India’s digital advertising surge: Navigating growth in the changing media landscape

Seizing growth opportunities

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India’s entertainment and media (E&M) sector is rapidly expanding, driven by its large millennial and Gen Z population of over 91 crore. The key enablers include 80 crore broadband subscriptions, 55 crore smartphone users, 78 crore internet users, rising per capita income, and the world’s cheapest data costs. Despite contributing less than 2% to the global E&M sector, India is the fastest-growing territory, supported by its expanding economy and technological infrastructure. Valued at INR 245k crore in 2023, the sector is projected to reach IN 345k crore by 2028, with a compound annual growth rate (CAGR) of 8.3%. Advertisement and connectivity is driving the growth in the sector. Mobile-first dominance in India is very significant, with Indians spending 82% of their time on E&M apps. Digital media, over the top (OTT), online gaming, animation and visual effects (VFX), live events and music are high-growth areas, with average CAGRs exceeding 15%. The Indian startup ecosystem and favourable government policies around foreign direct investment (FDI) further support domestic E&M growth.

Total entertainment and media (E&M) revenue saw another strong year in 2023, with global year-on-year growth of 5.0%

Global E&M revenue is expected to witness a more muted growth at 4.6% CAGR over the next five years.
Despite the headwinds from economic slowdown, a cost-of-living crisis unfolding in several countries and geopolitical uncertainties, 2023 was still a strong year for the global E&M sector. Revenues witnessed year-on-year growth of 5.5% between 2022 and 2023, and are predicted to increase from INR 13,891k crore in 2023 to INR 17,359k crore in 2028.
Both the consumer and connectivity sectors saw an uptick in growth in 2023 compared to 2022, but a slowdown in advertising spend led to the E&M growth rate remaining stable.

Global E&M revenue (INR thousand crore) vs annual growth (%), 2019–2028

However, advertising remains the fastest-rising sub-sector of the E&M market.
Advertising will extend its lead over the consumer category over the forecast period, driven predominantly by rapid growth in the internet advertising segment, which added INR 432k crore to its global revenue base in 2023 and is set to rise at a 9.5% compound annual growth rate (CAGR) until 2028.

India’s Entertainment & Media sector is on the cusp of a major transformation. According to our Global Entertainment & Media Outlook 2024-2028, key growth drivers such as digital advertising, OTT platforms, online gaming, and Generative AI are shaping the future of the industry. These rapidly expanding segments are positioning India as a global leader in innovation and growth. Businesses that adapt and innovate in these areas are poised to seize unparalleled opportunities in this dynamic landscape.

Manpreet Singh Ahuja, Chief Digital Officer and TMT Leader at PwC India

The US leads the global E&M market by revenue, with China in the 2nd place and India at the 8th

The US is the largest E&M market, accounting for a third of the global revenue in 2023 at INR 5,397k crore (when connectivity revenue is excluded). The CAGR for the period is at 4.3%, below the global average of 4.6%.
China is the second largest market to grow at a 7.1% CAGR, with the bulk of its growth coming from internet advertising revenue. By the end of 2024, China will become the largest box office market again, overtaking the US.
India will see impressive growth at an 8.3% CAGR over the next five years, becoming an INR 365k crore market in 2028. The country is one of the fastest-growing traditional TV markets and will lead the world in growth in the over the top (OTT) segment until 2028.

E&M sector in India to grow at a CAGR of 8.3%* from INR 245k crore to 365k crore

The Indian E&M sector has continued its strong growth trajectory. Valued at INR 245k crore in 2023, it is expected to reach INR 365k crore by 2028, growing at a CAGR of 8.3%.
Most of the growth in the E&M sector is attributed to India’s mobile-first dominance. Indians are spending 82% of their time on mobile phone apps related to E&M.
Digital media, online gaming, animation and visual effects (VFX), live events and music concerts (sunrise segments) represent a huge growth opportunity in India’s E&M sector, driven by the technological infrastructure, demography and government policies. The average CAGR of sunrise segments is over 15%.

