EY-FICCI Report
EY-FICCI Report
EY-FICCI Report
March 2024
Media & entertainment
Alia Bhatt
Actor, Producer
FORE
‘
3
WORD
‘
Media & entertainment
FORE
forward-looking policy and regulatory regimes. This can position India as the content
hub of the world - bringing its unique stories, rich culture, and diverse perspectives to
the global stage.
‘
5
A year of change.
A time to #reinvent.
It has been a while since the media and entertainment (M&E) sector grew
slower than Indian GDP, but that was 2023 in a nutshell! Headwinds from
geopolitics, the uncertainty of war, a funding scarcity and regulatory
implications impacted advertising spends and reduced consumption. Yet the
M&E sector grew, outpacing that of many developed countries.
Consumption trends continued to favor digital media, social media, video and
audio streaming and online gaming. Yet traditional media – regional television,
print, radio, OOH and cinema – also grew and were profitable.
Although phone prices increased, India added over 30 million more
smartphone users. Airfares increased, yet so did the uptake of travel and
events. Ticket prices went up, but India sold over 900 million movie tickets
and ticketed events had their best year, ever.
I believe we are at that “inflection point” we have been speaking of since
2018, when digital finally overtakes traditional media. In 2023, new media
comprised 52% of total advertising revenues, and digital subscription, if
corresponding data charges are included, would also comprise a majority of
subscription revenues. 70% of the M&E sector’s growth in 2023 was driven by
new media.
This report aims to understand the quality of change and tries to paint a
Ashish Pherwani picture of the next three years. We have included over a hundred ideas
for businesses to consider, taking advantage of the many trends and
M&E Sector Leader opportunities we expect to see.
Ernst & Young LLP
We hope you enjoy reading this report as much as we enjoyed putting it
together for you. We are certain you would find this report to be insightful.
WORD
M&E sector
Media & entertainment Segmental
overview trends
08 M&E sector 2023: key trends 30 Television
86 Print
166 Music
178 Radio
188 Sports
198 Content
CONT
Enabling About this 7
environment report
224 Indian economy 282 Glossary
Original research
98 News consumption survey
ENTS
Media & entertainment
M&E sector
overview
Catch the headlines with
AI anchor Sana
9
Media & entertainment
Key trends
Indian M&E sector grew over 8% in 2023 to cross INR2.3 trillion
CAGR
2019 2022 2023 2024E 2026E
2023-2026
Television 787 709 696 718 766 3.2%
Music 15 22 24 28 37 14.7%
Radio 31 21 23 24 27 6.6%
► The Indian M&E sector continued its growth trajectory; ► While television remained the largest segment, we
it grew by INR173 billion (8.1%) to reach INR2.32 trillion expect digital media to overtake it in 2024
(US$27.9 billion)
► We expect the M&E sector to grow 10.2% to reach
► While the sector was 21% above its pre-pandemic levels, INR2.55 trillion by 2024, then grow at a CAGR of 10%
television, print and radio still lagged their 2019 levels to reach INR3.08 trillion by 2026
11
100 25%
83
80 20%
Growth in INR billion
60 15%
39
40 10%
24
Television
15
20 7 10 5%
2 2 5
- 0%
Music
Radio
Live events
Filmed entertainment
Online gaming
Digital media
-20 -13 -5%
► Except for television, all M&E segments grew in 2023 ► The share of traditional media (television, print, filmed
entertainment, live events, OOH, music, radio) stood at
► The growth of INR173 billion was half of the INR371
57% of M&E sector revenues in 2023, down from 76%
billion growth that took place in 2022, mainly due to
in 2019
headwinds in advertising during the first half of the year
► Experiential (outside the home and interactive)
► New media (digital and online gaming) grew the most,
segments continued their strong growth in 2023, and
providing INR122 billion of the total growth, and
consequently, online gaming, filmed entertainment, live
consequently, increased its contribution to the M&E
events and OOH media segments grew at a combined
sector from 20% in 2019 to 38% in 2023
18%, contributing 48% of the total growth
Media & entertainment
EY estimates
► Television: Television advertising fell 6.5% due to a ► Online gaming: The segment’s growth slowed to 22%
slowdown in spending by gaming and D2C brands, in 2023 to reach INR220 billion. It overtook filmed
which impacted revenues for premium properties. The entertainment to become the fourth largest segment.
HSM market was also soft, resulting in a 3% overall There were over 450 million online gamers in India,
ad volume de-growth. Subscription revenue grew of which around 100 million played daily. We estimate
after three years of fall on the back of price increases, over 90 million gamers paid to play; real money gaming
though pay TV homes fell by two million. While linear comprised 83% of segment revenues. Impact of a
viewership grew 2% over 2022, 19 to 20 million smart higher GST levy was largely absorbed by larger players,
TVs connected to the internet each week, up from impacting margins, but protecting growth
around 10 million in 2021
► Film: The segment grew 14% to reach INR197 billion.
► Digital advertising: Digital advertising grew 15% Over 1,796 films were released in 2023, and theatrical
to reach INR576 billion, or 51% of total advertising revenues reached an all-time high of INR120 billion.
