Media and entertainment sector revenue crosses Rs 2 trillion mark

The gross revenue of the media and entertainment industry rose to Rs 2.1 trillion in 2022, which is 10% higher than its pre-pandemic levels in 2019,

The Indian media and entertainment sector posted a robust 19.9 per cent growth in 2022 and crossed the Rs 2 trillion mark in annual revenue for the first time led by a sharp jump in the digital advertising mop-up.

The gross revenue of the media and entertainment industry rose to Rs 2.1 trillion in 2022, which is 10 per cent higher than its pre-pandemic levels in 2019, according to a joint report by Ernst & Young and industry body FICCI.

The media and entertainment (M&E) sector is projected to grow by 11.5 per cent in 2023 to reach Rs 2.34 trillion ($29.2 billion) size. Then it is estimated to grow at a compound annual growth rate (CAGR) of 10 per cent to reach Rs 2.83 trillion ($35.4 billion) by 2025, the report said.

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Advertising revenue grew by 19 per cent in 2022 and crossed the Rs 1 trillion mark for the first time. The size of digital media increased by Rs 132 billion to reach Rs 571 billion in 2022. The digital media now comprises 27 per cent of the Indian M&E sector and 48 per cent of all advertising revenues.

“Internet access even in remote areas, low cost of data and smartphone penetration has contributed to the growth of digital media,” said Subhrakant Panda, president of FICCI.

Except for TV subscriptions, all M&E segments grew in 2022. Overall, half the growth was driven by traditional media, and the balance by digital, online gaming and visual effects (VFX) segments.

Digital media grew the most at Rs 132 billion and consequently, increased its contribution to the M&E sector from 16 per cent in 2019 to 27 per cent in 2022. "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 report noted.

The report titled ‘Windows of opportunity - India’s media & entertainment sector maximising across segments’ was released at the FICCI FRAMES 2023 event in Mumbai.

Digital advertising grew 30 per cent to reach Rs 499 billion or 48 per cent of total advertising revenues. Included in this is advertising by SME and long-tail advertisers of Rs 180 billion and advertising earned by e-commerce platforms of Rs 70 billion.

Print advertising revenues grew by 13 per cent in 2022. The print subscription revenues increased by 5 per cent during the year on the back of rising cover prices. However, it remained around 20 per cent below the pre-Covid-19 levels. Digital revenues remain elusive for most newspaper companies, the report noted.

Television advertising grew 2 per cent to end 2022 just behind its 2019 levels, on the back of volume growth. Subscription revenue continued to fall for the third year in a row, experiencing a 4 per cent de-growth due to a reduction of five million pay TV homes and stagnant consumer-end average revenue per user (ARPU).