Crisis: media and entertainment sector could generate 1.6 billion crowns in revenue in fiscal year 24: Crisil

The country’s media and entertainment (M&E) industry is forecast to report £1.6bn in revenue in 2023-24, with TV and print media expected to see a strong recovery in advertising income, Crisil said Thursday.

The TV industry is expected to reach £73,500 crore. income in fiscal year 24, followed by print media at 29,300 crores and digital at ₹28,700 crores, credit rating the agency said in a statement.

According to Krisil, the film segment in the next fiscal year will have an estimated market size of 25,000 crores. Its recovery will come from the normalization of operations, an increase in the average ticket price and per capita spending, and an increase in occupancy rates.

The agency said digital media will drive growth from pre-pandemic levels with the launch of 5G and cheap data that will push video consumption to help expand digital advertising and become the second largest advertising medium. Active pay-TV subscriptions will drop by 5 million between 2022 and 2024, according to Crisil. Over the past three years, Direct Access Home (DTH) and cable television companies have been losing customers due to cable cuts and the switch to DD Free Dish.

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Average revenue per user (APRU) in the TV industry has declined as new subscribers emerge from rural areas, the report said. However, clarity on the implementation of the New Tariff Order (NTO) 2.0 is expected to boost ARPU.

New NTO 2.0 guidelines released Telecom Regulatory Authority of India (TRAI) will recently help TV distribution platforms increase revenue and operating profit, the agency said.

For broadcasters, he said, a likely change in the price of bouquets and a general election in 2024 would increase subscription and advertising revenues, respectively.

The print will refund 90% of pre-pandemic revenue by the next fiscal year, Krisil said. Growth in subscription revenue for print players will be slow, he said, due to rising coating prices. The agency expects regional newspapers to recover faster than their English counterparts.

In a webinar hosted by Crisil on Thursday, Tata Play MD and CEO Harit Nagpal said inflation has an impact on the broadcast industry as TV subscriptions are viewed as a discretionary expense by consumers. He believes that the recovery will depend on lower inflation and higher incomes in rural areas.

Inox Group Chief Executive Siddharth Jain said the M&E industry needs to think long-term given the opportunities presented by the Indian market. He said the M&E industry will be a big beneficiary of the increase in per capita income in the future.

Network18 Group CFO Ramesh Damani said the broadcast industry has faced strong headwinds in the past few quarters.