The latest FICCI-EY report, unveiled at FICCI FRAMES 2024 in Mumbai, sheds light on the robust growth of India’s media and entertainment (M&E) sector, which expanded by 8% in 2023, reaching INR 2.3 trillion (US$27.9 billion). This surge marks a significant 21% increase from its pre-pandemic levels in 2019.
According to Ashish Pherwani, Partner and Media & Entertainment Leader at EY India, the M&E sector is undergoing a transformative shift, with digital channels taking precedence over traditional media. In 2023, new media accounted for 52% of total advertising revenues, showcasing a seismic change in consumer behaviour. However, traditional media in India also experienced growth, highlighting the coexistence of digital and traditional platforms.
Kevin Vaz, Chairman of FICCI Media and Entertainment Committee and CEO of Viacom 18, emphasized India’s unique M&E landscape, characterized by a blend of tradition and innovation. From technology-enhanced entertainment channels to AI-powered newsreaders and traditional print media, the sector thrives on diversity and dynamic growth. Vaz underscored the government’s efforts to enhance digital infrastructure, positioning India for significant transformation in the M&E sector.
With projections indicating nearly a billion active screens in India by 2030, the M&E sector anticipates exponential growth. Mobile devices are expected to dominate with a 3:1 ratio, driving demand for short-form content and social commerce. Pay TV, Free TV, and Connected TV markets are poised for substantial expansion, with around 60 to 80 million households each.
Segmental Performance in 2023:
Digital Subscription: Digital subscription revenue grew by 9% to INR 78 billion, driven by premium cricket properties moving behind paywalls. While paid video subscriptions declined slightly, paid music subscriptions surged from 5 million to 8 million, generating INR 3 billion. Online news subscriptions also saw growth, generating INR 2 billion.
Music: The Indian music segment witnessed a 10% growth, reaching INR 24 billion in 2023. However, the growth rate was slower due to certain music OTT platforms transitioning to paid models. Despite reaching 185 million users, only 8 million were paying subscribers, with advertising on platforms like YouTube contributing significantly to revenue.
Radio: Radio segment revenues grew by 10% to INR 23 billion, fuelled by increased retail and local advertising. Ad volumes rose by 19% compared to the previous year, although ad rates remained below 2019 levels.
