A good fiscal year lies ahead for India's media and entertainment industry

Amar Krishna Paul

(amarkrishnaghy@gmail.com)

There is a win-win situation for the Media and Entertainment Industry (MEI) of India. The MEI is eyeing a good fiscal year in 2023–24. A list of good news items has been published in different media reports on MEI recently.

Keeping in mind the Lok Sabha poll in 2024, budgetary allocations for various public-sector media organisations have been increased. This can be better understood from the following updates: For 2023–24, the Ministry of Information and Broadcasting (I&B) would receive Rs 4,692 crore, an increase from Rs 4,182 crore the previous year, according to Union Finance Minister Nirmala Sitharaman.

A budget of Rs 2,808.36 crore has been allocated for Prasar Bharati alone, up from Rs 2,764.51 crore in the previous fiscal year. As a part of the Broadcasting and Infrastructure Development Programme, the Finance Minister has also set aside Rs 600 crore.

In comparison to the revised expectations for the previous financial year, the Film and Television Institute of India will receive Rs 64.75 crore. Compared to the prior fiscal year, the Satyajit Ray Film and Television Institute has received Rs 95.13 crore.

Moreover, the National Film Development Corporation has received an allocation of Rs 30,515 crore. On January 3, 2023, the Credit Rating Information Services of India Limited (CRISIL) said in a financial report in Mumbai that the Indian media and entertainment sector would grow 12–14 percent to clock Rs 1.6 lakh crore in revenue in the financial year 2024.

According to the Crisil report, the revenue growth of the MEI from advertising would be led by digital platforms, followed by TV and print. Ad revenue, which accounts for 55 percent of the sector's revenue, will grow 14 percent, given its strong correlation with economic activity. Also, the general elections expected in mid-2024 will trigger an increase in ad spending in the last quarter of the next fiscal year. The remaining 45 percent would come from subscription revenue, which will grow at a slower pace of 12 percent, according to the report. While TV will continue to dominate ad revenue share given its wider reach, digital will lead in growth, rising 15–18 percent annually over the medium term. Digital 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.

After the pandemic, digital has become the second-largest segment after TV in terms of ad spending. 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. Besides, the print media will also see "healthy" ad revenue growth of 15 percent next fiscal year. However, the print media ad revenue "would still trail the pre-pandemic level by 800-1,000 basis points." That is because of the slow recovery in ad yields, especially for English editions. Other hyperlocal media, such as radio and outdoor, could reach pre-pandemic levels next fiscal year, spurred by increased commuting as well as higher ad budgets for micro, small, and medium enterprises, the key drivers for these segments. Over the course of the film exhibition, Crisil said its non-ad revenue, such as theatre collections, which were the most affected by COVID-19, may surpass pre-pandemic levels with significant growth of 30 percent in FY24 after making a strong comeback this fiscal.

In fact, media products are being consumed by audiences across demographics and various avenues such as television, films, out-of-home (OOH), radio, animation, visual effect (VFX), music, gaming, digital advertising, live events, filmed entertainment, and print. The media has always played an important role in our daily lives. While earlier it was newspapers and radio, and later television, now media is all about digital. Youtube videos, podcasts, over-the-top (OTT) media services, and digital broadcasting have garnered a lot of interest, which has also led to a wide spectrum of careers in the industry, from journalism to advertising, digital marketing, public relations, and corporate communications. This shift has made it necessary for educational institutions to relook at their media studies offerings, which will help students stay ahead in a world where media is interactive and immediate.

From a marketing management point of view, consumer behaviour quickly changes as the globe gets used to a new normal. At-home digital media like OTT platforms, which are now reaching new demographics and places, are in high demand.

At the present juncture, a few words from Markand Adhikari, Chairman and MD at Sri Adhikari Brothers (Sony TV), are noteworthy. In an analytical write-up, he writes, "The Indian media and entertainment sector is always ready to welcome candidates with open arms." It gives opportunities for resources to learn and grow, to pursue their passion, and build a career out of it! While earlier the industry was purely passion-driven, it is now seeking candidates that are industry-ready and are capable of handling all odds. Technical knowledge, strong educational background, relevant industry exposure, and soft skills would help the talent earn brownie points as this is the sector's and the hiring of such resources that possess all of these skills and can eventually prove to be an asset to the company!"

While the Central Government has set a growth target for MEI of over USD 100 billion by the year 2030, tech giant Amazon Web Services (AWS) is seeing it as a major market for investment.

That is, the MEI is one of the fastest-growing of all. We are witnessing rapid cloud adoption in all sectors, but the adoption in the M&E sector is immense. With cinema, OTT, and media growing like anything, there is no market like India today, and the demand and headroom for growth are massive. Union Secretary for Information and Broadcasting Apurva Chandra at the FICCI Frames Fast Track 2022 held in September had said that the media and entertainment industry set a target of growing the industry to more than $100 billion by the year 2030. The Ministry of Information and Broadcasting will do whatever it takes to support the M&E sector and help it grow.

Summing up, the MEI of India is one of the largest sectors in the world. It has been actively contributing to India's GDP. It is turning highly competitive. Hence, the talent that possesses the perfect amalgamation of the required competencies is preferred by the recruiters and will indeed enjoy an edge over the other resources in the market. Today, technology and digitalization have become fundamental tools for basic functioning across industries, including the MEI in India.

Despite all odds, the MEI is witnessing a good fiscal year ahead for a long list of favourable industry-driven sops and incentives from the government which are backed by the ballooning demand for media products in the subcontinent nowadays.