Total E&M revenue (excluding connectivity) in 2028 (INR thousand crore) and 2023–2028 CAGR (%)

India has the world’s largest millennial and Gen Z population (over 910 million), which contributes significantly to the demand in the media, technology and other emerging sectors.
India’s 80 crore broadband subscribers, 55 crore smartphone users, 78 crore internet users, rising per capita income and world’s cheapest data cost are the key enablers of growth in the E&M sector.
India contributes less than 2% to the global E&M sector and is the fastest growing territory in the world, enabled by its growing economy, population and infrastructure development.
The Indian startup ecosystem and government policies around foreign direct investment (FDI) are boosting the growth of domestic E&M players.

India’s advertising revenues, boasting the second highest CAGR, is set to outpace those of Australia, South Korea, Indonesia, and Brazil by 2028

Growth rates in India are higher than the global numbers by 1.4–4.1x, 1.4x in advertising, 4.1x in connectivity and 3.4x in consumer

Advertising will grow at a 9.4% CAGR from INR 101k crore in 2023 to INR 158k in 2028.
The share of advertising revenues will be consistent at ~20% during the period, while share of connectivity is estimated to increase from 52% to 56%, lowering the contribution of consumer revenues.
Connectivity revenues include fixed voice, fixed broadband access and value-added services, as well as mobile service revenue. Connectivity revenue totaled INR 263k crore in 2023, or 52% of the total Indian E&M revenue. It will reach INR 459k in 2028.

Total revenues: Internet advertising to grow at a 15.6% CAGR from INR 41k crore in 2023 to INR 85k crore in 2028

TV will remain the highest contributor to E&M revenues during the period; however, its share will drop from 43% to 36%.
Internet advertising is the second largest component with a share of 16%, which will increase to 21% by 2028.
Newspapers will continue to have a muted growth at 3.4%. Revenues are expected to increase from INR 38k crore in 2023 to INR 45k crore in 2028.
OTT is the third fastest growing segment with a CAGR of 14.9%.

Advertising revenue: Overall ad expenditure to increase from INR 101k crore in 2023 to INR 158k crore at a CAGR of 9.4%

Internet advertising to grow at a 15.6% CAGR from INR 41k crore in 2023 to INR 85k crore in 2028
Newspapers will continue to have a muted growth at 3.4%. Revenues are expected to increase from INR 38k crore in 2023 to INR 45k crore in 2028.
OTT is the third fastest growing segment with a CAGR of 14.9%.
Advertising expenditure from video games and e-sports is set to increase INR 4.4k crore in 2023 to INR 18k crore in 2028.
India’s TV market is projected to grow at a rate of 4.2%, positioning it as the 4th largest TV market in the world by 2028

Fastest and slowest growing E&M metrics: most of the growing segments are under the umbrella of internet advertising

India, fastest rising and declining E&M metrics by 2023–2028 CAGR (%)

While global TV advertising revenues are expected to decline at a CAGR of -1.6%, India’s TV market is projected to grow at a rate of 4.2%, positioning it as the 4th largest TV market in the world by 2028

Traditional TV Advertising revenues 2023 to 2028 in 2028 (INR thousand crore) & CAGR (%)

Despite a global decline in print advertising revenues at a CAGR of -2.6%, India’s market is expected to grow at a rate of 3%, making it the 3rd largest print market in the world by 2028

Newspaper & Magazines advertising revenues 2023 to 2028 in 2028 (INR thousand crore) & CAGR (%)

From clicks to conversions, India’s internet ad ascent

India’s internet advertising market is the fastest growing in the Asia Pacific region and second-fastest globally. It is expected to grow at a CAGR of 15.6% from 2023 to 2028, rising from INR 41,310 crore in 2023 to INR 85,231 crore in 2028.
Year-on-year growth, which was 26.0% in 2023, will remain in double digits throughout the forecast period, and is expected to become 12.2% by 2028. With the advertising exchange expanding rapidly since the pandemic, internet advertising has overtaken TV advertising in terms of size. So, although the growth percentage may have decreased, the base has expanded significantly.
India has a huge potential addressable audience, making digital an attractive proposition for advertisers, and providing room for the Internet advertising market to grow as more people get online. With increasing consumer spending power, brands are keen on increasing awareness through advertising.
Social media: Social media is popular in India, and influencer marketing is a growing trend. 60% of Indians message a business account weekly; revenue from click-to-message ads doubled in 2023.
The Digital Personal Data Protection (DPDP) Act 2023 is being implemented in phases and will impact the digital ad market – particularly because first-party data and its processing is increasingly important for targeted advertising, with the forthcoming withdrawal of third-party cookies in 2024. The new law will penalise companies for data security breaches and require data deletion once its purpose is served. Businesses that proactively comply can build trust with stakeholders and also gain a competitive edge.

