According to the report, ad revenue recovered to just 6% below its 2019 level, clocking in at Rs 74,600 crore in 2021.

India’s media and entertainment (M&E) sector grew 16.4% to Rs 1.61 lakh crore in 2021, as opposed to 2020, according to the latest report from FICCI-EY. Titled ‘Aligning with the consumer: Indian M&E recovers with a customer-centric approach’, the report states that despite the recovery, the M&E sector has not yet reached pre-pandemic levels and has recorded an 11% decline compared to 2019 due to the second wave of COVID-19 affecting the April-June quarter. However, the M&E sector is estimated to grow by 17% to Rs 1.89 lakh crore and recover to its 2019 levels in 2022 and grow further at a CAGR of 11% to Rs 2.32 lakh crore in 2024.

“The M&E sector had shrunk by 24% in 2020 but recovered with growth of 16% to reach Rs 1.6 trillion (lakh crore), just 11% less than the pre-pandemic numbers of 2019. With the exception of cinema advertising, all segments of the M&E sector grew in 2021, although experience segments – such as events and movies – are not yet back to normal. In addition, the industry itself should reach and surpass its pre-pandemic levels by 2022,” said Sanjay Gupta, chair of the FICCI Media and Entertainment Committee, and Jyoti Deshpande, co-chair of the FICCI Media and Entertainment Committee.

In terms of ad revenue, the ads recovered to just 6% below the 2019 level, clocking in at Rs 74,600 crore. Of this, while digital advertising grew to Rs 5,500 crore, the highest growth was recorded by television advertising clocking at Rs 6,200 crore followed by print growth of Rs 2,900 crore. Television, print and digital together accounted for 95% of total ad spend, with television ruling the space at 42%, followed by digital and print at 33% and 20%, respectively.

According to the report, television advertising grew by 25% in 2021, a two percent decline from 2019 levels, while television subscription revenues continued to decline for the second year in a row, resulting in a 6.2% decline. from a six million reduction in pay-TV. residential properties and a decline in ARPUs at the end of the consumer market. Interestingly, the connected TV sets increased to 10 million. In addition, smart connected TVs will exceed 40 million by 2025, ending the monopoly of broadcasters on the big screen and leading to about 30% of the content consumed on big screens, social, gaming, digital, etc.

“India has always been a different kind of media and entertainment market. High in volume and low on ARPU, but with technology above the rest and at the forefront of digital adoption,” said Ashish Pherwani, M&E Sector Leader, Ernst & Young LLP.

Digital advertising grew 29% to Rs 24,600 crore in 2021, with ads by SME and long-tail advertisers accounting for Rs 11,700 crore. E-commerce platforms achieved Rs 5,500 crore in advertising revenue, accounting for 16% of total digital advertising. According to the report, the digital subscription also grew 29% to Rs 5,600 crore with nearly 80 million paid video subscriptions across nearly 40 million Indian households generating Rs 5,400 crore, which is about 50% of the broadcasters’ share of the income from TV subscriptions.

Meanwhile, print advertising revenue grew 24% in 2021 as advertising rates remained subdued. Subscription revenues were up 12% thanks to the recovery of direct-to-home and single copy sales and rising cover prices.

The sunrise sector of online gaming recorded a 28% increase to Rs 10,100 crore in 2021, despite people returning to work as the effects of the pandemic eased, and regulatory uncertainty. Online gamers grew by 8% from 360 million in 2020 to 390 million. Real money gambling comprised over 70% of segment revenue.

According to the report, the share of regional content consumption will increase by 60% in 2025 of television consumption from about 55% in 2020 and from 30% to 2020 to about 50% of OTT consumption. This will increase the need for dubbing, titles, formatting, etc. services. Therefore, the ad rates of regional media will increase to be indexed with the ad rates of regional markets.

Also Read: Lay’s Unveils Its New Ad Campaign With Ranbir Kapoor And Radhika Madan

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This post M&E sector up 16% to Rs 1.61 lakh crore in 2021 : FICCI-EY Report was original published at “https://www.financialexpress.com/brandwagon/me-sector-rose-16-to-rs-1-61-lakh-crore-in-2021-ficci-ey-report/2466953/”

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