Domestic media to overtake television in 2024: FICCI-EY

As the OTT (over-the-top) platforms continue to flourish, digital media is expected to overtake television in 2024, despite the latter being the largest segment, according to the latest report by Ficci-EY. By 2026E, digital media is expected to grow at a CAGR of 13.5% at ₹95,500 crore. In contrast to this, television is expected to grow at a CAGR of 3.2% at ₹76,600 crore.

"This growth is buoyed by a robust digital infrastructure, widespread adoption of OTT platforms, significant growth in the gaming segment, and the availability of cost-effective options for consumers. Despite this digital boom, traditional media is also experiencing steady growth and thus India is a "Linear and Digital Market" rather than "Linear or Digital Market." This resilience also serves as evidence of the enduring relevance of print, radio, out-of-home advertising, and regional television, illustrating India’s diverse media consumption habits," says Kevin Vaz, Chairman, FICCI Media and Entertainment Committee. 

The report says the country's media and entertainment industry is poised to grow at a CAGR (compound annual growth rate) of 10% to reach ₹3.08 lakh crore by 2026. The report expects the media and entertainment to grow 10.2% to reach ₹2.55 lakh crore by 2024.

In 2023, the domestic media and entertainment grew 8.1% to ₹2.32 lakh crore. In 2023, while the sector was 21% above its pre-pandemic levels, television, print and radio still lagged their 2019 levels, according to the report.

In 2023, except for television, all other segments of the media and entertainment grew. Of the ₹371 billion (₹37,100 crore), the new media (digital and online gaming) grew the most, providing ₹122 billion (₹12,200 crore) of the total growth, and consequently increased its contribution to the media and entertainment sector from 20% in 2019 to 38% in 2023. The share of traditional media (television, print, filmed entertainment, live events, OOH, music, radio) stood at 57% of M&E sector revenues in 2023, down from 76% in 2019. Experiential (outside the home and interactive) segments continued their strong growth in 2023, and consequently, online gaming, filmed entertainment, live events and OOH media segments grew at a combined 18%, contributing 48% of the total growth, according to the report.

"It has been a while since the media and entertainment (M&E) sector grew slower than Indian GDP, but that was 2023 in a nutshell! Headwinds from geopolitics, the uncertainty of war, funding scarcity and regulatory implications impacted advertising spending and reduced consumption. Yet the M&E sector grew, outpacing that of many developed countries," says Ashish Pherwani, M&E Sector Leader, Ernst & Young LLP.