revenues. Included in this is advertising by SME Number of screens grew 4% and fewer films released
and long-tail advertisers of over INR200 billion and directly on digital platforms. 339 Indian films were
advertising earned by e-commerce platforms of INR86 released overseas
billion
► Animation and VFX: The Hollywood writers’ strike
► Digital subscription: Digital subscription grew 9% to impact global supply chains, and consequently, the
reach INR78 billion. This was a third of 2022’s 27% segment grew just 6% in 2023. Potential mergers and
growth, as premium cricket properties were moved falling ad revenues also reduced the slate of animated
in front of paywalls. Paid video subscriptions reduced content produced for broadcast in India. A revival in
by two million in 2023 to 97 million, across 43 million demand in the second half of the year led to growth,
households in India. Paid music subscriptions grew boosted by the trend of using more VFX in Indian
from 5 million to 8 million, generating INR3 billion while content
online news subscriptions generated INR2 billion
► Live events: The organized segment grew 20% to
► Print: Bucking the global trend, print continued to finally exceed its pre-pandemic levels. Growth was
thrive in India. Advertising revenues grew 4% in 2023, driven by government events, personal events and
with a notable growth in premium ad formats, as print weddings, and ticketed events, including several
remained a “go-to” medium for more affluent and non- international formats
metro audiences. Subscription revenues grew 3% on
the back of rising cover prices. Digital revenues were
insignificant for most print companies
13
► OOH: OOH media grew 13% in 2023 and crossed its ► Radio: Radio segment revenues grew 10% in 2023
2019 levels. Premium properties and locations led the to INR23 billion on the back of more retail and local
growth. Active digital OOH screens crossed 100,000 advertising, and alternate revenue streams. Ad volumes
and contributed 9% of total segment revenues increased by 19% in 2023 as compared to the previous
year, though ad rates remained below their 2019 levels
► Music: The Indian music segment grew by 10% to reach
INR24 billion in 2023, slower than previous years as
certain music OTT platforms went pay and stopped
or reduced their free services. 87% of revenues were
earned through digital means, though most of it was
advertising led on YouTube, there being around only 8
million paying subscribers despite music streaming’s
reach of 185 million
Advertising
I. Advertising growth lagged Indian GDP growth
35%
30%
25%
20%
15%
9% 8%
10% 7%
5%
0%
2021 2022 2023
Nominal GDP (% growth, y-o-y) Advertising revenues (% growth, y-o-y) M&E sector (% growth, y-o-y)
Nominal GDP is for financial years | GDP data for 2023 is as per advance estimates released by MoSPI on 6 January 2024 for FY24
► The slowing down of India’s nominal GDP growth to ► In addition, advertising was impacted by a ban on
9% in 2023 after two years of double-digit increases certain large and high-yield categories like gaming and
impacted advertising, which grew just 7% betting, and a slowdown in investments in D2C brands
► Globally, too, ad growth was 6% compared to global ► Nominal GDP growth is expected to be 10.5% for
nominal GDP growth of 9.9% FY2025 (2024)1 and advertising is expected to outpace
that based on past trends
https://www.moneycontrol.com/news/business/budget/fy25-nominal-gdp-growth-assumed-at-10-5-announces-fm-in-budget-12131381.html
1
Media & entertainment
► Traditional media advertising was flat, while new media ► Digital media comprised 51% of total ad spends, up
drove the growth in advertising in 2023 from 31% pre-pandemic, and contributed the highest
share of advertising in India
► New media advertising contributed 52% of the total
advertising, and 105% of the absolute advertising ► TV comprised 26% of ad revenues, down from 36% in
growth in 2023 2019
► Advertising is now 0.33% of India’s GDP2, much lower ► Together, national media [television + new media]
than developed large markets, which are all between contributed 78% of all advertising spends, while local
0.6% to 1% media [print + OOH + radio + cinema] comprised the
balance 22%
Ad% to GDP
1.0%
0.9%
0.6% 0.6%
0.3%
EY estimates using IMF data, World Economic Outlook, MoSPI, GroupM TYNY December 2023
2
15
3% Print
Segment 2021 2022 2023 Film 8%
Television 407 392 399
Online gaming 116 170 208 Television 16%
Film 92 167 189
Print 76 80 82 54% Digital
Digital 56 72 78
Total 748 881 956
Online gaming 18%
INR in billion (gross of taxes) | EY estimates
96% | TV (excl. 88
672
news bulletins) | 77
1,89,685 501
68 92
EY estimates | Includes content that was broadcast on TV, released in EY estimates based on publicly available information
theaters or on OTT platforms. Excludes unorganized creator economy, news
bulletins, social and short form content ► New media aggregated 86% of deal volumes, but just
► GEC contributed 68% of total hours on TV (excluding 35% of deal value
news bulletins) in 2023 ► Traditional media deals in television and film comprised
► 117 more films were released in 2023 as compared to 65% of deal value
2022, of which 416 films released on OTT platforms. ► PE/ VC led the percentage of M&E deals in 2023,
However, direct to digital releases halved contributing to 41% of the total funding
► Regional OTT content volumes exceeded Hindi language
content in 2023 for the first time
► OTT content volume growth slowed in 2023 due to
profitability pressures, and could fall in 2024
17
Future outlook
The M&E sector will grow by INR763 billion to reach INR3.1 trillion in 2026
900
800 13 12 5 763
28
41
700 55
69
600 71
500 167
400
301
300
200
100
-
Digital
Online gaming
Television
Live events
Films
OOH
Music
Radio
M&E sector
Increase Total
All figures are gross of taxes (INR in billion) | EY estimates
► The Indian M&E sector will grow at a CAGR of 10% and add INR763 billion in three years
► New media will provide 61% of this growth, followed by animation and VFX (9%) and television (9%)
► We expect all segments to grow, barring unforeseen situations, and so long as India’s GDP grows 5% or more
Media & entertainment
Revenue share | EY estimates | Includes related data consumption charges ► We expect that by 2030, India will have almost a billion
active screens
► Given that video, audio, text and experiences are
available across almost all segments, the M&E sector is ► Of this, around 240 million will be large (TV, laptop, PC)
redefining itself across these four verticals: and the balance will be small (mobile phones, phablets)
• Video – TV, video OTT, short video, social ► Given the 1:3 ratio between large and small screens, it
will be imperative for media companies to have a multi-
• Experiential – Online gaming, cinemas, events, OOH
screen and multi-format strategy
• Textual – print, online news
• Audio – radio, music, audio OTT
► Video remained the largest earning segment in 2023,
as it is the simplest and most easy-to-understand
medium of consumption
► The pandemic impacted 2020 and 2021 as regards
experiential revenues, but those have now recovered,
and we expect their share to keep growing as India’s per
capita income grows
► Text has probably seen a permanent loss due to the fall
of print circulation, but will remain relatively stable as
regards ad and sub growth, albeit at a slower rate than
other media
► Audio revenue models remain largely digital advertising
supported, and while efforts are on to grow paid
subscriptions, their revenue share will remain stable
19
