Indian media and entertainment market to exceed $23 billion by 2023

The Indian media and entertainment sector is expected to rapidly increase this year with a value of INR1.73 trillion (US$23.7 billion).

According to a new FICCI-EY report, the M&E sector in India is expected to reach INR 2.23 trillion (US$30.6 billion) by 2023 at a CAGR of 17%.

TV is expected to remain the largest segment, in spite of declining revenues over the past year. In 2020, the Indian TV industry declined 13% from INR787 billion to INR685 billion (US$10.5 billion), largely as a result of discounted advertising rates during the months of lockdown.

The subscription market declined by  7% to INR434 billion (US$5.79 billion) due to the increasing prevalence of free TV and lower ARPU.

The report notes that overall time spent watching TV in India increased by 9% over the year, and that smart TV sets surpassed five million.

Looking forward, TV revenues are expected to grow at a CAGR of 7% to INR847 billion (US$11.3 billion) by 2023 as connected TV adoption continues to increase and OTT services benefit as a result.

Dilip Chenoy, secretary general FICCI, said: “Though the media and entertainment sector has been largely impacted by the pandemic, the positive news is that the digital subscription has grown by 49% and the online gaming industry has grown by 18%. Different sectors of the media and entertainment industry will take different time to recover and this makes the report more crucial.”

Ashish Pherwani, partner and media and entertainment leader, EY India, said: “The M&E sector witnessed a shift in demand patterns as consumers actively sought alternatives and had the time to try new things. Consumption patterns shifted and increased across online news, gaming, and entertainment. 

“The supply side too transformed as companies took the opportunity to reinvent themselves. Every segment redefined itself across verticals by becoming medium agnostic and embedded video, audio, textual and experiential products to enhance their offerings. However, the compelling content created around news and escapism, and the passion to build some of India’s most powerful brands remained resolute.”