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The media and entertainment industry could generate 1.6 L crore in revenue in FY24, according to Crisil.

The country’s media and entertainment (M&E) industry is projected to report revenues of ₹1.6 lakh crore in 2023-24 with television and print media expected to see a strong recovery in advertising revenues, Crisil said on Thursday.

The TV industry is expected to hit ₹73,500 crore in revenue in FY24, followed by print media at ₹29,300 crore and digital at ₹28,700 crore, the credit rating agency said in a report.

The film exhibition segment will have an estimated market size of ₹25,000 crore next fiscal, Crisil said. Its recovery will be driven by normalising operations, higher average ticket price and spend per head, and improvement in occupancy levels.

Digital media will drive the growth over pre-pandemic levels with 5G launch and cheap data pushing video consumption to help expand the digital ad pie and become the second-biggest advertising medium, the agency said.

According to Crisil, active paid TV subscription will fall by 5 million between 2022 and 2024. Direct-to-home (DTH) and cable companies have been losing customers in the last three years due to cord-cutting and movement to DD Free Dish.

The average revenue per user (APRU) for the TV industry has seen a decline since new subscriber additions are happening in rural areas, it said. However, clarity over the new tariff order (NTO) 2.0 implementation is expected to lift the ARPU.

New NTO 2.0 guidelines issued by the Telecom Regulatory Authority of India (TRAI) recently will help TV distribution platforms to improve revenue and operating profits, the agency said.

For TV broadcasters, the likely change in bouquet pricing and the general elections in 2024 will drive up subscription and ad revenues, respectively, it said.

Print, Crisil said, will recoup 90% of pre-pandemic revenue by the next fiscal. Subscription revenue growth will be slow for print players due to the hike in cover prices, it said. The agency expects regional newspapers to recover faster than their English counterparts.

In a webinar organised by Crisil on Thursday, Tata Play MD and CEO Harit Nagpal said inflation has an impact on the broadcast industry as TV subscriptions are seen as discretionary spending by consumers. He felt the recovery will depend on inflation tapering down and the growth in rural incomes.

Inox Group executive director Siddharth Jain said the M&E industry should think long term considering the opportunity that the Indian market presents. He said the M&E industry will be a big beneficiary of an increase in per capita income going forward.



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