: Digital advertising expected to outpace all other ad media by 2024-25: FICCI-EY Report #IndiaNEWS #Report The FICCI-EY Report 2021 cited digital media and online gaming as the segments to see a massive

Digital advertising expected to outpace all other ad media by 2024-25: FICCI-EY Report #IndiaNEWS #Report
The FICCI-EY Report 2021 cited digital media and online gaming as the segments to see a massive growth in 2020, along with other key findings.

The Indian Media and Entertainment (M&E) sector has de-grown by 24% to INR1. 38 trillion (US billion) in 2020, states the FICCI-EY report ‘Playing by new rules’, launched today for 2021. It is, however, expected to grow 25% in 2021 to reach INR1. 73 trillion (US. 7 billion).

With its current trajectory, the M&E sector in India is expected to reach INR 2. 23 trillion (US. 6 billion) by 2023 at a CAGR of 17%. In 2020 while television continued to remain the largest segment, digital media has overtaken print, and online gaming has overtaken a disrupted filmed entertainment segment.

Digital media and online gaming were the only segments which grew in 2020 adding an aggregate of INR26 billion. Other segments have degrown by an aggregate of INR467 billion. While M&E as a sector has usually grown and often outperformed India’s nominal GDP, the sector fell three times (3x) India’s nominal GDP fall of 8% due to the discretionary nature of the spend. Subscription revenues, however, proved their mettle by holding up better than advertising revenues.

Sanjay Gupta, Chairman, FICCI Media & Entertainment Committee, said, “Digital is fuelling an unprecedented growth in content creation and consumption in almost every Indian language, creating new economic opportunities for both the media and entertainment industry and creative professionals across the country. We need to capitalize on this and unlock the full potential of India’s creative ability to power India’s economic engine. ???

Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, stated, “The M&E sector witnessed a shift in demand patterns as consumers actively sought alternatives and had the time to try new things. Consumption patterns shifted and increased across online news, gaming, and entertainment. The supply side too transformed as companies took the opportunity to reinvent themselves. Every segment redefined itself across verticals by becoming medium agnostic and embedded video, audio, textual 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. ???

Key Findings:

Digital Media

In 2020 digital media grew by 6. 5% to reach INR 235 billion and is expected to grow at 22% CAGR to reach INR 425 billion by 2023. Digital subscription grew 49% in 2020 to reach INR 43. 5 billion as the pandemic and the consequent lockdown reduced fresh content on television, online sports went behind a paywall and the pandemic forced much of the population for longer periods indoors.