Indian M&E sector crossed Rs 2.3-trillion in 2023

The latest iteration of the annual report launched at FICCI Frames 2024 also revealed 70% of growth stemmed from new media comprising digital and online gaming, while TV witnessed a marginal decline of 2%.

The report, titled #Reinvent: India’s media & entertainment sector is innovating for the future, was launched on 5 March at the FICCI Frames 2024 in Mumbai.  

New media, comprising digital and online gaming, emerged as the frontrunner in growth, contributing Rs 122-billion of the overall increase of Rs 173-billion, and consequently, increased its contribution to the M&E sector from 20% in 2019 to 38% in 2023.

Contrary to the global trend, print media continued to thrive in India, with advertising revenues growing by 4% in 2023. Notably, there was significant growth in premium ad formats, as print remained a preferred medium for affluent metro and non-metro audiences. Subscription revenues also grew by 3% due to rising cover prices.

Meanwhile, OOH media grew by 13% in 2023, surpassing its 2019 levels. Growth was led by premium properties and locations. Active digital OOH screens crossed 1,00,000 contributing 9% of total segment revenues.

Digital advertising grew 15% to reach Rs 576-billion, constituting 51% of total advertising revenues. This figure includes advertising by SME and long-tail advertisers totalling over Rs 200-billion, and advertising earned by eCommerce platforms amounting to Rs 86-billion.

Ashish Pherwani, partner and media and entertainment leader, EY India, said, “I believe the M&E sector is at the “inflection point” we foresaw in 2018, with the dominance of digital channels over traditional media. In 2023, new media comprised 52% of total advertising revenues, yet, unlike in many other countries, Indian traditional media also grew. This underscores the unique Indian market where while we are witnessing a seismic shift towards digital consumption, there is still adequate headroom for traditional media to grow.”

Kevin Vaz, chairman, FICCI media and entertainment committee and chief executive officer, broadcast entertainment, Viacom 18, said, “India is a unique market where the M&E sector distinguishes itself through a harmonious fusion of tradition and innovation. Here, technology-enhanced entertainment channels, OTT platforms, AI-powered newsreaders, traditional print media, flagship films, and short-form content not only coexist but thrive together, showcasing the vibrant diversity and dynamic growth of our industry. The Government of India’s thrust on improving digital infrastructure in the country combined with our ambition to be at the forefront of the next big technological thrust in media and entertainment, our sector is primed for a massive transformation.”