Indian M&E sector recovered 16.4% to reach Rs 1.61 trillion in 2021: EY-FICCI report

Expected to exceed pre-pandemic levels in 2022

e4m by exchange4media Staff
Published: Mar 21, 2022 5:58 PM  | 7 min read
me

According to the EY-FICCI report Tuning into consumer - Indian M&E rebounds with a customer-centric approach launched today, the Indian Media and Entertainment (M&E) sector grew 16.4% INR1.61 trillion (US$21.5 billion) in 2021. Assuming no further impact of the pandemic, it is expected to grow 17% in 2022 to reach INR1.89 trillion (US$25.2 billion) and recover its 2019 pre-pandemic levels, then grow at a CAGR of 11% to reach INR2.32 trillion (US$30.9 billion) by 2024. 

Digital media has firmly established itself as the second-largest segment. It grew by INR68 billion in 2021. Share of traditional media stood at 68% of sector revenues.

Ashish Pherwani, EY India Media & Entertainment Leader, stated, “India has always been a different kind of media and entertainment market. High on volume and low on ARPU, yet up top with the rest on technology and ahead of the pack when it comes to digital adoption.” He added “Technology has led to the democratization of M&E in India – content is now created for the people, by the people and of the people. The flow of consumer data provides rich and real-time insights on what the consumer likes and dislikes, when where and how it is being consumed, and whether the price-points are appropriate.”

Sanjay Gupta, Chairman, FICCI Media and Entertainment Committee stated, “The massive disruption of COVID-19 in 2020 was a seminal event for all industries and more so for M&E as more people relied on it to educate, inform and comfort them during these challenging and complex times. I am pleased to see that, in 2021, the industry and consumers have embraced the choices that have emerged wholeheartedly, and a recovery is well underway with digital serving a pivotal role in it. In particular, the growing animation and VFX segment sets India up well to become the preferred content creator for studios globally.”  

Jyoti Deshpande, Co-Chairman, FICCI Media and Entertainment Committee, said “India is back post pandemic with a 16% growth in the M&E sector, helping us reach INR1.6 Trillion. After a difficult year and half, we have adapted and evolved with new ways of storytelling and innovation at every step. The creator market has exploded, we have hyper local content meeting cross border collaborations, all of it being leveraged by India's unique 'and' market where the TV, Digital, Print, Radio and OOH not only coexist but complement each other. It's an exciting time in the media & entertainment industry and I'm eager to see what new horizons we uncover.”

Advertising to reach INR1 trillion by 2024:

In 2021, when India’s nominal GDP grew 19%, advertising growth outperformed and grew 25%. The highest growth was in television advertising of INR62 billion, followed by digital advertising of INR55 billion and then of INR29 billion from a resilient print. By 2024, India’s advertising market should reach INR1 lakh crores (INR1 trillion).

Digital infrastructure – towards a billion screens by 2024:

India is getting connected – it now has 795 million broadband connections, over 500 million smartphones and 10 million connected TVs, apart from170 million active TV connections. 390 million Indians played online games, 150 billion streams of online music were consumed, 40 million Indian households paid for 80 million online video subscriptions and 400 million subscribers consumed bundled content in 2021. We expect the number of screens in India to reach 1 billion by 2024-25.

The great Indian content factory goes global:

India is amongst the largest content producers in the world – with 150k hours of TV content, 2,500 hours of premium OTT content and 2,000 hours of filmed content produced in 2021. India has over 950 animation and VFX studios, 185k electronic artists and 139 universities – and is fast becoming the content back office of the world.

There were over 100 M&E mergers and acquisitions in 2021:

The massive pace of change in M&E led to over 100 deals in 2021 – 86% of which were in new media and gaming. In 2021, many internet companies were listed on Indian stock exchanges. Unicorns in the M&E sector are expected to enter capital markets through a listing on Indian stock exchanges or through a SPAC listing in the United States in the next 2-3 years.

M&E sector will reach INR2.32 trillion by 2024:

The Indian M&E sector is expected to grow at a CAGR of 13% and add INR707 billion in three years to reach INR2.32 trillion by 2024. The key contributors to this growth will be digital, films and television (together adding 65% of the growth), followed by animation and VFX (14%) and online gaming (7%). 

