FICCI-EY report says India’s M&E sector to reach ₹2.83 trillion by 2025

In 2022, this segment is expected to increase 348 billion (19.9%) to reach 2.1 trillion ($26.2 billion), a 10% increase over pre-pandemic 2019 levels.

The report was released on Wednesday at FICCI Frames, an annual M&E event held in Mumbai.

The report suggests that all M&E segments are expected to grow in 2022 except TV subscription. Digital media leading the pack 132 billion, increasing the contribution of its M&E sector from 16% in 2019 to 27% in 2022. Including data charges related to digital consumption, the share of digital media in the M&E sector will increase to 50%.

Television advertising experienced 2% growth in 2022, ending the year just below 2019 levels due to volume expansion. Subscription revenue declined for the third year in a row, falling 4%, due to a reduction of 5 million in pay-TV households and stagnant consumer-end ARPU (average revenue per user). Linear viewership declined 7% year over year, but daily internet-connected smart TV usage is expected to grow from around 5 million to 8-10 million in 2022.

Overall digital advertising revenue grew 30% 499 billion and accounts for 48% of all advertising revenue. Digital subscription grew by 27%, reached 72 billion. Nearly 45 million Indian households had 99 million paid video subscriptions, generating 68 billion and represents over 60% share of broadcasters in TV subscription revenue.

Print advertising revenue to grow by 13% in 2022, as print continues to be a popular medium for affluent and non-metro audiences. Rising cover prices led to a 5% increase in subscription revenue, which stabilized at 15-20% below pre-pandemic levels.

The movie segment experienced 85% growth after cinemas reopened, reaching 90% of 2019 levels. Over 1,600 films to release in 2022 exceed theatrical revenue The report states that 100 billion and less films are debuting on digital platforms.

Online gaming to expand by 34% in 2022 135 billion, driven by new players, marketing efforts, exclusive platforms and brand ambassadors. India had over 400 million online gamers, of which 90–100 million played regularly. The real money gaming segment accounts for 77% of the revenue.

Animation & VFX segment grew by 29% 100 billion for the first time due to the resumption of content production and increased demand for services both domestically and internationally.

Emphasizing on the tremendous potential of the Indian M&E industry, Apoorva Chandra, Secretary, Ministry of Information and Broadcasting, said that the government would like to be a facilitator and enabler for this segment as opposed to regulators.

“The reason why the Indian M&E sector makes up less than 1% of the global figure can be attributed to manpower and infrastructure,” Chandra said.

The government also wants to reduce paperwork for television channels that can be uplinked but not downlinked in India, he said, helping turn the country into an uplinking hub. Furthermore, while the government intends to continue with its soft-touch approach towards OTT platforms, and has received only one complaint at its end, the services should be cognizant of the quality of the language used, he said. .

“The Indian M&E consumer base is large but heterogeneous, hungry for content but only willing to pay for value, and ready to experiment with technology, be it streaming, digital payments, online Be it education, virtual experience, e-commerce, social media. , or gaming. The diverse consumer base, coupled with favorable macroeconomic and demographic factors, translate into a very exciting time for the sector,” Ashish Pherwani, EY India media and entertainment leader, said in a statement.

Updated: May 03, 2023, 01:04 PM IST