The media and entertainment sector is anticipated to grow 12–14% and reach Rs 1.6 billion in revenue in FY24
- ByStartupStory | January 3, 2023
According to a forecast by rating agency Crisil, the Indian media and entertainment industry will likely increase between 12 and 14% in the coming years, bringing in Rs 1.6 lakh crore. It was said that digital platforms would be followed by TV and print in terms of advertising revenue growth for the media and entertainment (M&E) sector in India.
Ad revenue, which accounts for 55 percent of the sector’s revenue, will grow 14 percent, given its strong correlation with economic activity. Also, the general elections expected in mid-2024 will trigger an increase in ad spending in the last quarter of the next fiscal,” Crisil said.
According to the research, subscription revenue would account for the remaining 45% and rise at a slower rate of 12%.
Crisil Rating Director Naveen Vaidyanathan said: “While TV will continue to dominate ad revenue share given its wider reach, digital will lead in growth, rising 15-18 percent annually over the medium term.”
According to him, because of the rapid uptake of over-the-top (OTT) platforms, online gaming, e-commerce, e-learning, and online news platforms, digital has become the preferred medium in recent years.
“After the pandemic, digital has become the second-largest segment after TV in terms of ad spends. Together, they account for over three-fourths of the ad revenue for the M&E sector, followed by the print segment with a one-fifth share,” Vaidyanathan added.
Additionally, the print media will experience a “strong” ad revenue increase of 15% in the upcoming fiscal year.
However, it said that print media’s advertising revenues “would still be 800-1,000 basis points below the pre-pandemic level. This is a result of the ads’ delayed rebound, particularly for the English versions.”
Next fiscal year, greater commuting and higher ad budgets for micro, small, and medium-sized businesses—the primary drivers for these segments—could push other hyperlocal media, like radio and outdoor, to pre-pandemic levels.
In regards to movie theater collections, which were the most negatively impacted by COVID-19, Crisil stated that these non-ad revenue sources may approach pre-pandemic levels with considerable growth of 30% in FY24 after making a strong rebound this year.
“The addition of screens amid rising occupancy will support the growth. “In the long term, subscription revenue growth for TV and print would be driven by moderate improvements in realizations of consumer preference toward digital medium,” it said.
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