Internet advertising market in India – 2019–2028(e) (INR thousand crore)

+15.6% CAGR

Internet Advertising Revenue split by type, 2019–2028 (INR Cr in 000’s)

The proposed Digital India Act, replacing the Information Technology Act of 2000, aims to regulate the online advertising market to prevent dominance by a few big tech firms. By adhering to the DPDP Act, marketers can foster trust and transparency with consumers, leading to stronger relationships and more effective, personalised marketing campaigns. Restrictions on third-party data create opportunities for first-party data collection, resulting in more accurate data and better-targeted marketing. While the DPDP Act presents challenges, it also offers opportunities for innovation, trust-building and more effective marketing strategies. Brands that prioritise compliance will likely benefit from stronger customer relationships and a competitive edge.

The Indian TV sector is expanding rapidly amidst a global downturn. Subscription will continue to be the key monetisation strategy

In 2023, there were a total of around 905 private satellite TV channels in India and around 45% news channels.
India had more than 2.5 crore connected TVs in 2023. This emerging segment can open opportunities for the new custom products other than linear feeds.
Indians spent an average 226 minutes on TV per day in 2022. Sports (especially non-cricket) has witnessed growth in viewership on TV.

TV market in India – 2023–2028(e) (INR thousand crore)

Number of households with TVs in India – 2023–2028(e), crore

India will become the world’s fifth-largest traditional TV market by 2028, with revenue growing from INR 111k crore in 2023 to INR 145k core in 2028 at a 5.4% CAGR. This growth is significant compared to the global decline in traditional TV revenue, forecasted at a -0.7% CAGR.
TV advertising revenue:
- Multichannel advertising will account for 95% of the total, growing at a 4.3% CAGR to INR 36k crore by 2028.
- Terrestrial TV advertising will grow at a 2.2% CAGR to INR 1,783 crore by 2028.
will remain the highest contributor to domestic M&E (advertising and consumer) revenues during the forecast period – however, its share will drop from 43% to 36%. Moreover, traditional TV advertising will grow at a 4.2% CAGR between 2023 to 2028, while global revenues are set to drop by -1.6%. India is poised to become the fourth-largest TV advertising market by 2026
Among advertisers, there is a growing preference towards internet and connected TV formats. Internet advertising is gaining dominance owing to its unique offerings such as targeted advertising, high engagement, data-driven insights, cost efficiency and interactive capabilities.
This has also resulted in a decline in traditional TV and growth in connected TV/internet TV. This cord-cutting phenomenon is expected to accelerate further

The Indian OTT market is very competitive and expected to go though a major consolidation and alliances to focus on sustainable growth and diversified content.

At present, India’s competitive market has around 57 OTT platforms with 10.1 crore video OTT subscriptions in 2023, which is growing at a CAGR of 10.8% and will reach 16.9 crore in 2028
It is a large mobile-first market supported by cheap mobile data prices, which is the key growth driver for the OTT sector. Global streaming companies find the market attractive, with significant long-term potential as infrastructure improves.
The OTT market in India grew by 20.9% in 2023, reaching INR 17,496 crore. It is expected to double by 2028, growing at a CAGR of 14.9% and reaching a value of INR 35,062 crore. Subscription video-on-demand services (SVOD) will account for 65% of the market by 2028. Advertising video-on-demand (AVOD) is projected to grow at a 26.0% CAGR, reaching INR 11,097 crore by 2028.

