Indian media and entertainment sector to cross ₹3 tn by 2026
₹2.3 trillion in 2023, is expected to grow at a compound annual growth rate (CAGR) of 10% to reach ₹3.08 trillion by 2026, according to the annual media and entertainment (M&E) report by Ficci and consulting firm EY. However, the growth of ₹17,300 crore last year was half of the ₹37,100 crore growth that took place in 2022, mainly due to headwinds in advertising during the first half of the year, the report added. Except for television, all M&E segments grew in 2023, but the share of traditional media (television, print, filmed entertainment, live events, out of home, music, radio) stood at 57% of M&E sector revenues, down from 76% in 2019.
On the other hand, new media (digital and online gaming) grew the most, providing ₹12,200 crore of the total growth, and consequently, increased its contribution to the M&E sector from 20% in 2019 to 38% in 2023. The report was released on Tuesday at Ficci Frames, an annual M&E event held in Mumbai. As far as specific segments go, television advertising fell 6.5% due to a slowdown in spending by gaming and D2C (direct-to-consumer) brands, which impacted revenues for premium properties.
The Hindi-speaking market was also soft, resulting in a 3% overall ad volume de-growth. Subscription revenue grew after three years of fall on the back of price increases, though pay TV homes fell by 2 million. While linear TV viewership, or traditional broadcast TV viewing, grew 2% over 2022, 19 to 20 million smart TVs connected to the internet each week, up from around 10 million in 2021, the report said.
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