Forecasting Growth in the Media and Entertainment Industry

New Delhi, The media and entertainment (M&E) sector in India is poised for substantial growth, with digital media projected to surpass television as the leading segment by 2024, according to a joint report by FICCI (Federation of Indian Chambers of Commerce and Industry) and EY. The report forecasts significant expansion in the sector, reaching a valuation of over Rs 3 lakh crore by 2026.

Shifting Dynamics in the M&E Landscape

In 2023, the Indian M&E sector witnessed robust growth of 8.1%, reaching Rs 2.32 lakh crore. Despite television’s dominance with revenues of Rs 69,600 crore, digital media emerged as a formidable contender, surpassing Rs 65,400 crore. The report predicts digital media to reach Rs 75,100 crore in 2024, setting the stage for transformative growth.

Digital Media: Driving Forces of Growth

Kevin Vaz, Chairman of FICCI Media and Entertainment Committee, attributes the surge in digital media to various factors, including a robust digital infrastructure, widespread adoption of OTT platforms, and significant growth in the gaming segment. This digital boom is expected to drive the sector’s annual growth rate to 10% and propel it to cross the Rs 3 trillion mark by 2026.

Rise of Digital Advertising

The report anticipates digital advertising to experience exponential growth, with a projected CAGR of 13.5% to reach Rs 84,200 crore. Improved governance and increased focus on digital platforms are cited as key drivers for this upward trajectory.

Embracing Digital Transformation

The advent of connected TV and the proliferation of broadband connectivity have revolutionized consumer behavior, with internet penetration reaching new heights. Despite India’s substantial app downloads, there is untapped potential in monetization, particularly in social media apps.

Resilience of Traditional Media

Traditional media, comprising television, print, radio, and others, continues to play a significant role in the M&E sector. However, its share of sector revenues has declined from 76% in 2019 to 57% in 2023. Print media, in particular, has defied global trends, experiencing growth in advertising and subscription revenues.

Looking Ahead

While the M&E sector has shown resilience, there are challenges, including the recovery of television advertising and maximizing digital monetization opportunities. However, with the right strategies and continued innovation, the industry is poised for sustained growth, shaping the future of media and entertainment in India.