India’s M&E sector to reach ₹2.83 trillion by 2025, says Ficci-EY report
- The diverse consumer base, coupled with favourable macroeconomic and demographic factors, have translated into a very exciting time for the Indian M&E industry
Mumbai: The Indian media and entertainment industry will likely grow at 11.5% in 2023 to reach ₹2.34 trillion ($29.2 billion), and then clock a compunded annual growth rate of 10% to hit ₹2.83 trillion ($35.4 billion) by 2025, according to the annual media and entertainment (M&E) report by Ficci and consulting firm EY.
In 2022, the segment grew by ₹348 billion (19.9%) to reach ₹2.1 trillion ($26.2 billion), a 10% increase over pre-pandemic 2019 levels.
The report was released Wednesday at Ficci Frames, an annual M&E event held in Mumbai.
The report indicates that all M&E segments, except for TV subscriptions, experienced growth in 2022. Digital media led the pack with a growth of ₹132 billion, increasing its M&E sector contribution from 16% in 2019 to 27% in 2022. Including data charges related to digital consumption, digital media's share of the M&E sector would rise to 50%.
Television advertising experienced a 2% growth in 2022, ending the year just below 2019 levels due to volume expansion. Subscription revenue declined for the third consecutive year, dropping 4% because of a 5 million reduction in pay-TV homes and stagnant consumer-end ARPUs (average revenue per user). Linear viewership fell 7% on year, but daily internet-connected smart TV usage increased from approximately 5 million to 8-10 million in 2022.
Digital advertising revenues rose 30%, totaling ₹499 billion and accounting for 48% of all advertising revenues. Digital subscriptions grew 27%, reaching ₹72 billion. Nearly 45 million Indian households held 99 million paid video subscriptions, generating ₹68 billion and representing over 60% of broadcasters' share of TV subscription revenues.
Print advertising revenues increased 13% in 2022, as print remained a popular medium for affluent and non-metro audiences. Subscription revenues grew 5% due to rising cover prices, stabilizing at 15-20% below pre-pandemic levels.
The film segment experienced an 85% growth, reaching 90% of its 2019 levels as theaters reopened. Over 1,600 films were released in 2022, with theatrical revenues surpassing ₹100 billion and fewer films debuting on digital platforms, the report said.
Online gaming expanded 34% in 2022 to reach ₹135 billion, driven by new players, marketing efforts, specialized platforms, and brand ambassadors. India had over 400 million online gamers, with 90-100 million playing regularly. Real money gaming accounted for 77% of segment revenues.
The animation and VFX segment grew by 29%, crossing ₹100 billion for the first time as content production resumed and demand for services increased domestically and internationally.
Emphasizing the tremendous potential of the Indian M&E industry, Apurva Chandra, secretary, ministry of information and broadcasting said the government would like to be facilitators and supporters for the segment, as opposed to regulators.
“The reason that the Indian M&E sector makes up less than 1% of global figures can be attributed to manpower and infrastructure,” Chandra said.
The government is looking to reduce paperwork for television channels that may be uplinked but not downlinked in India, he added, helping the country turn into an uplinking hub. Also, while the government intends to continue with its soft-touch approach towards OTT platforms, and has only received only one complaint at its level, services need to be cognizant of the quality of language used, he said.
“The Indian M&E consumer base is large but heterogenous, hungry for content but willing to pay only for value, and more than ready to experiment with technology, be it streaming, digital payments, online education, virtual experiences, e-commerce, social media, or gaming. The diverse consumer base, coupled with favourable macroeconomic and demographic factors, have translated into a very exciting time for the sector,” Ashish Pherwani, EY India media and entertainment leader, said in a statement.
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First Published:3 May 2023, 01:04 PM IST
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