Media, entertainment sector poised to hit $30.9 bn by 2024

The Indian media and entertainment sector is expected to grow by 17% in 2022 to reach the 2019 pre-pandemic levels of $25.2 billion, according to the latest report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and consultancy EY. By 2024, it is expected to grow at a compound annual growth rate (CAGR) of 11% to touch $30.9 billion, it said. Digital media has firmly established itself as the second-largest segment in the media and entertainment industry, growing by ₹6,800 crore in 2021, while traditional media contributed 68% of the sectoral revenues of $21.5 billion, up 16.4% year-on-year in 2021.

Furthermore, while India’s nominal gross domestic product (GDP) grew 19% in 2021, advertising growth outperformed with 25% growth. The highest growth of ₹6,200 crore was in television advertising, followed by digital advertising at ₹5,500 crore and print at ₹2,900 crore. By 2024, the advertising market should reach ₹1 trillion, it said.

However, subscription revenue for television continued to fall for the second consecutive year, down 6.2% because of a reduction in pay TV homes and a fall in average revenue per user (Arpu). Connected TV sets, however, increased to 10 million.

“India has always been a different kind of media and entertainment market. High on volume and low on Arpu, yet up top with the rest on technology and ahead of the pack when it comes to digital adoption. Technology has led to the democratization of M&E in India, content is now created for the people, by the people and of the people,” said Ashish Pherwani, EY India media and entertainment leader.

Digital advertising grew 29% to reach ₹24,600 crore. In addition, advertising by small and medium enterprises and long-tail advertisers reached ₹11,700 crore, including advertising earned by e-commerce firms of ₹5,500 crore, which accounted for 16% of total digital advertising. Digital subscription also grew 29% to reach ₹5,6000 crore. About 80 million paid video subscriptions across 40 million households generated ₹5,400 crore, or 50% of broadcasters’ share of TV subscription revenues. Just 3 million consumers bought music subscriptions, generating ₹160 crore, because of a plethora of free audio options.