Opinion: The Landscape Of Indian Media And Entertainment Is Changing — What Stakeholders Must Do to Spark Revival

The Indian Media and Entertainment (M&E) sector reached a valuation of INR 2.5 trillion (USD 29.4 billion) in 2024, marking a 3.3% growth from the previous year. This growth rate signifies a slowdown compared to the 8.3% increase observed in 2023, reflecting shifting consumer behaviours and structural changes within the industry .

Key Sectoral Developments

Digital Media Ascendancy

Digital media has emerged as the largest segment, contributing 32% to the overall M&E revenues. It experienced a 17% growth, reaching INR 802 billion, surpassing traditional television for the first time .

Advertising vs. Subscription Revenues

While advertising revenues saw an 8.1% increase, driven by digital platforms and premium Out-of-Home (OOH) media, subscription revenues declined by 2% across TV, print, film, and online gaming segments .

Segmental Performance

  • Television: Continued to experience a decline, with a reduction in both advertising and subscription revenues.
  • Print: Maintained stability in advertising but faced challenges in subscription growth.
  • Films and Music: Underperformed, highlighting the critical role of compelling content in driving success.
  • Animation & VFX: Witnessed a downturn, partly due to reduced outsourcing from international markets.
  • Gaming: Faced headwinds due to regulatory changes, including the imposition of a 28% Goods and Services Tax (GST), impacting net revenues.

Consumer Behaviour and Content Consumption

The consumption patterns are increasingly favoring short-form, mobile-friendly content, with platforms like YouTube benefiting from passive consumption habits. The traditional dichotomy of "lean-back" (TV) and "lean-forward" (digital) viewing experiences is blurring, necessitating content strategies that cater to diverse preferences.

Infrastructure And Accessibility

Despite the digital surge, traditional media infrastructure remains significant. The following figures underscore the continued relevance of traditional media platforms in India's diverse market landscape:

  • Cable TV: Approximately 60 million connections.
  • Direct-to-Home (DTH) and Headend-in-the-Sky (HITS): Around 50 million connections.
  • Free-to-Air TV: Connecting about 48 million households.
  • Wired Broadband: Serving approximately 46 million users.

Strategies for Sectoral Revival

To navigate the evolving landscape, stakeholders in the M&E sector should consider the following strategies:

1. Investment in Quality Content: Prioritise the creation of compelling, high-quality content across genres to attract and retain audiences.

2. Diversification of Revenue Streams: Explore alternative monetisation models, including subscription-based services, pay-per-view, and hybrid models combining advertising and subscriptions.

3. Leveraging Technology: Embrace technological advancements to enhance content delivery, personalisation, and user engagement.

4. Regulatory Engagement: Collaborate with policymakers to address regulatory challenges, such as taxation and content regulation, ensuring a conducive environment for growth.

5. Audience-Centric Approach: Conduct in-depth audience analysis to tailor content and distribution strategies that align with evolving consumer preferences.

The Indian M&E sector stands at a pivotal juncture, characterised by rapid digital transformation and changing consumer dynamics. By adopting innovative strategies, investing in quality content, and fostering collaborative efforts among stakeholders, the industry can navigate current challenges and unlock new avenues for sustainable growth.

Raj Kumar Varier is a seasoned legal professional currently engaged in independent practice, with a specialized focus on the Telecom, Media, Technology (TMT) and Gaming sectors. He brings with him over two and a half decades of rich and diverse experience in the TMT domain, having advised leading organizations across regulatory, transactional, and policy matters.

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