M&E sector likely to log 12-14% revenue growth in FY24, says Crisil

FY23 revenue growth likely at 16 per cent, ratings agency says

The Indian media and entertainment (M&E) industry may report a 12-14 per cent year-on-year growth in revenue for the financial year ended March 31,2024 (FY24) to Rs 1.6 trillion, lower than the 16 per cent revenue growth likely in FY23, ratings agency Crisil said on Monday.

Advertisement revenue, which accounts for 55 per cent of the sector’s overall revenue, will grow 14 per cent in FY24, thanks to the general elections in 2024. This is likely to trigger an increase in ad spends in the last quarter of FY24, Crisil said, which will have a positive rub-off on ad revenue growth for the year, it said. 

Subscription revenue, accounting for 45 per cent of the sector's total revenue, will grow at around 12 per cent, led by a strong recovery in films. Excluding film exhibition, revenue growth would be modest at 4-5 per cent, Crisil said.

While television 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, the ratings agency said.

"Digital has emerged as the medium of choice in the past few years amid accelerated adoption of over-the-top (OTT) platforms, e-commerce, e-learning, and online news platforms," Naveen Vaidyanathan, director, Crisil Ratings said.

“After the pandemic, digital has become the second-largest segment after TV in terms of ad spends. Together, they account for over three-fourths of the ad revenue for the M&E sector, followed by the print segment with a one-fifth share," he said. 

While print media, too, will see healthy ad revenue growth of 15 per cent year-on-year in FY24, it would still trail the pre-pandemic level by 800-1000 basis points, Crisil said.

This is because of slow recovery in ad yields (ad rates), especially for English editions. 

Other media such as radio and outdoor could reach pre-pandemic levels in FY24 spurred by increased commuting as well as higher ad budgets for micro, small and medium enterprises, Crisil said.