II. The future of television will be three III. Bundling will become critical for smart TV
significant segments growth
► Just as DPOs aggregated content from broadcasters
2023 2026E 2030E for linear television, telcos and ISPs will need to offer
Pay TV 118 113 83 bundles at various price points to attract and retain
consumers
Free TV 45 50 57
Smart TV 19 40 100 ► We estimate that if pricing is made comparable to
television pricing (or at a slight premium when bundled
Total 182 202 240
with data) for popular streaming services, the reach of
EY estimates | Millions of Indian connections smart TVs could cross 100 million households sooner
► By 2030, the large screen opportunity will evolve into ► The unified interface will become a critical aspect of
three significant segments across pay, free and smart future growth of connected TVs, both from a simple
TV, none of which can be ignored by broadcasters and customer experience point of view, as well as a place
studios for discovery of content. It will become the new landing
page and earn placement and marketing revenues
► Pay TV will continue to gain audiences, but will also
start switching to smart TVs as wired (or similar)
IV. New content windows will emerge
broadband grows from 38 million homes today to 70
million homes by 2026 and over a 100 million by 2030 ► Monetization will be at the mercy of consumers’
willingness to pay, and unlike international markets,
► The potential introduction of direct-to-mobile (D2M)
Indian markets are more heterogeneous and need to be
television services will increase the relevance of free
finely segmented
television outside the home and during transit
► Accordingly, premium SVOD, theatrical, SVOD, bundled
► Both the telcos and the LCOs will play an important
SVOD, satellite, TVOD and finally free television
role as they aim to increase ARPUs, through bundling
windows could come into existence for different types of
broadband with linear TV services, as well as by
content
bundling content to drive adoption of CTV
► Free TV will remain a “temporary” medium viz., it V. Do not write-off linear pay TV
will gain audiences as more families come out of
► Linear TV will grow when TV dark homes come onboard
poverty and into the lower middle class, and it will lose
and when free TV audiences upgrade to pay
audiences as the middle-class families move up
► Given India has around 323 million households today,
► The key challenge posed by connected smart TVs is that
growing to 345 million by 2030, of which say 25% will
broadcasters will now compete against social media and
be under the poverty line, there is still an opportunity of
digital native platforms as well for share of time on the
around 70 million homes
large screen
► In order to address the opportunity and reduce
television dark households, a number of initiatives will
need to be evaluated, such as:
• Creation of lower priced FTA packs
• Differential pricing and bundling for rural markets,
in agreement with the regulator
• Reactivation of the millions of inactive set-top
boxes through incentive schemes
• Creating relevant content baskets for under-
penetrated markets
Media & entertainment
Experiential trends
I. Online gaming will grow to reach INR388 III. Premium OOH assets will drive growth
billion by 2026 ► The difficult-to-reach affluent audiences at airports,
► The segment will grow across all its verticals viz, esports, in premium trains and commercial and entertainment
fantasy sport, casual gaming and other games of skill, but establishments would provide impetus for marketers to
revenue growth will be led by mobile-based real-money invest in the OOH medium
gaming and casual gaming
► The share of DOOH would reach 15% of total OOH
► As many global companies look to launch their games in revenues as the number of screens in premium
India, we expect in-app purchases within casual games catchment areas increases, without hurting the growth
and esports to become significant revenue streams of traditional OOH assets, as budgets would get more
integrated with digital media purchasing
► Consolidation is on the cards, post the GST regulation
changes of 2023. We expect the market to stabilize with ► A good deal of entertainment, sports and cultural
two to three fantasy sport players, one to two players venues are being set up in tier II and III cities, which will
each in rummy and poker, and one or two large multi- provide a further boost to addressable OOH inventory
game platforms and revenues
Why reinvent?
The M&E sector has been evolving at a rapid pace for the last two decades. While transformation and disruption have become a norm
across several subsectors, strong undercurrents have been brewing in the past few quarters, which threaten to completely alter the
landscape. It is hence important to reinvent not just what one is doing but how we are thinking about M&E. The following trends,
frothing below the surface, are likely to force that rethink, if not an overhaul of the current perspective on what we think is M&E.
EY estimates
1
25
Innovation themes
In this section, we have identified some interesting trends we expect to see over the next three to five years, and areas where
innovation will be highest.
Video
A billion screens of opportunity ► Cross-platform
► programming: Build a multi-media strategy across all
three significant segments of the TV base, from high priced, custom and
► Active screens will grow to almost 1 billion by
premium products on CTV, to a windowed free TV offering on FreeDish and
2030, of which 240 million will be large, and
FAST products
750 million will be small phone screens
► CTV
► play: Build a CTV product (if not yet done), or be part of a paid or
► The 240 million large screens will be around
FAST bundle
70-80 million each across pay TV, free TV and
connected TV ► Audience measurement: Measure cross-platforms consumption, with a
common metric to demonstrate real RoI to advertisers
Digital video ► Bundling: Create bundles for reach of FAST products across devices,
operating systems, connected TV, OTT aggregators and telcos
► Most OTT platforms are currently not
profitable ► Discovery: Manage nuances of unified search, including discovery
► As online consumption grows, and ad rates ► Efficiency: Curtail content costs – consider content at TV+ cost, and
remain low, break-even can be delayed manage churn through TV-like content which has a longer duration
► Competitive scale: Consolidate regional OTT players
Short and social media ► Monetization strategy: Build out a short-term and long-term social media
monetization strategy
► Over half the time spent on phones today is
on social media2 ► Talent leverage: Build-out an influencer management platform using talent
relationships
► Majority of marketers use, or plan to use,
influencers3
Audio
Digital audio ► Focus
► on market share: Invest in IP and consolidate smaller regional
libraries
► Audio streamers will double from 185 to over
360 million ► Reduce cost of funds: Crowdsource funding for new artists
► Paid subscriber base will grow from 7.5 ► Discover
► relevant music: Crowdsource songs for use in films using AI
million to over 15 million
► Extend fan life-time value: Extend artist life infinitely by using generative
AI, to retain fans longer
► Leverage OTT audiences: As OTT reaches over 60 million homes by 2023,
build out OTT-related music
data.ai
2
Experiential
Live experiences ► Align
► to brand needs: Create event delivery networks covering the 1
million plus towns of India
► 61% of marketers expect to increase spends
