Indian media & entertainment sector to grow 11.5% to ₹2.34 lakh cr in 2023: FICCI-EY report

In 2022, the Indian M&E sector continued its strong growth trajectory and grew by ₹348 billion (19.9%) to reach ₹2.1 lakh crore ($26.2 billion), 10% above its pre-pandemic 2019 levels.

Indian media and entertainment sector is projected to grow 11.5% in 2023 to reach ₹2.34 lakh crore ($29.2 billion) and is projected to grow at a CAGR of 10% to reach ₹2.83 lakh crore ($35.4 billion) by 2025, according to the annual media and entertainment (M&E) report by FICCI and consulting firm EY. The report was released at the annual M&E event FICCI Frames in Mumbai on Wednesday.

In 2022, the Indian M&E sector continued its strong growth trajectory and grew by ₹348 billion (19.9%) to reach ₹2.1 lakh crore ($26.2 billion), 10% above its pre-pandemic 2019 levels. Television remained the largest segment in 2022, but digital media has cemented its position as a "strong number two segment", followed by a resurgent print, says the report.

Also, the filmed entertainment segment recovered as theatrical releases doubled, and reclaimed the fourth position by overtaking online gaming. Overall, the share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 58% of the entire industry sector revenues in 2022, down from 71% in 2019.

Except for TV subscriptions, all M&E segments grew in 2022, finds the FICCI-EY report. Digital media grew the most at ₹132 billion and consequently, increased its contribution to the M&E sector from 16% in 2019 to 27% in 2022. "If one were to include data charges associated with digital consumption in sizing, its share would stand at 50% of the total M&E sector."

Experiential -- outside the home -- segments recovered in 2022, and consequently, filmed entertainment and live events segments recovered by ₹79 billion and ₹41 billion, respectively. Overall, half the growth was driven by traditional media, and the balance by digital, online gaming, and VFX segments.

In terms of segmental performance in 2022, television advertising grew 2% to end 2022 just behind its 2019 levels, on the back of volume growth. "Subscription revenue continued to fall for the third year in a row, experiencing a 4% de-growth due to a reduction of five million pay-TV homes and stagnant consumer-end ARPUs."

Digital advertising grew 30% to reach ₹499 billion or 48% of total advertising revenues in 2022. Digital subscriptions grew 27% to reach ₹72 billion. "99 million paid video subscriptions across almost 45 million Indian households generated INR68 billion, an amount which is over 60% of broadcasters’ share of TV subscription revenues."

Ad revenues grew 13% in 2022 as print remained a “go-to” medium for more affluent and non-metro audiences. The film segment grew 85% to reach 90% of its 2019 levels as theaters re-opened and over 1,600 films were released in 2022, and theatrical revenues crossed ₹100 billion.