OTT market in India – 2019–2028(e) (INR thousand crore)

+14.9%

With the pandemic-induced subscriber boom fizzling out, fiscal responsibility, consolidation and partnerships will define the forecast period as streamers seek sustainable profitability and diversified content offerings. Amid macro-economic uncertainties and inflationary pressures, consumers are reining in household budgets and re-evaluating the number of OTT subscriptions they need. Leading OTT platforms are reinventing business models and have rolled out ads in return for a lower subscription fee, while also looking at boosting revenue through a crackdown on password sharing. Advertising-funded models will continue to thrive on the back of lite and free streaming options.
Given the linguistic diversity in India and space for hyperlocal storytelling in regional languages, there has been a rise in regional players. 50% of the OTT content was in regional languages in 2022, with user preference for and consumption of regional content being higher.
More than 50% of the OTT content was in regional languages in 2023. However, at just INR 1,290 in 2023 – and set to grow at a minimal CAGR of only 1% till 2028 – India has one of the lowest annual revenue per subscription figures globally, prompting the need for streamers to explore partnerships for content and distribution or diversify their revenue streams.
The sector’s growth has been driven by major International players leveraging mobile plans and local partnerships. Telcos are leveraging their user base for OTT aggregation, challenging standalone OTT players’ direct-to-consumer strategies.

OTT market in India – 2019–2028(e) (INR thousand crore)

OTT revenues split India 2023

A visible shift from physical to digital in the print sector supported by digital ad revenue.

Newspaper market: India has the second-fastest-growing newspaper market in the world after Pakistan. It is one of the markets that continues to grow contrary to the global decline in this segment.

It is expected to rise from INR 28,254 crore in 2023 to INR 33,053 crore by 2028, with a 3.2% CAGR, with modest growth in print circulation (1.7% CAGR) and print advertising (2.5% CAGR). Fastest growth will be seen in digital circulation revenue (12.4% CAGR) and digital advertising revenue (8.1% CAGR). Advertising made up 67.9% of total newspaper revenue in 2023.

Book market in India – 2023–2028(e), INR thousand crore

90% of the revenues are generated from the physical product. Publishers are expecting to increase physical newspaper utility through hyper-local content and community initiatives.
Indian users prefer watching news over reading. Mobile news aggregators are the primary news sources and growing rapidly.
Publishers are investing in digital technology to broaden newspapers’ appeal and stay relevant in an increasingly connected world. The Times of India has worked with the GNI Subscriptions Academy (collaboration between Google News Initiative and FT Strategies) to redevelop its newsletter. Targeting the audience and including more paywalled content have resulted in an increase in both engagement and subscriptions.

Book market: India leads the Asia Pacific region with a rapid increase in consumer book market revenue.

The market is fragmented, competitive and lacks a formal distribution network, particularly affecting rural access.
A large, youthful working-age population and growing economy support market growth.
Events and book fairs are a very important sales channels for print media, with the International Kolkata Book Fair being a major event attracting millions of visitors.

India’s online gaming and e-sports set for explosive growth, supported by a large gamer base.

In the last three years, the Indian gaming sector has seen the rise of three gaming unicorns, six strategic exits and a successful IPO. Also, there are to 1,400 startups, including 500 gaming studios, operating in the online gaming segment
The Indian gaming market raised INR 23,000 crore from domestic/global investors in the last five years
In 2023, India had close to 45 crore gamers – the second-largest number in the world after China. An estimated 12 crore gamers are paid gamers. India’s video games market is dominated by social/casual gaming and RMG.
India is a mobile-first gaming market, and around 94% of gamers use mobile phones as their gaming platform, followed by PCs (9%) and consoles (4%).
The total online games and e-sports revenue in India was INR 16,480 crore in 2023. It is forecasted to reach INR 39,583 crore by 2028, growing at a 19.2% CAGR. Year-on-year growth in 2023 was 21.7%, down from the previous year’s rapid pace. This growth will continue to decelerate to 16.9% by 2028.
While RMG was not covered in this edition of GEMO, India’s RMG market is rapidly expanding, driven by increased smartphone ownership, affordable data connection costs and a strong digital payments infrastructure. The RMG segment in India is the world’s largest RMG market, with a revenue of approximately INR 16,000 crore in 2023. By 2028, this segment is predicted to grow by 10% to reach INR 26,500 crore. The share of the RMG sector in 2023 was about 50%. This number is expected to gradually reach 32% in 2028, with the growth of other components as discussed above.

