While the sector was 21% above its pre-pandemic levels, television, print, and radio still lagged their 2019 levels, the report added.
Digital media is anticipated to overtake television in 2024 as the largest segment in the M&E sector. In 2023, all M&E segments grew except for television.
The TV segment fell by almost 2% to Rs 69,600 crore in 2023 vs. 2022 and is expected to grow by over 3% to reach Rs 71,800 crore in 2024. The segment is expected to touch revenues of Rs 76,500 crore by 2026.
The report stated that TV advertising fell 6.5% to Rs 29,700 crore in 2023 due to a slowdown in spending by gaming and D2C brands, which impacted revenues for premium properties. The Hindi market was also soft, resulting in a 3% overall ad volume decline.
Subscription revenue increased to Rs 39,900 crore after three years of decline due to price increases, despite a two-million drop in pay TV homes. While linear viewership grew 2% over 2022, 19 to 20 million smart TVs connected to the internet each week, up from around 10 million in 2021.The total number of TV homes stood at 163 million, including 118 million pay-TV homes and 45 million free-TV homes. The monthly connected TV base reached 30 to 35 million unique sets, with an estimated 19 million weekly connections.Digital media revenue increased by 15% to Rs 65,400 crore, while digital advertising revenue reached Rs 57,600 crore, and digital subscriptions increased by over 8% to Rs 7800 crore.
The growth of digital advertising was led by e-commerce advertising and social media, with search and social media comprising 72% of total ad revenues. Between 800,000 and one million SME and long-tail advertisers spent over Rs 200 billion on digital media, primarily on performance advertising on Google, Meta, and e-commerce platforms.
The segment is estimated to reach Rs 95,500 crore by 2026, at a 13.5% CAGR. Digital advertising is expected to experience 13.5% CAGR growth to reach Rs 84,200 crore due to improved governance.
E-commerce advertising is expected to reach Rs 15,000 crore by 2026, while entertainment and sports OTT platforms are expected to reach Rs 8,000 crore to Rs 9,000 crore in advertising.
Digital subscription revenue could grow at a 13% CAGR to reach Rs 11,400 crore in 2026. By 2026, paid video subscriptions are expected to reach 138 million across 65 million households due to the bundling of multiple services.
The print segment grew by 4% to Rs 26,000 crore in 2023 on the back of growth in advertising and subscription revenues. In 2023, ad volumes increased by 2%, while ad rates grew by 2.4%. The average insertion size also increased by 4% due to increased demand for premium inventory.
The print segment is projected to reach Rs 28,800 crore by 2026, with a 3.4% CAGR. Advertising growth is expected at 4.7% CAGR due to affluent audiences and premium inventory formats, while subscription growth is expected at 0.7% CAGR due to cover price increases.
The film segment grew 15% to reach an all-time high of Rs 19,700 crore. In 2023, there were 1,796 films released in theatres, an 11% increase from the previous year.
The screen count increased by 4% but remained at 9,742, indicating that cinema remains a luxury for most Indians. In 2023, cinema hall admissions decreased from 944 million to just over 900 million, a 5% decline, with less than 100 million people visiting the halls.
Domestic theatricals reached a record of Rs 12,000 crore for the first time, largely due to an increase in ticket prices. Indian films were released in 38 countries, a significant increase from 33 in the previous year.
The segment is projected to grow at a CAGR of 7% to Rs 23,800 crore by 2026, driven by rising affluence, improved mass content, and innovative pricing, infrastructure, and distribution strategies.
In 2023, the online gaming segment in India surpassed filmed entertainment as the fourth largest segment, growing by 22% to Rs 22,000 crore, and is projected to grow at a 21% CAGR to reach Rs 38,800 crore by 2026.
Online gamers in India reached 455 million in 2023, with a predicted increase to 491 million by 2024.
The animation and VFX segments grew 6% in 2023 to reach Rs 11,400 crore in 2023. In 2023, local demand declined, resulting in a 5% contraction in Indian animation.
The segment is expected to grow at a CAGR of 17.5% by 2026 to reach Rs 18,500 crore.
In 2023, the organised live events industry grew by 20% to Rs 88,000 crore, exceeding pre-COVID levels. The segment is projected to generate Rs 14,300 crore by 2026.
OOH media revenue increased by 13% in 2023 to Rs 4160 crore, with growth expected to exceed Rs 4500 crore in 2024 and reach Rs 5430 crore by 2026.
In 2023, 88 deals were recorded, amounting to Rs 9200 crore. Only three deals exceeded Rs 5 billion, compared to 10 in 2022, and 85% of deals were less than Rs 100 crore.
New media aggregated 86% of deal volumes but only 35% of deal value. Traditional media deals in television and film comprised 65% of the deal value.
Bodhi Tree Systems’ investment in Viacom18 Media and the merger between Network18 Media and TV18 Broadcast led to TV deals.
PE/VC led the percentage of M&E deals in 2023, contributing to 41% of the total funding.
