At the annual FICCI FRAMES conference, the Federation of Indian Chambers of Commerce and Industry (FICCI) along with EY released a comprehensive report on the Indian Media and Entertainment (M&E) industry.
What are the key findings?
Indian M&E sector grew over 8 percent in 2023 to cross INR 2.3 trillion
The Indian M&E sector continued its growth trajectory; it grew by INR173 billion (8.1 percent) to reach INR2.32 trillion (US$27.9 billion).
While the sector was 21 percent above its pre-pandemic levels, television, print and radio still lagged their 2019 levels.
While television remained the largest segment, we expect digital media to overtake it in 2024
Expect the M&E sector to grow 10.2 percent to reach INR2.55 trillion by 2024, then grow at a CAGR of 10 percent to reach INR 3.08 trillion by 2026.
Growth of INR173 billion was driven by new media
Except for television, all M&E segments grew in 2023
The growth of INR173 billion was half of the INR 371 billion growth that took place in 2022, mainly due to headwinds in advertising during the first half of the year
New media (digital and online gaming) grew the most, providing INR 122 billion of the total growth, and consequently, increased its contribution to the M&E sector from 20 percent in 2019 to 38 percent in 2023.
The share of traditional media (television, print, filmed entertainment, live events, OOH, music, radio) stood at 57% of M&E sector revenues in 2023, down from 76% in 2019.
Experiential (outside the home and interactive) segments continued their strong growth in 2023, and consequently, online gaming, filmed entertainment, live events and OOH media segments grew at a combined 18%, contributing 48% of the total growth.
Segmental performance
Television: Television advertising fell 6.5 percent due to a slowdown in spending by gaming and D2C brands, which impacted revenues for premium properties. While linear viewership grew 2 percent over 2022, 19 to 20 million smart TVs connected to the internet each week, up from around 10 million in 2021.
Digital advertising: Digital advertising grew 15 percent to reach INR 576 billion, or 51 percent of total advertising revenues. Included in this is advertising by SME and long-tail advertisers of over INR200 billion and advertising earned by e-commerce platforms of INR86 billion.
Digital subscription: Digital subscription grew 9 percent to reach INR78 billion. This was a third of 2022’s 27 percent growth, as premium cricket properties were moved in front of paywalls. Paid video subscriptions reduced by two million in 2023 to 97 million, across 43 million households in India. Paid music subscriptions grew from 5 million to 8 million, generating INR3 billion while online news subscriptions generated INR2 billion.
Online gaming: The segment’s growth slowed to 22 percent in 2023 to reach INR220 billion. It overtook filmed entertainment to become the fourth largest segment. Impact of a higher GST levy was largely absorbed by larger players, impacting margins, but protecting growth.
Film: The segment grew 14 percent to reach INR197 billion. Over 1,796 films were released in 2023, and theatrical revenues reached an all-time high of INR120 billion.
Number of screens grew 4 percent and fewer films were released directly on digital platforms. 339 Indian films were released overseas
Print: Bucking the global trend, print continued to thrive in India. Advertising revenues grew 4 percent in 2023, with a notable growth in premium ad formats, as print remained a “go-to” medium for more affluent and nonmetro audiences. Subscription revenues grew 3 perecent on the back of rising cover prices. Digital revenues were insignificant for most print companies.
Radio: Radio segment revenues grew 10 percent in 2023 to INR23 billion on the back of more retail and local advertising, and alternate revenue streams. Ad volumes increased by 19 percent in 2023 as compared to the previous year, though ad rates remained below their 2019 levels.
Insights
Kevin Vaz, Chairman – FICCI Media and Entertainment Committee, kicked off proceedings at FICCI FRAMES 2024, spotlighting the exponential potential of the sector and the factors that propelled growth, despite economic headwinds.
Vaz said, “The Indian M&E sector stands out for its unique blend of tradition and innovation – where tech supported entertainment television channels, OTT platforms, AI newsreader led news channels, hardcopy broadsheets, marquee films and short form reels – all not only co-exist but are growing!”
He highlighted a remarkable era of content creation, with over 200,000 hours of content produced annually. Indian content has transcended international boundaries, captivating audiences in more than 160 countries and topping streaming charts on global platforms.
The integration of digital technologies in the Indian M&E industry is at a scale without parallel amongst the comity of nations. Driven by accessible and affordable internet, with Commercial 5G services rollout propelling the growth of India M&E, “we must recognise the virtuous cycle of investments in creativity that drive the expansion of affordable internet in India,” he said.
Vaz also stated that platforms like JioCinema have revolutionized sports viewership in India, offering accessible and affordable access to live matches like the IPL. “This goes to show the importance of internet accessibility in driving the growth of the M&E industry. Unlike other industries, M&E has caught the digital transformation wave early and stands ready to reap the benefits with supportive developments in the all-critical triad of infrastructure readiness, consumer market growth, and enabling public policies.”
He added, “The surge in digital media is forecasted to propel the M&E sector’s growth to a 10 percent annual rate, reaching INR 3 Trillion by 2026. Despite this digital boom, traditional media in India is also experiencing a steady growth, showcasing India’s diverse media consumption habits. While this might appear to be a paradox when viewed through a singular global lens, this is the truth of India – a market of AND, not OR.”
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