: Media & entertainment revenue to touch Rs 1.6 lakh crore in 2024: CRISIL report #IndiaNEWS #Report According to CRISIL Ratings, media & entertainment ad revenue will witness digital in the lead

Media & entertainment revenue to touch Rs 1.6 lakh crore in 2024: CRISIL report #IndiaNEWS #Report
According to CRISIL Ratings, media & entertainment ad revenue will witness digital in the lead followed by TV and then print.

The Indian media and entertainment (M&E) sector may log revenue growth of 12-14% on-year to ~Rs 1. 6 lakh crore in fiscal 2024, against ~16% growth expected this fiscal.

Advertisement (ad) revenue, which accounts for ~55% of the sector’s revenue, will grow by 14% given its strong correlation with economic activity. Also, the general elections expected in mid-2024 will trigger an increase in ad spend in the last quarter of the next fiscal.

Subscription revenue, accounting for the balance of ~45%, will grow at a slower pace of ~12%, led by a strong recovery in films. Excluding film exhibitions, the revenue growth would be modest at 4-5%.

Naveen Vaidyanathan, Director, CRISIL Ratings, says, “While television (TV) will continue to dominate ad revenue share given its wider reach, digital will lead in growth, rising 15-18% annually over the medium term. It has emerged as the medium of choice in the past few years amid the accelerated adoption of over-the-top (OTT) platforms, online gaming, e-commerce, e-learning, and online news platforms. After the pandemic, digital has become the second-largest segment after TV in terms of ad spends. Together, they account for over three-fourths of the ad revenue for the M&E sector, followed by the print segment with a one-fifth share. ???

Also Read: Social Throwback 2022: The year of revenge & revival in India’s travel industry

While the print media, too, will see healthy ad revenue growth of ~15% on-year next fiscal, it would still trail the pre-pandemic level by 800-1000 basis points. That is because of the slow recovery in ad yields, especially for English editions. Other hyperlocal media such as radio and outdoor could reach pre-pandemic levels next fiscal spurred by increased commuting as well as higher ad budgets for micro, small and medium enterprises, the key drivers for these segments.

As for non-ad revenue, theatre collections for film exhibition, which was the most affected by Covid-19, may surpass pre-pandemic levels with strong growth of ~30% on-year next fiscal, after making a strong comeback this fiscal. The addition of screens amid rising occupancy will support the growth. Subscription revenue growth for TV and print would be driven by moderate improvement in realisations in the near term but would bear the heat of shifting consumer preference towards digital media in the long term.

Rakshit Kachhal, Associate Director, CRISIL Ratings, says, “Increasing digitalisation would affect TV and print subscriptions in the long run, necessitating accelerated integration of digital media into traditional segments.