‘Netflix and chill’ did you say?
While the phrase ‘Netflix n’ Chill’ has slang connotations in Gen-Z lingo, there is absolutely nothing ‘chill’ about India’s Over The Top streaming market which is growing at a serious speed, and even more robustly since the outbreak of the pandemic!
A recent PricewaterhouseCoopers (PwC) report, ‘Perspectives from the 2020 Entertainment & Media outlook’, reveals in-depth data about the OTT space in general and some interesting facts to note about the India market.
The report states...
‘This past year was in many ways an extraordinary one—for the global economy, and for the global entertainment and media (E&M) ecosystem. As we look ahead to 2021, the outlook for E&M, although challenging, remains essentially positive.
Consumers have incorporated many of the industry’s products and services into their daily routines, providing powerful ballast even in turbulent seas. COVID-19 has had the effect of accelerating digitisation and changing habits. The underlying growth thesis for many core E&M industries remains intact.
This remains, in many ways, a golden age for consumers and fans of E&M. However, the business and commercial opportunity isn’t equally distributed. And therein lies the challenge. Outsized opportunities are available in the segments that are growing more rapidly, but prospects are shrinking in segments that are lagging.
When timetables are accelerated, companies have less time to get it right. In many sectors, vital tipping points have already been reached. E&M companies have to meet consumers where they are—and in 2020 that means predominantly at home and predominantly online. Companies simultaneously have to prepare to meet them where they will be four years from now.
What will be required in 2024 to build and maintain direct-to-consumer relationships, to have enough differentiation or scale to compete, and to invest in the right technologies while building trust?
Increasingly, companies will have to focus on mastering the intricacies of consumer experience. Providers have to continually figure out ways to delight consumers so they are willing to pay for the delivery of content and services, and must create differentiated experiences if they are to increase subscription charges over time.’
In many ways, the post-COVID-19 world is already here for E&M. The future has been pulled forward. It’s time to embrace it.
“Consumer habits can take a lifetime to learn—but just a lockdown to lose,” says PwC’s Global Entertainment & Media Outlook 2020-2024. The Indian E&M industry’s long-term outlook remains robust as it is expected to grow at 10.1% CAGR to reach 55 billion USD by 2024. Sectors like OTT, internet advertising, video/games/e-sports, and music and podcasts are expected to spearhead growth in the industry.
Here’s are the some crucial insights from the report:
Pulling the future forward: The entertainment and media industry reconfigures amid recovery 4
• Consumer habits can take a lifetime to learn—but just a lockdown to lose.
In only a few short months, COVID-19 accelerated ongoing changes in consumers’ behaviour, pulling forward a series of digital disruptions that would have occurred in future years
• New opportunities for new business models present themselves to meet consumers who are predominantly at home and online – businesses are creating new arrangements and combinations aimed at opening up new revenue opportunities
• Consumer spending to grow faster than advertising – E&M companies are increasingly in the business of delivering experiences and content directly to consumers, not delivering audiences and eyeballs to advertisers
• Reconfiguration is underway as consumers and businesses adapt. Although there will still be challenges for E&M companies as we move beyond the pandemic, the digital migration that has been pulled forward will also generate opportunities in most segments
Shifting patterns of consumer behaviour since COVID-19
The pandemic has propelled consumers even faster towards digital behaviours in many areas of their lives
The pandemic has led to E&M companies adopting new ways to drive growth and match consumer preferences
. India leads as the fastest-growing consumer market when looking at pure consumer E&M revenue (8.8% CAGR through 2019-2024).
. Expect a K-shaped bifurcated recovery, in which some sectors rise while others fall.
. Top 4 segments in terms of % CAGR growth (2019-24)
3.Video games and esports
4.Music, radio and podcasts
. India is the fastest-growing OTT market at 28.6 % CAGR; to overtake South Korea, Germany and Australia and become the sixth-largest market in 2024.
. India is now the sixth-largest Internet ad market in the Asia Pacific, having surpassed Taiwan in 2019.
.India’s billion-dollar gaming market to reach US$3.2bn in 2024, increasing at an 18.8% CAGR
With 57.6mn monthly listeners*, India is the third largest podcast listening market in the world after China and the US
Rajib Basu, Partner & Leader – Entertainment & Media, PwC India said, "We find ourselves in extraordinary times, and the pandemic has accelerated ongoing shifts in consumers’ behaviour, pulling forward digital disruption and reaching industry tipping points that wouldn’t otherwise have been reached in the next few years. Our research shows that India will be the fastest-growing entertainment and media market globally in terms of pure consumer revenue.”
Industry Global Mega trends
In 2019, data consumed by smartphones overtook fixed broadband ; to accelerate as 5G becomes more accessible
Asia Pacific overtakes North America as the leader in smart speaker ownership in 2019
Digital advertising revenue surpassed traditional advertising in 2019
COVID-19 has accelerated OTT platform adoption. Global SVOD revenue will overtake box office spend in 2020.
Globally, Digital consumer magazine advertising will overtake print magazine by 2023.
Mobile display will overtake wired Internet advertising in 2022. Led by mobile video consumption and social media.
Games category is set to become the third-largest consumer of data by 2024
Historical data collection
All the forecasts have been built by starting with the collection of historical data from a variety of sources.
A baseline of accurate and comprehensive historic data is collected in the first instance from publicly available information, including from trade associations and government agencies. When this data is used directly, these sources are cited accordingly.
In addition to this, interviews with relevant associations, regulators and leading players have been conducted to gather insights and estimates not available in the public domain. When this information is collected, it is used as part of the calculations and the sources are proprietary.
All forecasts are prepared as part of a collaborative, integrated process involving both quantitative and qualitative analysis. The forecasts are the result of a rigorous process of scoping, market mapping, data collection, statistical modelling and validation.
Do you want access to consumer and advertising spending data at the click of a button? The Global Entertainment & Media Outlook is a comprehensive source of global analyses and five-year forecasts of consumer and advertising spending for 14 segments across 53 territories: • Books • Business-to-business • Cinema • Data consumption • Internet access • Internet advertising • Music, radio and podcasts • Newspapers and consumer magazines • OTT video • Out-of-home advertising • Traditional TV and home video • TV advertising • Video games and esports • Virtual reality To access the full segment definitions for the Outlook, please visit www.pwc.com/outlook