on events in the next two years4 ► Build communities that matter: Convert event IPs to year-long
engagement platforms and manage them as communities
► Ticketing revenues are now several times
higher than their pre-pandemic levels, and are ► Expand geographies: Evaluate the Tier-II town ticketed events opportunity
expected to keep growing significantly5
► Increase focus on the top-end: Bring international events formats to India
Film ► Create low-cost capacity: Build infra and content for the next 100 million
audience segment
► India has less than 10,000 screens, and the
highest deficit is in Hindi speaking markets ► Incentivize footfalls: Build out loyalty programs
► Less than 100 million Indians visited a cinema
hall in 2023
Online gaming ► Re-evaluate the business model: Reinvent the RMG business model post
GST impact; evaluate a mix of RMG and casual games
► Gamers will grow from 455 million to over
500 million ► Build scale: Consolidate audiences to provide a scaled casual gaming
audience to advertisers
► Casual gaming will grow fastest, spurred by
frictionless in-app purchases ► Focus on in-app revenues: Create more sachet-priced in-app purchase
offerings, and add value to purchases through rarity and tradability
► Global gaming will reach over US$600 billion
by 20306 ► Serve global: Build game development and operations service centers to
cater to the world from India
OOH ► Build premium offerings: Focus on premium assets and asset clusters
Digital OOH to grow from 9% in 2023 to 15% of ► Dominate markets: Create must-have bundles of assets across cities,
total OOH revenues backed by plans that incorporate better measurement and prevent wastage
► Remove demand-side friction: Integrate with digital ad networks and
create self-serve platforms
Text
Print ► Enhance utility: Focus on hyper-local news, deep analysis, expert opinions,
deals, coupons
► Base of new readers is not growing as fast
as it used to, and the second newspaper in a ► Evangelize credibility: Focus on differentiators and the “10 minutes and
household will disappear from homes 20 pages for success” narrative
► Print is perceived as the most trusted news ► Bundle for reach: Bundle innovatively with digital versions, OTT and other
source online and offline services
► Environmental concerns will be raised on ► Align to advertiser metrics: Own Tier-II and III town consumption growth,
production and distribution providing a dominant multi-media offering across print, OOH, activations
and radio
► Target SMEs: Tap into the SME powerbase
► Save costs to fund reader acquisition: Share infrastructure (printing,
delivery, newsgathering, etc.) to optimize costs
Online news
► Partner for efficiency: Create a Netflix-esque joint-industry app for India
► Online news to grow from 456 million to over
news and manage ad rates and subscription models for premium news
508 million by 2026
► Promote branded news: Build on the “credibility” theme with enhanced
► Over 60% of online news consumers come
fact-checking and moderation processes, and mandate all news to carry an
into contact with fake news7
authenticity score or a manner to verify its authenticity
4
EY survey of marketers 2024
5
EY survey of event companies
6
www.fortunebusinessinsights.com/gaming-market-105730
7
DNPA-EY online news survey 2023-24
27
Monetization
Advertising ► Service SMEs: Implement portals for SME advertisers to create ad content,
plan media buys and even avail funding for their ad spends secured against
► SME digital ad spend to cross INR300 billion
sales
by 2026
► Build 1P data: Build first-party data and partner for data depth and quality
► Cookie deprecation will reduce the ability to
to navigate the cookie-less world; evaluate contextual/ psychographic
target audiences as was previously done
targeting models
Subscription ► P
► artner for scale: Form associations and partnerships across established
OTT services, aggregators, payment gateways and app stores with large
► TVOD can grow from INR5 billion to INR20
captive audiences for TVOD at both a service and sachet content level
billion by 2028
Content
Content production ► Manage price-points: Create production capacity across various price
points – tentpole, TV+ and TV
► Demand for premium OTT content to increase
from around 3,000 hours to 4,000 hours by ► Re-think windows: Enable innovative windowing strategies to sweat
2026 content assets more
► In addition, demand for content which costs ► Increase cost control: Implement improved rate benchmarking and tighter
as much as, or a little more than, television cost management, which could help add up to 5% to margins
content will be 2,000 hours
► Sweat high-cost OTT assets: Syndicate appropriate OTT content to TV
► Leverage creator ecosystems: Leverage large creator ecosystems and
build influencer content into programming
Animation and VFX ► Create new-age capacity: Leverage upcoming media cities across India
to create the largest, scaled, post-production and VFX service hub in the
► Demand for tentpole properties going up
world, focused on AR/ VR, virtual worlds and global content movement,
globally
and build the talent to support
► An average 25% of consumption of content is
► Create differentiated IP: Build development IP on Unity, Unreal Engine,
now outside of its original language market8
etc. to enable differentiated made-in-India products
Infrastructure
Digital infrastructure ► Leverage the LCO network: Incentivize and fund LCOs to build broadband
networks in their localities
► Wired (and similar) home broadband will grow
from around 38 million9 to 70 million by 2026 ► Increase utility of broadband: Launch content ++ home packages
including interactivity, security, education, etc.
► Direct to mobile (D2M) technology is being
considered for launch across larger cities ► Plan for D2M: Implement D2M window and monetization strategy
Workflows ► Re-think supply chains: Evaluate advanced tech systems for edit, DI,
VFX, etc., which can be accessed on cloud or mobile to anyone and
► Technology disaggregation is increasing
post-production, sound and creative talent can be harnessed across
access to technology and 5G networks
geographies
► Cloud-based systems will enable tech
availability at work and at home across
regions
► The M&E sector is one of the largest
adopters of the gig economy style of talent
management
Home equipment ► Create a nupscale strategy: Premium experiences, products and audio-
► Advent of 4K and 8k technology will create visual experiences
a class of super-affluent audiences who will
► Protect cinema-going audience base: Cinemas that cater to top-end
enjoy high-quality home entertainment
audiences will need to re-invent their offerings to differentiate from high-
quality home infrastructure
Note: All numbers are EY estimates unless otherwise mentioned and are meant to be used directionally only.
TRAI
9
Media & entertainment
Segmental
trends
29
Television
Executive summary
The television segment has witnessed some interesting, yet dichotomous developments in recent times. Although
the number of pay TV subscribers continue to decline, the overall number of TV viewers continues to grow. While
advertising shrunk, the number of TV screens are growing and the overall segment is expected to have a positive
outlook in the coming times. Viewership of connected TVs would continue to grow and proliferate with the increase
in broadband and 5G. Overall, while the coming times would provide many growth opportunities, the segment would
also face competition from other avenues, such as social media, gaming and short videos.
