Media & Entertainment Growth Shrinks 24% in 2020: Report

India’s media and entertainment sector declined by 24% in 2020 and stood at $19 billion (₹1.38 trillion) as the TV and print media segments were hit by the downturn. pandemic. Only the digital media and online gaming segment saw growth in 2020, according to a report by FICCI and EY.

However, the outlook for 2021 is positive. “The Indian media and entertainment sector is expected to grow by 25% in 2021 and reach $23.7 billion (₹1.73 trillion). The sector is expected to touch $30.6 billion (₹2.23 trillion) by 2023 at a CAGR of 17%,” the report adds.

Ashish Pherwani, Partner and Head of Media and Entertainment, EY India, said the M&E industry has witnessed a shift in demand patterns as consumers seek alternatives and have time to experiment. “Consumption patterns have changed and increased in online news, games and entertainment. Each segment has redefined itself in the vertical markets by becoming media independent and integrated video, audio, text 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,” he added.

TV segment

The TV segment, which is the largest in the industry, decreased by 13% from ₹787 billion to ₹685 billion. “Revenue from the TV segment is expected to grow at a CAGR of 7% to reach ₹847 billion by 2023, driven by an expanded subscriber base and growth in connected TVs,” he said. .

Digital media grew by 5.5% to ₹235 billion and is projected to grow by 22% to ₹425 billion by 2023. cut fresh content on TV, e-sports went behind a wall paying.

“Paid OTT subscriptions surpassed 50 million for the first time in 2020. Digital advertising remained stable thanks to an increased allocation of ad spend by advertisers who accelerated their investments in digital sales channels,” the report adds. .

Digital Advertising

Pherwani said digital advertising is expected to overtake all other advertising mediums by 2024-25. “Newspapers’ digital products will increasingly go behind paywalls and are expected to generate €4 billion in subscription revenue by 2023. Demand for original content is estimated to double by 2023 compared to 2019 levels to reach more than 3,000 hours per year. ,” he added.

Online gaming has been the fastest growing segment for the media and entertainment industry in 2020 and is expected to reach the ₹155 billion mark by 2023. “The online gaming segment has grown by 18 % in 2020 to reach ₹77 billion helped by work from home, school from home and increased trial of online multiplayer games during lockdown,” the report adds.

Meanwhile, the print sector shrunk 35% in 2020 due to the pandemic due to a 41% drop in advertising and a 24% drop in circulation.

Meanwhile, although the number of M&A deals increased from 64 in 2019 to 77 in 2020, the deal value was reduced to ₹68 billion in 2020 from ₹101 billion in 2019, the FICCI-EY report added.