According to the recent report by the rating agency CRISIL, the Indian media and entertainment (M&E) industry may log 12-14pc year-on-year increase in revenues to Rs 1.6 lakh crore in fiscal 2024, against 16 pc growth expected this fiscal.
At the same time, the ad revenue which accounts for 55 pc of the sector’s revenue, will witness a growth of 14 pc given its strong correlation with economic activity. The report also states that the general elections which are expected to take place in the mid-2024 will lead to an increase in ad spend in the last quarter of next fiscal.
Subscription revenue, accounting for the remaining 45 pc, will grow at a slower pace of 12pc, which will be backed by strong recovery in films. Excluding film exhibitions, revenue growth would be modest 4-5 pc.
At the same time print media will witness a healthy ad revenue growth of 15 pc on-year next fiscal, it would still trail the pre-pandemic level by 800-1000 basis points. This is due to the slow recovery in ad yields, especially for English editions.
CRISIL report further said that the 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, theater collections for film exhibition, which was the most affected by covid-19, may surpass pre-pandemic levels with strong growth of 30 pc 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 realizations in the near term but would bear the heat of shifting consumer preference towards digital medium in the long term.