In 2020, the sector had a revenue shortfall of Rs 43,900 crore to Rs 1.38 lakh crore (USD 18.9 billion) and revenue nearly plunged to 2017 level, according to a joint report by industry body FICCI and global consulting firm EY.
The last quarter of 2020 showed a marked improvement in revenue for most segments and we expect the M&E (media and entertainment) sector to recover 25% in 2021 to reach Rs 1.73 trillion (23.7 billion USD), then grows at a CAGR of 13.7% to reach 2.23 trillion rupees ($30.6 billion) by 2023, he said.
In 2019, the industry revenue was Rs 1.82 lakh crore.
While we expect the M&E sector to rebound in 2021 and double to around Rs 2.68 trillion by 2025, the recovery of various segments will vary, he said.
While analyzing the revenue shortfall, the report states that digital and online games are the only segments that grew in 2020, adding a total of Rs 2,600 crore and as a result, their contribution to the M&E sector increased to 23% in 2020 compared to 16% in 2019.
Other segments fell by a total of Rs 46,500 crore, he said.
In 2020, TV has traditionally retained its place as the largest segment, while digital media has overtaken print and online gaming has overtaken a disrupted filmed entertainment segment.
According to the report, in 2020, 2.8 crore Indians paid 5.3 crore for OTT subscriptions, resulting in a 49% growth in digital subscription revenue.
While in 2019, the number was only 1.05 crore, still less than half.
Growth was largely driven by Disney+ Hotstar placing the IPL behind a paywall during the year, increased content investment by Netflix and Amazon Prime Video, and the launch of multiple language products regional, he said.
Additionally, 28.4 million Indians consumed content that came with their data plans.
Additionally, the online gaming segment remained the fastest growing segment in the M&E sector for the fourth consecutive year and recorded revenue of Rs 7,600 crore in 2020 from Rs 6,500 crore a year ago. one year old.
The segment grew by 18%, helped by working from home, homeschooling and increased online multiplayer gaming trials during the lockdown. Online gamers grew 20% to 360 million in 2020, he said.
Revenue from transaction-based games rose 21%, despite unfavorable regulation in some states, while revenue from casual games rose 7%, he added.
According to the report, the largest absolute contributor to the sector’s fall was the filmed entertainment segment which fell to Rs 7,200 crore in 2020 from Rs 11,900 crore for 2019.
While theater revenues fell to less than a quarter of their 2019 levels, some of that loss was offset by higher digital rights revenues which nearly doubled in 2020 to Rs 3,500 crore” , did he declare.
However, halting production for over six months has had its impact, which will now only recover once a healthy slate of films is ready for release and the fear of entering crowded places will fade.
The report estimates that TV, film and music would take one to two years, assuming no more setbacks, while traditional print, radio and out-of-home would take over three years.
He further stated that the M&E industry has become media independent as video, audio, text and experiences are now available in almost every segment.
The sector is redefining itself through these 4 verticals – Video (TV, OTT video), Experiential (Online games, cinemas, events, OOH), Textual (print, online news) and Audio (radio, music, OTT audio) , did he declare. .