Home Entertainment Indian media and entertainment sector set to surpass ₹3 trillion by 2026

Indian media and entertainment sector set to surpass ₹3 trillion by 2026

Indian media and entertainment sector set to surpass ₹3 trillion by 2026

The Indian media and entertainment sector, which reached ₹2.3 trillion in 2023, is projected to achieve a compound annual growth rate (CAGR) of 10%, reaching ₹3.08 trillion by 2026, according to the annual media and entertainment (M&E) report by Ficci and consulting firm EY.

However, the growth of ₹17,300 crore last year was only half of the ₹37,100 crore growth in 2022, primarily due to challenges in advertising during the first half of the year.

In 2023, all M&E segments, except for television, experienced growth. Traditional media, comprising television, print, filmed entertainment, live events, out of home, music, and radio, accounted for 57% of M&E sector revenues, down from 76% in 2019. Conversely, new media, represented by digital and online gaming, saw the most significant growth, contributing ₹12,200 crore to the total growth and increasing its contribution to the M&E sector from 20% in 2019 to 38% in 2023.

The report, unveiled at Ficci Frames, highlighted that television advertising declined by 6.5% due to reduced spending by gaming and D2C (direct-to-consumer) brands, impacting revenues for premium properties. Despite a 3% overall ad volume de-growth in the Hindi-speaking market, subscription revenue grew after three years of decline, driven by price increases. Linear TV viewership increased by 2% over 2022, while the number of smart TVs connected to the internet each week doubled from around 10 million in 2021 to 19 to 20 million in 2023.

In contrast to global trends, print in India continued to thrive, with a 4% growth in advertising revenues in 2023. Premium ad formats witnessed notable growth, positioning print as a preferred medium for affluent and non-metro audiences. Subscription revenues also grew by 3% on account of rising cover prices.

Kevin Vaz, CEO of broadcast entertainment at Viacom 18 Pvt. Ltd, noted that while the M&E industry is anticipated to grow at a 10% CAGR, traditional mediums like television and print are poised for growth. Digital advertising reached ₹57,600 crore in 2023, representing 51% of total advertising revenues and growing by 15%. Digital subscription, however, grew by 9% to reach ₹7,800 crore, a third of the 27% growth seen in 2022, as premium cricket properties like the IPL (on JioCinema) became freely accessible.

Paid video subscriptions decreased by 2 million in 2023 to 97 million, spanning 43 million households in India. Industry experts acknowledged that paid subscription growth for OTT platforms has plateaued since the spike during the COVID-19 lockdown. The challenges of piracy and a shift towards bundled offerings from individual OTT subscriptions have also impacted the average revenue per user (ARPU).

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