The Indian media and entertainment industry will collectively be worth ₹2.8 lakh crore by 2025, Ernst & Young (EY) and the Federation of Indian Chambers of Commerce and Industry (FICCI) estimated in a joint report. Live events and animation and visual effects industries would lead the expansion, with compound annual growth rates of 22.2% and 21.1%, respectively.
Digital media’s share of the media and entertainment industry increased to 27% in 2022, from 16% in 2019, EY estimated in the report, which was released at the FICCI Frames 2023. event.
“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,” the consulting firm said. Subscription revenue from digital media now stood at 45% of the equivalent revenue from TV, EY said. This came even as the share of digital advertising grew to 48% of the overall advertising market, with advertising growth outpacing the pace of expansion in India’s Gross Domestic Product.
Television struggles
Television advertising struggled to grow even after other industries bounced back after the pandemic due to a mix of reasons, EY said. Direct-to-consumer start-ups that advertised on TV when flush with initial funds tightened their purse strings after further investments into these businesses ran dry; restrictions on advertisements for betting and cryptocurrencies shut off another major group of ad buyers; supply shortages in the automobile industry led to reduced spend on marketing; and global technology companies also reduced ad spend in India following global austerity.
TV distribution also suffered due to increasing digitisation.
“Industry discussions indicated that most consumers opted for packs … with minimal customisation,” EY noted. “However, periods of temporarily suspended connections increased marginally as alternate … entertainment options were available on mobile phones, which reduced the need to recharge [TV subscriptions] in a timely manner,” it added.
Published - May 03, 2023 08:55 pm IST