INR billion (gross of taxes) | EY estimates ► By 2026, television revenues are projected to reach
INR765 billion, with a compound annual growth rate
Advertising (CAGR) of 3.2%, approximately half of the expected
► TV advertising revenue fell 6.5% in 2023 inflation rate
► Advertising volumes declined 2.6% in 2023 as the ► Total TV screens will increase from 182 million in
number of brands using TV in 2023 fell by over 5% as 2023 to 202 million by 2026, with the mix changing
compared to 2022; the fall was led by national channels significantly in favor of connected TVs
which witnessed a 9% drop while regional channels ad ► The situation post 2026 could be quite different, once
volumes remained stable wired broadband crosses 60 million to 70 million homes
► Ad rates fell 4% on an average as the advertiser mix and 5G connections scale significantly. At this point,
shifted to lower yield categories we expect connected TVs to start scaling more quickly,
and reach 100 million by 2030, while linear TV homes
Subscription drop to 140 million, of which 57 million would be free
► Distribution income reversed its falling trend in 2023 to TV homes
grow 2%, despite pay TV homes reducing by 2 million
to 118 million (including pirated and under-declared
homes)
► Pay TV ARPUs increased by approximately 4% to reach
INR274 per month (gross of taxes)
► An increase in piracy and under declaration was noticed
as channel price increases could not be entirely passed
on to consumers
► Connected TV sets reached 35 million, of which around
19 million connected to the internet weekly
Media & entertainment
Reach
Number of television channels DD FreeDish continued to be the
increased to 899 largest distribution platform in India
September September December Date Channel count
2021 2022 2023
FTA 558 532 546 December 2018 80
► 61% of channels were free-to-air in 20231, reflecting the December 2022 179
shift of affluent audiences to connected TVs December 2023 189
► News channels comprised 44% of total channels
2
https://www.freedish.in/, accessed 11 January 2024
► MSO registrations declined by 43% and stood at 998 as ► Four large broadcast networks, Star India, Viacom18
at end of 2023 as per MIB. This reduction of MSO was Media, Zee Entertainment Enterprises and Sony
on account of non-renewal/ cancellation/ surrender of Pictures Networks India, pulled out their Hindi general
registration pursuant to directive from TRAI in guidelines entertainment channels from DD FreeDish in early
circulated in December 2022 2022, but still had a total of 13 channels on the
platform
► The Indian market is serviced by four paid DTH providers
and one free DTH provider as of December 2023 ► Our interviews with over 20 dealers of FreeDish
viz. Dish TV, Tata Play, Airtel DTH, Sun Direct and DD consumer premise equipment indicated that the
FreeDish demand for customer premise equipment, while still
present, had declined, primarily due to:
► NXT Digital continues to operate the lone headend in the
sky (HITS) service in India • Fewer channels and limited content being available
on FreeDish
• Many cost-effective bundles being offered on pay
TV
• Availability of free content on OTT platforms and
snackable content on YouTube
Television consumption
YouTube generated massive reach in Overall, time spent on TV increased
several states 2% over 2022
Reach of TV and YouTube
(select states) 1,731
1,614 1,591
100 150% 1,474 1,508
90 130%
80 1,087
110% 1,007 979
70 925 954
60 90%
50 70% 608 643 612 548 554
40 50%
30
30%
20
10 10% 2019 2020 2021 2022 2023
0 -10%
Universe HSM South
Karnataka
Kerala
Guj/ D&D/ DNH
Mah/ Goa
West Bengal
Odisha
MP/ Chhattisgarh
Assam/ North East/ Sikkim
Rajasthan
Delhi
UP/ Uttarakhand
Bihar/ Jharkhand
North states
TN/ Pondicherry
AP/ Telangana
► Certain broadcasters provide their content on YouTube, • Availability of high quality and niche content on OTT
and some DPOs we interviewed felt that this practice streaming platforms, which caters to niche and more
results in the delay in renewal of monthly pay TV affluent audiences
subscriptions
• Growth of wired and wireless broadband to around 38
million households, and sale of smart TVs, which are
growing consumption on that distribution channel
Media & entertainment
Audiences % change
NCCS CDE 4%
Advertising
News TV witnessed a 11% growth in TV advertising revenue fell 6.5%7
viewership
Ad revenues
Viewership of news by language
320 313 318
140 297
15
251
120
52
100
12
80 9
60 1 36
32
61 2019 2020 2021 2022 2023
40
1 1 INR billion (gross of taxes) | EY estimates
20 30 31
► Advertising volumes declined 2.6% in 2023
-
2020 2022 2023 ► National channels saw a 9% volume drop, while regional
Hindi English Regional languages Others channel ad volumes were flat
► The number of brands using TV in 2023 fell by over 5%
BARC | All India 15+ Total AMA (billion) compared to 2022
► While news viewership grew in 2023, it still remains ► Average rates fell by 4%, primarily as the share of
over 30% lower than its 2020 levels lower-yield sectors like FMCG increased while sectors
like gaming, crypto, D2C brands, e-commerce, etc.,
► News consumption has significantly moved to multi-
reduced volumes on the medium. In 2023, the FMCG
platform, with the reach of digital news at 456 million
sector dominated with 16 of the top 20 categories and
as of December 20236, and consequently, audiences
18 of the top 20 advertisers by volume
need to visit TV fewer times a day
► Television remained the most effective mass medium
► This led to several innovations, including increased
from an ad rate perspective
focus on local news, non-news content (entertainment,
sports, travel, etc.) and specials and events
6
Comscore
7
EY estimates; BARC; TAM AdEX
Media & entertainment
GEC and news channels garnered FMCG and e-commerce drove the
the highest ad volumes in 2023 growth in spends on television
Category Category
% share of ad volumes Product category
contribution 2022 contribution 2023
FMCG 45% 47%
8% Others
Kids 3% E-commerce 20% 16%
Auto 5% 6%
Music 12% 30% GEC Household
4% 4%
durables
Real estate
and home 4% 4%
improvement
Movies 22% Banking, financial
services, 3% 4%
insurance
25% News
Telecom 3% 3%
TAM AdEX
Education 4% 2%
► GEC and movie channels garnered 52% of total ad Clothing, fashion,
2% 2%
volumes in 2023, up from 48% in 2022 jewelry
Distribution
Distribution income reversed its Active paid subscriptions continued
falling trend in 2023 to reduce in 2023
Subscription revenues 2020 2021 2022 2023
Cable* 72 68 64 62
468 DTH* 56 55 54 53
HITS* 2 2 2 2
434 Total pay TV 130 125 120 118
8
EY estimates, industry discussions, TRAI data
9
EY estimates
10
EY analysis; industry discussions; subscriber reports
11
Based on our discussions with suppliers of set top boxes
12
https://www.barcindia.co.in/data-insights
Media & entertainment
Future outlook
Connected TV sets neared 35 million We expect television revenues to
► The overall connected TV base reached 30 to 35 million grow to INR765 billion by 2026
unique sets connecting to the internet each month, of
TV segment revenues
which an estimated 19 million connected weekly13
► Seen in context, the reach of connected TVs is now larger 800 468 435
than any individual pay platform in India 434 407 392 399 410
700
► Several platforms and manufacturers have started 600
providing advertising services on their smart TV
500
platforms to the extremely desirable “top of pyramid”
