The India’s Media and Entertainment (M&E) sector surged past the INR 2.3 trillion mark in 2023 and is projected to scale up to INR 3.1 trillion by 2026.
Key Points:
- The M&E sector in India sustained its upward trajectory, witnessing an increase of INR 173 billion (8.1%), reaching INR 2.3 trillion (US$27.9 billion).
- While television, print, and radio still trailed their 2019 levels, the sector remained 21% above its pre-pandemic benchmarks.
- Digital media is poised to surpass television as the largest segment by 2024.
- Projections indicate a 10.2% growth for the M&E sector by 2024, with a subsequent Compound Annual Growth Rate (CAGR) of 10% leading to the INR 3.1 trillion milestone by 2026.
The M&E sector in India has outpaced the growth of many developed nations, with consumption trends favoring digital media, social media, video and audio streaming, and online gaming. However, traditional media avenues like regional television, print, radio, Out-of-Home (OOH), and cinema also experienced growth and profitability.
We stand at an “inflection point” where digital media is set to surpass traditional media in the Indian M&E landscape. In 2023, new media accounted for 52% of total advertising revenues, and digital subscriptions, when accounting for corresponding data charges, are projected to dominate subscription revenues. New media, comprising digital and online gaming, spearheaded growth, contributing INR 122 billion to the overall surge.
Experiential segments such as online gaming, filmed entertainment, live events, and OOH media demonstrated robust growth in 2023, collectively contributing 48% of the total growth. With the exception of television, which experienced a slight decline of 2%, all other segments reported positive growth.
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Segmental Performance in 2023:
- Television: Television advertising witnessed a 6.5% decline, attributed to reduced spending by gaming and Direct-to-Consumer (D2C) brands. However, subscription revenue saw growth after three years of decline, although pay TV homes decreased by two million.
- Digital Advertising: Digital advertising surged by 15% to reach INR 576 billion, constituting 51% of total advertising revenues.
- Digital Subscription: Digital subscription grew by 9% to INR 78 billion, albeit at a slower pace than in previous years, largely due to premium cricket properties moving behind paywalls.
- Print: Print media defied global trends, with advertising revenues growing by 4% in 2023, while subscription revenues saw a 3% increase.
- Online Gaming: Growth in the online gaming segment moderated to 22% in 2023, reaching INR 220 billion, making it the fourth-largest segment.
- Film: The film segment expanded by 14% to reach INR 197 billion, with theatrical revenues hitting an all-time high.
- Animation and VFX: Growth in this segment was modest at 6% due to global supply chain disruptions.
- Live Events: The organized segment of live events saw a 20% growth, surpassing pre-pandemic levels.
- OOH: Out-of-Home media grew by 13% in 2023, surpassing 2019 levels.
- Music: The music segment grew by 10% to INR 24 billion, with digital means contributing to 87% of revenues.
- Radio: Radio segment revenues increased by 10% in 2023, driven by more retail and local advertising.
In summary, the Indian M&E sector continues to evolve rapidly, with digital media emerging as a dominant force while traditional avenues also thrive and adapt to changing consumer preferences.
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