Online gaming market in India – 2023–2028(e) (INR thousand crore)

E-sports market in India – 2023–2028(e), INR Crore

With more than 400 real money gaming (RMG) startups operating in the space, the sub-segment accounted for around 83% of the revenue share in FY23. However, with high tax regulation (28% on contribution), the RMG share is expected to come down.
The India gaming market is at a very nascent stage, contributing only 1% of the global gaming market size as against 24% for the US and 25% in China. This indicates a huge upside potential for India gaming market.
E-sports: India is the second-fastest-growing e-sports market in the world. Total e-sports revenue in 2023 was INR 67 crore, forecasted to reach 179 crore by 2028, growing at a 21.8% CAGR. India has around 100,000 e-sports teams and 600 thousand e-sports players.
- The Government’s formal recognition of e-sports as a sport in 2022 has fuelled its mainstream acceptance in India. Once relegated to niche gaming conventions, e-sports events are now drawing large crowds and garnering media attention comparable to traditional sporting events.
- Major tournaments such as the PUBG Mobile India Series have become annual spectacles, attracting thousands of participants and spectators from across the country.

In app games advertising revenue to grow at a CAGR of 34.4%, while causal gaming to grow at 14.5%

The total social and casual gaming revenue was INR 13,800 crore in 2023, and it is forecast to exceed to INR 36,600 crore in 2028, expanding at a rapid 21.6% CAGR.
The social and casual gaming sector’s actual growth will be propelled by in-app games advertising where revenue is expected to quadruple in the next five years, expanding at a formidable 34.4% CAGR.
The in-app games advertising revenue, which was INR 3,950 crore in 2023, will grow to INR 17,300 crore by 2028, by which point it will represent almost 50% of the sector.

Traditional gaming comprises a much smaller part of India’s video games market, with revenue amounting to just INR 2,183 crore in 2023. The sector also exhibits only minor growth and is forecast to reach INR 2,280 crore by 2028 at a 0.9% CAGR. This slow growth is in line with the global trends as sale of physical copies of console games witnesses a decline and players transition towards buying digital games, choosing free-to-play games that rely on microtransactions to generate revenue. However, cloud and subscription gaming revenue is also growing rapidly in India owing to increased adoption of cloud gaming. Total cloud and subscription gaming revenue was INR 193 crore in 2023 and is expected to reach INR 592 crore in 2028, expanding at a 25.1% CAGR.

India video games and esports revenue split by market share Revenue (INR thousand crore), 2023-28

India casual gaming revenue split (INR Cr 000’s), 2019-2028

From local beats to global hits, India’s music industry booms has seen a streaming surge. More global players are entering the Indian music market.

Music sector: India’s recorded music industry is experiencing rapid growth as smartphone users increasingly seek out content through legitimate licensed music apps.

The music industry is also witnessing a streaming surge. India’s recorded music industry is experiencing rapid growth as more global players enter the Indian music market and smartphone users increasingly seek out content through legitimate, licenced music apps.
Total music revenue is expected to grow from INR 2,416 crore in 2019 to INR 6,686 crore in 2023, reaching INR 10,899 crore by 2028, with a CAGR of 10.3%.
Streaming platforms have been a major driver, with India’s music streaming consumption ranking second globally, with over 1 lakh crore streams in 2023.

Podcast sector: There were 15.3 crore monthly podcast listeners in India in 2023.

India’s podcast users spend 1.5 hours daily listening to podcasts, with around 10% opting for paid-for content, often through micropayments. Around 13% of listeners had signed up to subscription-based services by end of 2023.
Paid-for models dominate revenue generation, with podcast ad revenue expected to rise from INR 285 crore in 2023 to INR 437 crore by 2028.

Radio sector: Given the size of its population, India’s radio market remains relatively underdeveloped compared with other countries, leaving it much room for expansion.

Advertising revenue for radio grew from INR 1,308 crore in 2019 to INR 1,868 crore in 2023, and is expected to reach INR 2,012 crore by 2028, with a CAGR of 2.1%.
All India Radio (AIR) remains dominant with 479 domestic stations covering over 99% of the population. There are 388 private FM stations, with leading networks including Fever FM, Radio Mirchi, BIG FM and Red FM.
AIR is the only official provider of radio news in the country, but a September 2023 report from the Telecom Regulatory Authority of India recommended that FM radio operators be allowed to broadcast news and current affairs programmed up to ten minutes each clock hour under the same code of conduct as applies to AIR.
There are currently 460 community radio stations in India, which include charitable trusts, agricultural research institutes, schools and universities.