audience, both around social media, short video, AVOD 400
and linear streams 300
320 313 318 297 308 330
► In addition, increased acceptance of permanent and 200 251
temporary work-from-home culture has created a large 100
“laptop audience”. This might explain why second TV sets -
are not being re-connected, and a good case for parity- 2019 2020 2021 2022 2023 2024E 2026E
pricing between linear feeds on TV and on OTT
Ad Subscription
► Weekly connected smart TV sets are expected to grow
INR billion (gross of taxes) | EY estimates
from 19 to 40 million by 202614, given the continued
growth of wired broadband and 5G connections ► We expect television advertising to grow at a CAGR of
3.6% to reach INR330 billion by 2026, driven by:
• In 2024, television advertising, particularly in news
TV, is expected to rebound due to the occurrence of
general elections
• Strong performance of regional channels where
ad rates continue to remain firm due to continued
preference for local language content
• Increased investments in sports, led by a revival in
funding for D2C brands as investment cycles revive
post the general elections in 2024
• Brand extensions by large Indian companies and
international brand launches, all of which require
the reach of TV, as India moves towards becoming
one of the top three economies in the world
(India’s per capita income is expected to grow from
approximately US$2,500 in 2022 to US$3,000 by
202515 which will keep driving consumption and
grow the middle class significantly)
• However, risk factors do exist, such as:
• Absence of a new driver sector to replace ad
income lost from sectors such as gaming,
crypto and betting
• Continued proliferation of free digital
platforms like YouTube, particularly if recent
entertainment content and films are made
available on it, and the growth of time spent on
social media/ short video
13
Industry discussions, EY analysis
14
EY estimates
15
EY publication “India @100”
39
► Subscription income will achieve a CAGR of 2.9%, The proposed ad cap rule could
reaching 435 billion by 2026. This growth is driven by
several conflicting factors: impact revenues
• Television households will grow due to the following ► The Telecom Regulatory Authority of India (TRAI)
reasons: has approached the Delhi High Court against seeking
stricter implementation of the 12-minute ad cap rule,
• I ncrease in population will increase Indian to bring about a level playing field and the matter is
households from 323 million in 2023 to 332 currently sub judice
million till 202616 which will increase the
demand for TV sets ► Implementation of the ad cap will significantly affect
ad volumes, especially for news channels and some
• 1
65 million households will enter the Indian entertainment channels for their key impact properties,
middle class by 203117 that have been historically airing ads for more than the
• L
ow entry barrier to consume free television earlier prescribed limit of 12 minutes per hour
• C
ontinued electrification of rural areas, ► To compensate for the drop in revenue due to limited ad
particularly in the Hindi speaking markets like volume, ad rates would need to increase significantly,
UP and Bihar which we believe will be extremely difficult and lead to a
10-15% drop in ad revenues19
• Efforts to reactivate deactivated STBs which
have been initiated by certain private players
• R
elative pricing of television to broadband
remains — currently — much in favor of
television
• Availability of television sets for as low as
INR6,00018 as well as a flourishing second-
hand television market
• But active television homes will face downward
pressures as well:
• C
ontinued movement of the top-end pay TV
base to connected TV platforms as broadband
and 5G penetration increase
• LCOs’ focus on growing direct broadband
connections due to a higher margin per
consumer, which makes a strong case for
growing LCO TV margins
• Increased time spent on OTT platforms, social
media and gaming platforms, which are vying
for a share of free time
► In view of the above, we expect total television segment
revenues to grow at a CAGR of 3.2% to reach INR765
billion by 2026, but the picture could change quickly
post 2026 (refer to the rest of this section)
16
Worldometers.info
17
A 2023 report by non-profit think-tank PRICE
18
Amazon.in accessed 11 January 2024
19
EY estimates
Media & entertainment
#Reinventing TV
As TV screens grow, strategy will Entertainment genre growth will
need to dissect require innovation and incentives
► Multi-window innovation, i.e., packaging and pricing
2020 2021 2022 2023 2026E
across the three TV consumer segments, needs to be
Pay TV (cable + implemented
131 125 120 118 113
DTH + HITS)
Free TV 40 43 45 45 50 ► Broadcasters will need to create smart bundles – at
differential price points – for different regions and
Unidirectional
171 168 165 163 162 audiences, subject to regulatory permissions
TV
Connected TV ► Increased flexibility can be provided to subscribers to
5 10 15 19 40
(bi-directional) choose/ replace channels within bundles in order to
Total TV 176 178 180 182 202 prevent churn
EY estimates | millions of subscriptions
► TV content distributed through OTT platforms could
be placed behind a paywall, and not be provided free
► Overall TV connections will keep growing at a healthy of cost online along with its TV broadcast, except for
pace to reach 202 million by 2026 as India’s per capita those who have subscribed to the channel on TV , or as
income continues to grow delayed catch-up viewing
► The market is clearly segmenting into pay TV, free TV ► OTT and short video content can be used to create
and connected TV, each being sizable in itself metro-centric television channels
► Content studios, broadcasters and distributors will ► Public-private partnership can enable TV dark homes to
need to address the needs of each of these segments buy televisions through incentives such as:
separately, to effectively monetize their products and
services • Free distribution of sets under government
programs in border/ sensitive areas
► Innovation is required on Pay TV content (and bundling)
to ensure the fall in audience is not higher, an area • Subsidized distribution of sets and STBs
where many broadcasters have reduced focus in recent • Creating a low-cost India TV plus receiver product
years, as they focussed on gaining OTT audiences with
differently created content ► Industry action is required to enable activation of the
current base of several million deactivated boxes which
► There is a need to create custom viewing products for some estimate to be 20 million in number
connected television consumers who need more than
just linear feeds, particularly in genres like news and ► Increased adoption of HD hardware needs to be
infotainment incentivized to enable premiumization
Trends
India connected TV
Powered by Samsung Ads
Reach
Viewership
5.1
5 hours 34.4 99%
Of all streaming
Average streaming Total hours spent Total hours spent
time was on the
apps per household watching linear TV per watching OTT per TV
top 10 apps
TV per month per month
Consumed both linear
TV and OTT content
9% 17%
watched only 74% watched
linear TV only OTT
Share of total
streaming hours
11
Source: Samsung Ads proprietary ACR data India 2023. Viewership is Weighted average viewing time per category. All data has been provided by Samsung Ads to EY
and has not been independently verified by EY.
