The 23rd edition of the three-day media and entertainment industry conclave FICCI Frames got underway in Mumbai on 3rd May.
Unveiling the report, Ashish Pherwani, Leader – Media and Entertainment, EY, explained that while the M&E sector is poised to grow from Rs. 2.1 lakh crore in 2022 to 2.86 lakh crore in 2025, digital would account for two-thirds of the growth.
He explained that if one added the data charges paid by consumers to access digital content, the size of the industry, which has crossed its pre-Covid levels in 2022, would be in excess of Rs. 3 lakh crores or three trillion.
Except for (linear) Television, all other segments grew in 2022, said Pherwani. Significant growth was witnessed by new media (contribution to growth was at 48 pc) and OOH (all OOH including live events and filmed entertainment) which was worst hit by the pandemic, bounced back contributing 40 pc of growth.
Of the 2022 advertising pie of Rs. 1 lakh crore, 48 pc came from digital. Of this approximately Rs.50,000 cr market, Rs.18 to Rs.20,000 crore was contributed by small and medium businesses, including on avenues like search.
Growth opportunities for TV
While everyone talks about cord cutting and the risk posed to TV by the same, Pherwani pointed to a couple of opportunities.
The number of cord cutters is set to rise to 10 million in 2025. But the number of houses yet to get a TV, which is at 150 mn in 2022 and set to come down to 139 mn in 2025, presented a huge opportunity, contended Pherwani. The situation calls for a PPP model to be put in place, he noted.
“SVOD can go to 100 mn homes with a little pricing correction,” noted the speaker, observing that the current number of 42 million was likely to plateau at 45 mn given the current pricing of offerings.
Animation and visual effects has been predicted to more than double in three years driven by the global opportunity from the present Rs.10,000 cr. This presents a huge potential for ‘Make in India’, underlined the EY executive.
Of the sector growth from 2.1 to 2.8 lakh cr in 2025, advertising is predicted to grow at 11pc, subscriptions by 5 pc and content and services by 20 percent.
(Changed effected to stats on growth of new media and OOH based on a clarification from the speaker.)