The media and entertainment sector in India experienced a notable slowdown in growth, expanding by 8 percent in 2023, compared to the robust 21 percent growth recorded in 2022. The deceleration was attributed to a confluence of factors, including geopolitical uncertainties, war-related concerns, funding scarcity, and regulatory implications. These challenges affected advertising spends and diminished consumption, according to the FICCI Frames report released on March 5.
The sector registered a growth of Rs 17,300 crore, reaching a total value of Rs 23,200 crore (US$27.9 billion). While this growth was significant, it represented a stark contrast to the Rs 37,100 crore expansion witnessed in 2022. The impact of headwinds in advertising during the first half of the year was a primary contributor to the slowdown, as highlighted in the report.
Despite the slowdown, the sector was 21 percent above its pre-pandemic levels. However, television, print, and radio segments still lagged behind their 2019 levels.
Television retained its position as the largest segment, but the FICCI report predicts that digital media will surpass it in 2024. The media and entertainment sector is anticipated to grow by 10.2 percent, reaching Rs 25,500 crore by 2024. Furthermore, it is projected to maintain a compound annual growth rate (CAGR) of 10 percent, reaching Rs 30,800 crore by 2026.
In 2023, all segments in the media and entertainment sector, except for television, witnessed growth. New media, encompassing digital and online gaming, emerged as the leading contributor, accounting for Rs 12,200 crore of the total growth. The share of new media in the sector rose from 20 percent in 2019 to 38 percent in 2023.
The traditional media’s share, including television, print, filmed entertainment, live events, out of home (OOH), music, and radio, declined to 57 percent of the sector’s revenues in 2023, down from 76 percent in 2019.
Experiential segments, such as outside-the-home and interactive entertainment, demonstrated robust growth in 2023. Online gaming, filmed entertainment, live events, and OOH media segments collectively grew at an 18 percent rate, contributing 48 percent of the total growth in the sector.
