Revenue for media and entertainment to grow double-digit in FY24

NEW DELHI: The Indian media and entertainment sector may log a revenue growth of 12-14 per cent on a yearly basis to about Rs 1.6 lakh crore during the financial year 2023-24 (April-March), against the expected 16 per cent growth in the current financial year ending March 2023, Crisil Ratings said.

Advertisement revenue, which accounts for about 55 per cent of the sector's revenue, is expected to grow 14 per cent given its strong correlation with economic activity.

"Also, the general elections expected in mid-2024 will trigger an increase in ad spend in the last quarter of next fiscal," the ratings agency said in a report earlier this week.

Subscription revenue, accounting for the balance 45 per cent, may grow at a relatively slower pace of 12 per cent. "While television (TV) will continue to dominate ad revenue share given its wider reach, digital will lead in growth, rising 15-18 per cent annually over the medium term.

It has emerged as the medium of choice in the past few years amid accelerated adoption of over-the-top (OTT) platforms, online gaming, e-commerce, e-learning, and online news platforms," said Naveen Vaidyanathan, Director, of CRISIL Ratings. Vaidyanathan added that digital has become the second-largest segment after TV in terms of ad spending, and together, they account for over three-fourths of the ad revenue for the media and entertainment sector.

The print segment follows with a one-fifth share. The print media, too, is expected to see healthy ad revenue growth at 15 per cent in 2023-24, though it would still trail the pre-pandemic level by 800-1,000 basis points (100 basis points = 1 percentage points), the ratings agency said.