After taking a big hit in the Covid years on revenue, the media and entertainment sector surpassed its 2019 or pre-Covid level by 10 percent last year with the industry touching the highest ever mark of Rs 2 trillion.
Deals related to mergers and acquisitions (M&A) also saw strong momentum in 2022 with over 125 deals in 2022 as compared to 118 in 2021, of which 65 percent were in digital, gaming, and new media segments.
Digital, live events, and films saw significant growth in revenues last year. However, TV saw marginal growth, according to the FICCI-EY 2023 report launched on May 3.
Television subscription revenues fell for the third year in a row at 3.8 percent compared to 2021 affecting the segment's overall performance. The dip in TV subscription revenue was primarily due to a reduction of five million pay TV homes from 125 million in 2021 to 120 million last year, with average revenue per user (ARPU) remaining relatively flat. 'Pay TV' is television broadcasting in which viewers pay by subscription to watch a particular channel. Pay TV households are expected to further decline by two million in 2023, before falling slowly to 116 million households by 2025. Also, time spent on TV decreased 7 percent over 2021. While Hindi-speaking markets (HSM) saw a 6 percent drop, south markets dropped by 10 percent. Viewership of HSM as well as south markets is at its lowest level since 2018.
TV's advertising revenue grew 2 percent in 2022, almost equaling its pre-COVID-19 levels. Overall TV's revenue will grow to Rs 796 billion by 2025.
Unlike TV, digital media saw a big jump in revenue and grew 30 percent in 2022. Digital subscriptions grew 27 percent to reach Rs 72 billion. Video subscription revenues grew 27 percent in 2022 to Rs 68 billion and paid video subscriptions reached 99 million in 2022, across almost 45 million households in India, with a total viewership of around 135 to 180 million users. Audio subscriptions grew 37 percent in 2022 as paying consumers reached around 4.6 million. Digital subscriptions are expected to grow at a CAGR (Compound Annual Growth Rate) of 11 percent till 2025 and the overall segment is estimated to grow to Rs 862 billion by 2025, at a 15 percent CAGR.
Live events emerged as the fastest-growing segment of 2022 and organized events grew 129 percent over a depleted base as weddings, corporate events and activations, government initiatives, and large marquee IP (intellectual property) with international participation took place after a gap of almost two years as they were hampered due to Covid-related restrictions.
Revenue of the film industry grew 85 percent to reach 90 percent of its 2019 levels as theatres re-opened. Over 1,600 films were released in 2022, and theatrical revenues crossed Rs 100 billion, and fewer films released directly on digital platforms.
And as content production resumed, service demand for animation and VFX (visual effects) both domestic and exports increased, resulting in the segment growing 29 percent and crossing Rs 100 billion for the first time.
Online gaming grew 34 percent last year due to new players entering the space, marketing efforts, specialized platforms and brand ambassadors all worked to grow the segment which has reached to Rs 135 billion in terms of size. Real-money gaming comprised 77% of the segment's revenues. There were over 400 million online gamers in India, of which around 90- 100 million played frequently.
Other segments like print saw their advertising revenues grow 13 percent in 2022 and subscription revenues grew 5 percent. Out of home (OOH) media grew 86 percent in 2022 and reached 94 percent of 2019 levels. Music segment grew by 19 percent to reach Rs 22 billion. Film music, which had reduced during the pandemic, returned to scale and 87 percent of revenues were earned through digital means. Radio segment revenues grew 29 percent in 2022 to Rs 21 billion but were still 66 percent of 2019 revenues. Ad volumes increased by 25 percent in 2022 as compared to the previous year.
“The sector (M&E) is expected to grow 11.5 percent in 2023 to reach Rs 2.34 trillion and further grow at a CAGR of 10.5 percent to reach Rs 2.83 trillion by 2025. Through democratisation of the creator economy and disruption in digital distribution, I dream of an India with infinite storytellers finding infinite platforms to share their stories, engaging with audiences in every language, with India leading the charge across the global entertainment landscape,” said Jyoti Deshpande, Co-Chairman, FICCI Media and Entertainment Committee.
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