Economy

Media and entertainment sector grew about 9%, says FICCI-EY report

Our Bureau Mumbai | Updated on March 27, 2020

TV and print remain two largest segments; digital media on a roll

The Indian Media and Entertainment (M&E) sector grew about 9 per cent to reach ₹1.82 trillion ($25.7 billion) in 2019, and, with an annual 10 per cent growth, it is expected to cross ₹2.4 trillion ($34 billion) by 2022.

The sector continues to grow faster than GDP, driven primarily by growth in subscription-based business models and India’s attractiveness as a content production and post production destination, according to a FICCI-EY report.

While television and print retained their positions as the two largest segments, digital media overtook filmed entertainment in 2019 to become the third-largest segment of the M&E sector. Digital subscription revenues more than doubled from 2018 levels and digital advertising revenues grew to command 24 per cent of total advertising spend, the report, The era of consumer A.R.T. – Acquisition, Retention and Transaction, which was launched today, said.

“Riding the wave of exponential progress made towards digital accessibility and adoption, the M&E industry has been a forerunner of a dynamic and aspirational India. New products and business models are being imagined to capitalise on the rise in media consumption. Global players are recognising the need to build India-centric offerings. The coming years are likely to usher in greater innovation in content formats, means of dissemination, and business models,” Uday Shankar, Vice-President, FICCI and Chair, FICCI Media and Entertainment Division, said.

The rapid proliferation of mobile access is enabling on-demand, anytime-anywhere content consumption nationwide. With a population of 1.3 billion, a tele-density approaching 89 per cent of households, 688 million internet subscribers and nearly 400 million smartphone users, India’s telecom industry is poised to become the primary platform for content distribution and consumption. India ranks as one of the fastest-growing app markets globally, where entertainment apps are driving significant consumer engagement.

Online gaming retained its position as the fastest growing segment on the back of transaction-based games, mainly fantasy sports, increased in-app purchases and a 31 per cent growth in the number of online gamers to reach around 365 million.

“The M&E sector witnessed a surge in content consumption as digital infrastructure, quantum of content produced and per-capita income increased in 2019. Driven by the ability to create direct-to-customer relationships, the sector firmly pivoted towards a B2C operating model, changing the way it measured itself. As entertainment and information options grew and choice increased, the era of consumer Acquisition, Retention and Transaction (ART) redefined the media value chain, leading to the emergence of many new trends and strategies across content, distribution, consumption and monetisation,” Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, said.

“The coronavirus outbreak will have a significant adverse impact on the sector, the situation is still evolving both in India and many parts of the world, the scale of the impact cannot be estimated immediately,” he added.

Published on March 27, 2020

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