Music sector in India – 2019–2028(e) (INR thousand crore)

+10.3%

Music subscribers in India – 2019–2028(e) (in crore)

+8.0%

Podcast ad revenue in India – 2019–2028(e) (INR crore)

+8.9%

Monthly podcast listeners in India – 2019–2028(e) (in crore)

+8.9%

Radio ads revenue in India – 2019-2028(e) (INR thousand crore)

+2.1%

India’s OOH advertising market poised for massive growth supported by large consumer class, digital shift and infrastructure boost.

India's OOH advertising market grew by 12.9% in 2023, reaching INR 4,140 crore, outpacing the Asia Pacific average growth of 10.2%. The market is expected to grow at a 7.6% CAGR, reaching INR 5,961 crore by 2028, compared to a 5.3% CAGR across the Asia Pacific region.
Digital out-of-home (DOOH) penetration is limited due to market fragmentation and high capital expenditure costs. DOOH advertising had a 23.8% share of the total OOH market revenue in 2023, expected to grow to 39.5% by 2028, with a 19.0% CAGR driven by programmatic buying and artificiall intelligence (AI) applications.
Infrastructure development, such as new highways and transit stations, is crucial for expanding OOH advertising potential. Infrastructure projects like the Delhi to Mumbai expressway are creating new advertising venues.

OOH market in India – 2019–2028(e) (INR thousand crore)

OOH market segment – 2023

From local legends to global hits, India’s box office triumphs!

India’s cinema market is expanding, with box office revenue reaching INR 12,419 crore in 2023 and expected to increase to INR 23,748 crore by 2028, growing at a 14.1% CAGR.
In 2023, the Ministry of Information and Broadcasting increased production incentives from 30% to 40%.
India is entering co-production treaties with countries like Australia, aiming to attract more international productions.
Star-driven Bollywood action movies will continue to drive box office throughout the forecast period. Average ticket price in India in 2023 was INR 128, significantly lower than the INR 889 average in the US.

Cinema market in India – 2019–2028(e) (INR thousand crore)

India has the biggest population in the world with over 140 crore people. But in 2023, there were only 5,907 cinema screens in India. India has a huge, young population – and traditionally cinema is a young person’s medium. As a result, there is still capacity for enormous growth.
Cinema remains a luxury for much of the population, with only 4% being regular moviegoers.
Despite low average ticket prices, economic growth is expected to increase the number of Indians who can afford to go to the cinema.
Movies are made in multiple languages, with regional industries like Kerala’s Malayalam-language film industry also thriving.

Unlocking India’s metaverse potential with digital transformation and standardisation

By 2035, India’s metaverse industry could be worth between INR 650k crore and INR 1,219K crore. Some of the high potential sectors are healthcare, education, tourism, retail, real estate, and gaming.
The full potential of the metaverse, like that of two-dimensional internet, will likely only be realised with significant work on cross-platform tools and standardisation.
As of 2024, many components of the metaverse already exist, and an immersive online life is experienced by millions of gamers every day. Games like Roblox offer immersive experiences with social features and creator tools, but are currently limited by platform independence and lack of standardization.
India's gaming landscape is primarily mobile-focused, influencing the intersection of the metaverse and gaming.
India is home to numerous companies specialising in Web3 technologies and immersive experiences. Businesses are offering a range of services from augmented reality (AR) and virtual reality (VR) to blockchain development, non-fungible token (NFT) design and metaverse development.

India’s trade shows are leading the B2B segment growth with global players entering the market

In 2023, total B2B revenue grew by 9.2% to reach INR 8,465 crore, led by the continued recovery of the trade shows vertical. It is expected to grow at a 5.6% CAGR, reaching INR 11,142 crore by 2028 with highest growth pace in the world.

Business information: The vast size of India’s consumer market ensures high demand for business information, and the largest global market research firms have recognised this.

The business information market in India was valued at INR 5,301 crore in 2023 after growing by 4.0% y-o-y and it is expected to grow at a 4.5% CAGR, reaching INR 6,601 crore by 2028.