Segmental findings

  • Television – Television advertising grew 25% to end 2021 just 2% short of 2019 levels. Subscription revenue continued to fall for the second year in a row; experiencing a 6.2% de-growth due to a reduction in pay TV homes and a fall in consumer-end ARPUs. Connected TV sets, however, increased to 10 million
  • Digital advertising – Digital advertising grew 29% to reach INR246 billion. In addition, advertising by SME and long-tail advertisers reached INR117 billion. Included in these revenues is advertising earned by e-commerce platforms of INR55 billion, which is now 16% of total digital advertising
  • Digital subscription – Digital subscription also grew 29% to reach INR56 billion. 80 million paid video subscriptions across almost 40 million Indian households generated INR54 billion, an amount which is around 50% of broadcasters’ share of TV subscription revenues. Due to a plethora of free audio options, just three million consumers bought music subscriptions, generating INR1.6 billion
  • Print – Advertising revenues grew 24% in 2021 as supply chains opened and circulation recovered.  Print provides access to a large base of top-end consumers and remains an integral part of marketers’ brand launch and impact campaigns. Subscription revenues saw a growth of 12% on the back of recovery in direct to home and newsstand sales as well as rising cover prices. Print should continue on its growth trajectory in 2022 driven by hyper-local and regional news products
  • Online gaming – Despite people going back to work as the effects of the pandemic receded, and regulatory uncertainty, the online gaming segment grew 28% in 2021 to reach INR101 billion. Online gamers grew 8% from 360 million in 2020 to 390 million. Real money gaming comprised over 70% of segment revenues. The segment will continue to grow and reach 500 million gamers by 2025 to become the fourth largest segment of the Indian M&E sector. 
  • Film – Despite capacity restrictions during the year, over 750 films were released in 2021, as compared to just 441 releases in 2020. Over 100 films released directly on streaming platforms, too. The segment grew 28% but remained at half its 2019 levels. The segment should recover to pre-pandemic levels by 2023
  • Animation and VFX – At 57%, it was the fastest growing segment in 2021, as content production resumed, service exports increased, and the sector adopted virtual production
  • Live events – The segment grew 20% over an extremely depleted base, primarily due to the relaxation of event curbs in a few states and increase in vaccination rates; however, revenues were just 40% of 2019 revenues. It should recover its 2019 levels by end 2024
  • OOH – OOH media grew 27% but remained at 50% of 2019 levels. Capacity utilization improved towards the end of 2021, but rates remained challenged.  We expect it to regain 2019 levels not before 2024 
  • Music – The Indian music segment grew by 24% in 2021. 90% of revenues were earned through digital means, though most of it was advertising led, there being around only 3 million paying subscribers due to the presence of a plethora of free listening alternatives
  • Radio – Ad volumes recovered 29% over 2020 but are still 6% behind 2019 volumes. Ad rates fell 13% on average and recovery will only be seen once daily travel resumes fully and the retail sector recovers.  Many radio companies are looking at alternate revenue streams to make good the differential

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Rajya Sabha MP Dr Sasmit Patra joins enba jury panel

Dr Patra is currently the National Spokesperson and Media Coordinator of Biju Janata Dal

By exchange4media Staff | Mar 23, 2023 9:04 AM   |   1 min read

sasmit patra

Rajya Sabha MP Dr Sasmit Patra has joined the exchange4media News Broadcasting Awards (enba) jury panel. Patra is the member of the Parliament of India representing Odisha in the Rajya Sabha, the upper house since June 28, 2019. He is currently the National Spokesperson and Media Coordinator of Biju Janata Dal.

Dr Patra has a rich experience of academia as well as public policy and governance. Apart from political work and social work, he comes with 17 years of work experience in academics, business research, industry and corporate sector, UNDP-Government of Odisha project.

He was the Dean of XAVIER-EMLYON Business School, the first Indo-French business school in India, a joint collaboration between Xavier University, Bhubaneswar and Emlyon Business School, France. An academic by profession, he has taught courses in the areas of organisational behaviour and human resource management. He also has experience of working in industry.

enba was formulated by the exchange4media group in 2008 with the objective of recognizing the best in television news. The awards honour industry leaders who are responsible for shaping the future of television broadcasting in India. This year, enba is in its 15th edition. The grand jury will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

 

 

 

 

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Havas Media Group India wins media mandate for V-Guard

The account will be handled by the agency’s Bengaluru team

By exchange4media Staff | Mar 17, 2023 8:56 AM   |   2 min read

havas

Havas Media Group India (HMGI) has recently won the integrated media mandate of V-Guard Industries Limited, a consumer electrical and electronics company.

