of gold, but also silver, very fashionable this year.

Innovative Wedding Dresses - A major new trend this year is the wedding dresses with pockets. They allow you to combine beauty with utility, since the bride can put some personal belongings such as a mobile phone or lipstick in there for a discreet little adjustment. As for the shape, the fashion suggests as short as possible, with refined and simple designs. In terms of colour, the trend tends for ‘Scandinavian Whites’ i.e. almost white - dusty blue, peach, blush and powder pink, sage green or grey tones. We shall also see trousers, still very refined and keeping the top subtle, made of lace and delicacy.

Bright and Flowery Decorations - The 2019/2020 season marks the trend towards flowers with suspended floral arrangements that decorate both gardens and interiors. We imagine giant hanging wreaths of flowers, standing on your tables. Flowers will be the key elements of the reception tables, for a chic or bohemian rustic style, but also for a more classic and refined wedding. The trend is natural, with flowers and wood. For the bride’s flowers, the fashion will be to the flower hoop, made of soft flowers, foliage and ribbon. It can be selected in gold or copper.

Culinary innovations - The trend remains in workshop activities, such as cutting ham, foie gras, fish grilling on plancha or mini skewers and burgers. The sweet workshops will be in high demand : waffles or pancakes workshops, ice stands, popcorn bar or juice and smoothies bar. The foodtruck is still relevant, especially for the day after the wedding. Opt for caterers who offer creative cuisines such as wasabi popcorn, cheese bars, chocolate bars, scallops in curry among others.

Wedding invitations - Luxurious wedding invitations, vintage wedding invitations, lace wedding invitations, bohemian wedding invitations or chic rural wedding invitations, beautiful new wedding invitations are waiting for you again this year. Creative papers always refined and elegant, one wants to touch this delicate and refined stationery. Here again the colours are in vogue, with peach, pink gold, powder pink, and pastel colours. There are also flowers, floral decorations, pink flamingos, pompoms and lace that will dominate in 2019 & 2020!

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