M&E industry expected to reach Rs 2.23 trillion by 2023; Print degrown 36% in 2020 due to COVID-19
M&E industry expected to reach Rs 2.23 trillion by 2023; Print degrown 36% in 2020 due to COVID-19

The Indian Media and Entertainment (M&E) sector is expected to grow by 25 per cent in 2021 and is expected to reach Rs 1.73 trillion (USD 23.7 billion) states FICCI-EY report.

The M&E sector in India is expected to reach Rs 2.23 trillion (USD 30.6 billion) by 2023 at a CAGR of 17 per cent.

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, stated the report. The Indian Media and Entertainment sector has degrown by 24 per cent to Rs 1.38 trillion (US$19 billion) in 2020.

It stated, Print has degrown 36 per cent in 2020 due to the impact of COVID-19. Print’s revenue declines were led by a 41 per cent fall in advertising and a 24 per cent fall in circulation revenues.”

Print companies implemented significant cost reduction measures to achieve between 25 per cent and 40 per cent efficiencies, a significant portion of which can continue in the years ahead. “Many print companies started conducting digital versions of their popular IPs and entered the high-volume but lower value digital events business.”

Transformation in the print segment is expected to be in the areas of product realignment, revenue transformation, cost intelligence and digital demarcation, suggested the report. “Print will need to focus on growing reach in its existing markets through a combination of identifying new micro-markets which are underpenetrated as well as forging bundle deals with direct to consumer aggregators like television, e-commerce platforms, OTT platforms, etc.”

M&E sector continued to witness moderate deal activity, despite major disruptions brought by the COVID-19 outbreak. “Although the number of deals increased from 64 in 2019 to 77 in 2020, deal value reduced to Rs 68 billion in 2020 from Rs 101 billion in 2019. This was largely due to the absence of big-ticket deals with only two deals crossing the US$100 million threshold as compared to four such deals in 2019.”

Like in the last three years, new media contributed to majority of the deals in terms of volume. “Its share increased in terms of deal value from 37 per cent in 2019 to 92 per cent in 2020.

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Free Press Journal