B2B market in India 2019–2028(e), INR thousand crore

Market research firms are aligning themselves with a broader trend towards integrated data analysis, combining survey data, client data and social data to gain a comprehensive understanding of consumer behaviour and market trends.
Custom research and analytics is fuelling growth in the country’s market research sector.

Trade shows: Trade shows represented 34.3% of India’s B2B market in 2023. They are expected to grow at a 7.8% CAGR, from INR 2,902 crore in 2023 to INR 4,227 crore in 2028, outperforming all markets except Indonesia, Kenya and Nigeria.

Trade magazines: This is a small segment, holding 3.1% of the B2B market. It is expected to grow at a 3.5% CAGR, from INR 263 crore in 2023 to INR 313 crore by 2028. Print advertising is expected to decline because readers will remain committed to physical editions as well as buying subscriptions to digital formats.

Perspectives from the Global Entertainment & Media Outlook 2024–2028

Seizing growth opportunities in a dynamic ecosystem

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Key report findings

Consumers in South Africa, Kenya, and Nigeria reevaluated their discretionary spending on E&M products as a result of the sharp cost-of-living rises. Despite this, it is anticipated that all market sectors would have robust growth, with all markets outperforming Covid 2019 revenue levels.

Despite continued change and disruption, the industry reassessed its strategies, refocused on core operations and revised some key assumptions. Growth in South Africa’s E&M market stabilised in 2022, however this growth is still expected to outpace the global average. Nigeria is expected to experience the strongest growth in E&M revenue, with revenue expected to more than double from 2022 to 2027. Whilst newspapers, consumer magazines and books are forecast to continue to decline in South Africa and Nigeria, Kenya is forecast to achieve growth across all segments.

“International and domestic players alike are investing in local content and services to attract audiences and keep them engaged in an increasingly crowded landscape. The entertainment and media industry has always been a creative endeavour. In the coming years, armed with powerful technology, E&M leaders will have to be more creative about how they create, distribute and monetise products and services to achieve sustained growth.”

Alinah Motaung, PwC Africa Entertainment and Media Leader

Segment highlights

OTT platforms look to Africa as other markets slow down

There is significant room for growth within the African OTT video streaming market, with South Africa posting the highest OTT revenue on the continent. African streaming platforms have tailored themselves to African viewers with local content to compete with services that boast an established global footprint.

Growth in African OTT markets broadly outpaces the global average

Africa is home to rapidly expanding digital advertising markets

Digital has accounted for over half of advertising spend in South Africa since 2020, and by 2027, it is expected to take nearly two-thirds of ad spend. This broadly aligns with the global picture, where digital has led since 2019 and will account for 71.8% of ad spend in 2027.

Digital will account for nearly two-thirds of ad spend in South Africa in 2027

African gaming and esports to see future growth

South Africa leads the three markets covered in terms of video games and esports revenue, with strong growth being recorded in 2022. This was especially prominent within the esports category, with total esports revenue up almost a third year-on-year. In Nigeria, games will overtake communications to become the second-largest category in terms of data consumption by the end of 2023, driven by a thriving mobile gaming landscape.

Games will overtake communications to be the second-largest content category by end-2023

Live events and box-office continue their recovery

There has been a general rebound across the different categories of live events in South Africa, Nigeria and Kenya since the COVID-19 pandemic, with live music ticket sales performing strongly. Box office revenue has been recovering since 2021 but has yet to match pre-COVID-19 levels. South African cinema was the strongest performing of the three markets in 2022, with total revenue amounting to R862m.

South Africa is experiencing a strong rebound in box office revenue

Music streaming adoption is rising

The music streaming market has never been stronger across South Africa, Nigeria and Kenya, with strong growth being experienced in music streaming subscription revenue. In South Africa, music streaming subscription revenue is set to rise at a 10.5% CAGR over the next five years to reach R1.1b in 2027.

Music streaming subscription revenue set to surpass R1.0b from 2026

Download the latest edition here Africa Entertainment and Media Outlook 2023-2027

Five-year projections of consumer and advertiser spending data across entertainment and media segments for South Africa, Kenya and Nigeria.

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