The mandate was won following a highly competitive multi-agency pitch and includes Digital, TV, Print, Radio, OOH, Cinema duties. The account will be handled by the agency’s Bengaluru team lead by Saurabh Jain, Managing Partner – South, Havas Media Group India alongside the able leadership of Uday Mohan, President and Chief Client Officer, Havas Media Group India.

Havas Media Group India and V-Guard will work closely to develop and implement an integrated media strategy that will effectively reach and engage with their target audience. The expertise of Havas Media Group India will be invaluable to V-Guard in their expansion plans as their brand and reach continues to grow, the agency said.

Nandagopal Nair, Vice President & Head – Brand & Communications, V-Guard Industries Limited, said, "As a brand, we have always believed in consumer centricity. Today, the consumer purchase journey has become even more complex with multiple lines zigzagging about to move consumers from discovery to the final purchase. We were looking for a media partner who will navigate this complexity, work closely with the brand, align the defined media objectives to business and help achieve the desired outcomes. In Havas we found a partner who demonstrated the right strategic intent backed by a coherent, well-defined approach to deliver to the objectives. Would also like to thank Deloitte (Spatial Access) who partnered with us in the agency selection process."

Commenting on the win, Mohit Joshi, CEO, Havas Media Group India, said, "We are delighted to partner with V-Guard Industries, an established brand in the consumer electrical and electronics segment. Havas Media Group India is known for its innovative and data-driven approach to meaningful media solutions, and we are confident that our expertise will help V-Guard achieve their business objectives. We are looking forward to working together to develop a strong and effective media strategy that will drive their brand awareness and engagement."

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Filmmaker Madhur Bhandarkar to be part of enba jury panel

Bhandarkar is a renowned Indian director known for his socially conscious and female-centric movies

By exchange4media Staff | Mar 17, 2023 8:09 AM   |   2 min read

madhur bhandarkar

Madhur Bhandarkar, Indian film director, script writer and producer, has joined the exchange4media News Broadcasting Awards (enba) jury panel. In 2016, Bhandarkar was honoured with the Padma Shri, the fourth highest civilian honour, by the Government of India.

Bhandarkar is a famous name in the film industry. His drama film Chandni Bar (2001) won him the National Film Award for Best Film on Social Issues. He was also honoured with the National Film Awards for the Best Feature Film and Best Director for Page 3 (2005) and Traffic Signal (2007) respectively. Also, the drama film Fashion (2008) garnered him several accolades including National Film Award, Filmfare Awards nominations for Best Director and Best Screenplay.

He was conferred PL Deshpande Award (Zenith Asia Award) for significantly shaping the film making culture in his unique works. He is known as the 'the Film Maker of the First Decade of the 21st Century'. In November 2010, the National Film Archive of India (NFAI) announced to preserve all the films of Madhur Bhandarkar. With this, Chandni Bar, Page-3, Corporate, Traffic Signal, Fashion and Jail found space in Government's Archival data for Indian films.

The exchange4media Group formulated enba in 2008 with the objective of recognizing the best in television news, and to reward industry leaders who are responsible for shaping the future of television broadcasting in India. This year, enba is in its 15th edition. The grand jury this time will be led by Sunil Arora, a senior bureaucrat and former Election Commissioner of India.

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Amul MD Jayen Mehta joins enba jury panel

Mehta joined Amul in 1991 and has held several top positions in the company

By exchange4media Staff | Mar 17, 2023 8:04 AM   |   1 min read

jayenmehta

Jayen Mehta, Managing Director of Amul, has joined the enba jury panel.

Earlier COO, he succeeded RS Sodhi as Managing Director in January.

Mehta joined Amul in 1991 and has served as the brand manager, group product manager and general manager of the company. He has also been the MD in-charge of Amul Dairy, Anand in 2018.

Mehta is a gold medalist from Sardar Patel University and is an alumnus of the Institute of Rural Management, Anand, Gujarat.

The enba jury this year will be led by Sunil Arora, a senior bureaucrat, and former Election Commissioner of India.