43
Media & entertainment
Trends
Television viewership
Powered by
Aggregated viewership of 1.51 trillion gross 81% of the TV viewership was people
AMA was generated watching television in India under 50 years of age
Up 2% from 2022 Up from 79% in 2022
Total TV viewership Age-wise TV viewership
1,731 450 453
1,591 1,508 420 424
1,474
352
1,087 301
979 925 954
643 612 548 554 164 143 139 136
9% 9%
Malayalam
English
Bangla
Oriya
3% 2% 2% 1% 1% 1% 1% 1%
Multiple
Gujarati
Hindi
Kannada
Assamese
Total
Tamil
Marathi
Telugu
Punjabi
Bhojpuri
-2% -3%
-5%
-11%
All India 2+ | Wk1 to Wk52 | AMA (weekly average)
At 44%, Hindi remained the most viewed Average time spent on TV increased
language on television
56% of viewership was in Indian regional languages Weekly
2023 Average Weekly AMA
cume reach
Share of language viewership (2022) time spent (billion)
(million)
44% 3:41:39
Hindi 42% India 757 (760) 29.0 (28.3)
(3:35:00)
43%
3:29:25
South 34% HSM 520 (523) 18.3 (17.8)
(3:21:17)
Indian 34%
languages 35% 4:06:25
South 237 (237) 10.7 (10.5)
(4:02:54)
1%
English 1%
All India, Wk1 to Wk52, 2022 and 2023 | Based on
1%
weekly average viewing minutes
Other 22%
languages 24%
21%
9% Personal accessories
Auto
FMCG
FMCG: baby care, food & beverages, hair care, household products, laundry,
personal care/ personal hygiene, personal healthcare, cosmetics; Education:
excludes online and digital classroom
1 Reckitt Benckiser (India) Ltd 211 217 Entertainment (GEC) 49% 50%
2 Hindustan Lever Ltd 187 207 Movies 25% 26%
3 Godrej Consumer Products Ltd 48 69 News 6% 6%
4 Brooke Bond Lipton India Ltd 39 45 Music 4% 4%
5 Cadburys India Ltd 39 40 Sports 3% 3%
6 ITC Ltd 25 32 Infotainment 0% 0%
7 Ponds India 31 29 Others 12% 11%
8 Procter & Gamble 26 27
Others 11%
9 Coca Cola India Ltd 38 27
10 Procter & Gamble Home Products 19 25 Sports 4%
Trends
TV advertising
Powered by TAM AdEX
(A division of TAM Media Research)
The top five genres garnered 92% of total Two-thirds of non-program inventory
ad volumes remained commercialized
While overall ad volumes on TV fell 3% A third was used for channel and program promos
3% Kids
Music 12%
8% Others Only promotional 32%
Movies 22%
30% GEC
Regional
The top two advertisers contributed 30%
814 hours of TV advertising volumes
average ad volume/ Up from 23% in 2022
National
channel per year
Rank Top five advertisers Share
622 hours
average ad volume/ 1 Hindustan Unilever 17%
channel per year 2 Reckitt Benckiser India 13%
3 Godrej Consumer Products 4%
4 Procter & Gamble 3%
5 Cadburys India 2%
TAM Media research. TAM AdEX’s data pertaining to 600+ television channels for Jan to Dec 2023. December data is till the 29th. Volumes are in seconds unless
otherwise stated. The data has been provided by TAM Media Research to EY and has not been independently verified by EY
47
2022 2023
Rank
Top five sectors Share Top five sectors Share
1 Food and beverages 21% Food and beverages 22%
2 Services 16% Personal care/ personal hygiene 18%
3 Personal care/ personal hygiene 15% Services 13%
4 Household products 8% Household products 9%
5 Personal healthcare 8% Personal healthcare 7%
2022 2023
Rank
Top five categories Share Top five categories Share
1 Toilet soaps 4% Toilet soaps 7%
2 Toilet/ floor cleaners 4% Toilet/ floor cleaners 4%
3 Ecom-media/ entertainment/ social media 3% Washing powders/ liquids 3%
4 Milk beverages 3% Ecom-media/ entertainment/ social media 3%
5 Washing powders/ liquids 3% Tooth pastes 3%
Top five celebrities Share Top five TV celebrities Share Top five sports celebrities Share
This year marks a pivotal moment for the M&E industry, The M&E landscape in India is conducive for businesses
with companies recalibrating strategies with a focus to build robust and scalable models for the future that
on scaling for long-term growth, enhancing viewer amalgam creativity, technology and monetization in a
choices at diverse price points, and embracing emerging seamless manner. Amidst this, understanding the pulse
technologies, including Gen AI. of the audience, to deliver personalised and innovative
experiences across platforms, will play a crucial role in
determining success.
The Indian economy is displaying immense buoyancy, The surging ascent of Connected TVs marks a pivotal shift
and the continued growth momentum will spur revenue in media consumption, providing unparalleled engagement
maximisation opportunities for the sector going. The for audiences and a wealth of opportunities for Advertisers.
real potential of the industry is set to unlock as content This trajectory sets the stage for an era characterized by
distribution and monetization models evolve, resulting in innovation and seamless connectivity
higher ROI for all partners in the media value chain.
Kalli Purie Gaurav Dwivedi
India Today Group Prasar Bharati
I foresee a data-driven future and ISEC migration will India’s ME sector stands at a cusp of embracing new age
be crucial in establishing quality audiences on the news content, platforms and audience profile. This evolution
genre. Responsible content will bolster news brands - provides industry leaders an exciting opportunity to
brands built around trust will combat misinformation. create a society that is aware, agile and adaptive.
D2M is another big lever that could exponentially boost
the reach of the genre.
The battle for eyeballs between TV and digital will only In the evolving media landscape, visionary storytellers
intensify. Collaboration between media companies, unite diverse audiences. Embracing tech and diverse
telecom operators, and tech giants will become more narratives will create connections, unlocking opportunities.
common as stakeholders seek to leverage each other’s Innovation and collaboration will be essential for thriving
strengths and resources to add impetus to the entire in our ever-changing media ecosystem.
media value chain.
