India's media, entertainment sector at inflection point; grew 8% in 2023: FICCI-EY report

New Delhi [India], March 5 (ANI): Indian media and entertainment sector grew by 8 per cent in 2023, touching Rs 2.3 trillion (USD 27.9 billion), 21 per cent above its pre-pandemic levels in 2019, according to a FICCI-EY report.
According to the report titled '#Reinvent: India's media & entertainment sector is innovating for the future', the new media space, 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 media and entertainment sector from 20 per cent in 2019 to 38 per cent in 2023.
Experiential (outside the home and interactive) segments continued their strong growth in 2023, and consequently, online gaming, filmed entertainment, live events, and out-of-home media segments grew at a combined 18 per cent, contributing 48 per cent of the total growth.
With the exception of television, which experienced a marginal decline of 2 per cent, all other segments experienced positive growth in 2023, the report asserted.
"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," said Kevin Vaz, Chairman, FICCI Media and Entertainment Committee and Chief Executive Officer - Broadcast Entertainment, Viacom 18.
"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," Vaz added.
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 per cent of total advertising revenues, yet, unlike in many other countries, Indian traditional media also grew."
This, he said, underscores the unique Indian market where while it is witnessing a seismic shift towards digital consumption. However, there is still adequate headroom for traditional media to grow.
Among other highlights from the report is that Indian advertising reached Rs 1.1 trillion in 2023.
Digital advertising grew 15 per cent in 2023 and surpassed traditional advertising for the first time. Social, sports, e-commerce and SME advertisers will continue to drive the growth in the sector moving forward.
Also, according to the joint report release today, India is expected to have almost a billion active screens by 2030.
Of these, around 240 million will be large (TV, laptop, PC), while the remaining will be small (mobile phones, phablets). Pay TV, Free TV, and Connected TV are expected to emerge as significant markets, each comprising between 60 to 80 million homes.
The 3:1 ratio in favour of mobile phones will sustain the demand for short videos and social commerce.
The online gaming space is expected to reach Rs 388 billion by 2026.
The segment will see growth across all its verticals, including e-sports, fantasy sports, casual gaming, and other games of skill to reach an estimated 150 million daily users. Revenue growth will be led by mobile-based real-money gaming and casual gaming. (ANI)