In the last editions, the enba jury was led by Sh. Harivansh Narayan Singh – Deputy Chairman, Rajya Sabha, Dr. Kiran Karnik – Former President – Nasscom, Dr. Nasim Zaidi - Former Chief Election Commissioner of India, S.Y. Quraishi – Former Chief Election Commissioner of India, N. Ram – Chairman, Kasturi & Sons Ltd., Former Editor–in-chief The Hindu and Group Newspapers, Sanjay Gupta – Managing Director – Star India.

exchange4media formulated enba in 2008 with the objective of recognizing the best in television news, and to reward industry leaders who are responsible for shaping the future of television broadcasting in India.

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Manja wins integrated digital creative mandate for Taco Bell

The account was earlier with BBH India

By Tanzila Shaikh | Mar 16, 2023 4:33 PM   |   1 min read

Manja
Sources have confirmed to exchange4media that Manja has won the integrated digital creative mandate for Taco Bell, the world’s largest Mexican-Inspired quick-service restaurant chain. The creative agency was launched by BBH's Arvind Krishnan and Leo Burnett's Prajota Guha Thakurta in July 2022.
The account was previously with BBH India, which was awarded the mandate in 2019. Manja will be the agency on record from now on.

Taco Bell, which has been leveraging influencer marketing, collaborated with youth icon and gaming enthusiast Rannvijay Singha in 2021 for the #CravingMeetsGaming experience through a virtual Game Session in the racing game Forza Horizon 4. In the same year, they also did #ISeeATaco campaign as well. 

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Former Rajya Sabha MP Syed Zafar Islam joins enba jury

He is the national spokesperson for the BJP and a former member of the upper house of parliament from the Uttar Pradesh constituency

By exchange4media Staff | Mar 16, 2023 8:40 AM   |   1 min read

enba

Syed Zafar Islam former Rajya Sabha MP, and politician with the Bharatiya Janata Party has joined the enba Jury Panel.

He is the national spokesperson for the BJP and a former member of the upper house of parliament from the Uttar Pradesh constituency. He has previously been an investment banker and managing director at Deutsche Bank.

He was appointed as the non-official independent director of Air India 2017. Zafar Islam frequently writes opinion pieces on economic and political affairs in national publications like the Hindustan Times.

The enba jury this year will be led by Sunil Arora, a senior bureaucrat, and former Election Commissioner of India.

In the last editions, the ENBA jury was led by Sh. Harivansh Narayan Singh – Deputy Chairman, Rajya Sabha, Dr. Kiran Karnik – Former President – Nasscom, Dr. Nasim Zaidi - Former Chief Election Commissioner of India, S.Y. Quraishi – Former Chief Election Commissioner of India, N. Ram – Chairman, Kasturi & Sons Ltd., Former Editor–in-chief The Hindu and Group Newspapers, Sanjay Gupta – Managing Director – Star India.

exchange4media formulated enba in 2008 with the objective of recognizing the best in television news, and to reward industry leaders who are responsible for shaping the future of television broadcasting in India.

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Oscars 2023: RRR, The Elephant Whisperers win big for India

'Naatu Naatu' clinched a win for 'Original Song', and 'The Elephant Whisperers' bagged the golden statuette for 'Best Documentary Short Film' at the 95th Academy Awards

By exchange4media Staff | Mar 13, 2023 9:00 AM   |   1 min read

elephant whisperers

India has bagged its first Oscars for 2023 for the Netflix documentary movie ‘The Elephant Whisperers’ at the 95th Academy Awards for 'Best Documentary Short Film'. Kartiki Gonsalves and Guneet Monga the director-producer team behind the film have dedicated the win to India. SS Rajamouli's period action blockbuster 'RRR' also clinched a win for Original Song "Naatu Naatu."

The 40-minute documentary is centred on the bond between animals and humans and tells the story of a Tamil couple named Bomman and Belli who bring up an orphaned elephant named Raghu. The film reflects upon the struggles of the couple who fight against all odds to raise the elephant into a healthy juvenile. The film is set in the Mudumalai National Park in Tamil Nadu.

The Telugu hit song was competing with "Applause" from "Tell It Like a Woman", "Hold My Hand" from "Top Gun: Maverick", "Lift Me Up" from "Black Panther: Wakanda Forever" and "This is a Life" from "Everything Everywhere all at Once."

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