The challenges of the news television industry are In the absence of a reliable census since 13 years and
only going to grow, and they need to be addressed. Covid-induced disruptions, most data points are extra-
Our focus going forward will be on cost reduction, extrapolations. Digital is no different with adex and user
boosting alternative sources of revenue like subscription data largely self-declared. Data is the bedrock of the
revenue, and adoption of technologies like AI for better media business for objective in decision making which is
productivity and innovation. otherwise prone to the sensitivities of the chief decision
maker in organisations.
Harit Nagpal Nakul Chopra
Tata Play Ltd. BARC
Availability of same content as pay and free has been Television viewership in 2023 has grown smartly versus
behind the stagnation of the pay industry, TV and OTT. If 2022 and currently exceeds even 2021 ratings. Marquee
content owners correct that, the industry will grow again. events like IPL have seen large growth in viewership. Not
to take away the performance of other screens – but TV
continues be the definitive screen for Indian homes.
With digital saturation expected to slowly envelop the Evolving consumer preferences, increased internet access,
consumer footprint, distribution companies are directing and emerging technologies are fast reshaping M&E in
their focus on retention strategies that extend well beyond India. With the emergence of access to technologies like
the realm of discounts. Integrated product offerings – like 5G, Fiber, and Satellite, a sizeable section of consumers
bundled broadband, television, & OTT could soon become are enjoying seamless streaming of higher quality
the “de rigeur” offering to consumers. content, thus unlocking new opportunities for the sector.
Manoj Dobhal
DishTV India Limited
Regulatory forbearance is critical for the Pay TV universe, The focus on an AVOD ecosystem (especially on sports)
allowing broadcasters to unleash their creativity and will continue, but will have to be balanced with SVOD
produce top-quality sports and entertainment content. economics, as AVOD will remain brutal with Big Tech
An environment of choice and flexibility will enable an dictating the CPMs. Aggregation/ bundling of apps and
ecosystem which will continuously engage and captivate consumer convenience will be a key focus to grow the
consumers, driving growth and innovation in the SVOD business.
industry.
Linear TV being economic, having easy content The implementation of NTO 3.0 coupled with the growth
accessibility and stable connectivity continues to be a of the pay-TV ecosystem across households, signifies
platform of choice for the masses. With media penetration positive mid to long-term growth for linear subscription
less than 70% and increased disposable income, rural revenues. A well-balanced approach towards pricing and
India provides the next big opportunity for growth. quality content will determine the consumer’s platform of
choice.
Amit Arora
Indiacast
As India leans into premiumization, high-quality The industry anticipates sustained growth, fueled by
content and immersive experiences ensure growth India’s resilience amidst global challenges and a positive
across traditional and modern platforms, supported consumer outlook. Consumer demand is expected to be
by integrated technology, AI, and data privacy. Brands strong across urban and rural markets. Advertisers will
will be willing to invest more for stronger consumer continue to invest in growth with increased ad spends,
connections and transactions compared to alternative making 2024 a promising year.”
content or data aggregation methods.
All macro-economic indicators are pointing towards While a digital presence grabs attention in today’s fast-
higher consumption levels, which will lead to a significant paced world, television brings credibility and prestige
rise in AdEx across markets. Leveraging the synergies that helps build enduring brands. Key is to shift from
between TV & digital to improve yield and generate high digital vs. TV to a digital and TV mindset for powerful
ROI will enable advertisers to have a sustained presence brand impact.
throughout the year.
Digital media
Media & entertainment
Executive summary
India recorded 1.19 billion telecom subscriptions, which indicates a stable digital infrastructure landscape. Although 5G
proliferated, with 130 million subscriptions, 4G continues to dominate the market. Connected TV saw a 50% growth as internet
penetration continues to rise. The broadband market is growing with subscriptions numbers recording 904 million. It is inevitable
that smartphone users have grown and consequently, the average usage time continues to rise. Despite high app downloads
of 26.4 billion, India was behind in monetizing this potential, with users spending half their time on social media apps. Video
viewership progressed, while content platforms focused on localizing, particularly in popular genres of drama, action and thrillers.
Enhanced digital engagement led to different patterns in content consumption and advertising. The year also saw the growth of
digital ad spending by 15%, predominantly in search and social media. By 2026, the digital segment is expected to grow to INR955
billion with an increased focus on governance.
Digital infrastructure
Over a billion telecom subscriptions II. 5G reached 130 million subscriptions,
though 4G still dominated
Subscriptions by type of network
I. Telecom subscriptions remained stable at
1.19 billion in 20232 100%
12%
Telecom subscriptions (in million) 22%
80%
20%
2% 11%
0%
2022 2023
5G 4G 3G 2G
Ericsson mobility report, November 2023 and 2022
III. Internet penetration increased by 8% V. India was among nations that had the
lowest data charges in the world
Internet subscriptions Dec Dec Dec
(in million) 2021 2022 2023E
Average cost of 1GB of mobile data in 2023 (US$)
Narrowband (a) 37 34 34
Israel 0.02
Broadband (b) 792 832 904
Urban (a) 496 516 554
India 0.2
Rural (b) 333 350 384
Total (a+b) 829 866 938 France 0.2
TRAI, EY estimates
Australia 0.4
► 79%
► of telecom subscriptions accessed the internet, up
from 74% in December 20224
Saudi Arabia 1.5
► 96%
► of those accessing the internet used broadband,
of which 4% used wired broadband and the rest used Germany 2.1
wireless services
United Arab
► Broadband
► usage increased by 9% in 2023 4.6
Emirates
► Urban
► internet subscriptions, which comprised 59% South Korea 5.0
of all internet subscriptions, grew 7% while rural
subscriptions grew by 10%. In 2023, the government
Canada 5.4
approved an outlay of INR1.39 trillion for BharatNet,
the government’s project for last-mile connectivity
New Zealand 5.9
across 6.4 lakh villages in the country5
United States 6.0
IV. Broadband subscriptions reached 904
million Switzerland 7.3
► Around
► 12% of Indian households had a wired
broadband connection
► According
► to data published by Ookla in December
2023, India ranked 22nd in the world for mobile speeds
and 85th for fixed broadband speeds, with median
mobile internet connection speed via cellular networks
at 91.81 Mbps and median fixed internet connection
speed at 60.13 Mbps6
4
TRAI, EY estimates
5
https://pib.gov.in/PressReleasePage.aspx?PRID=1847835, bbnl.nic.in
6
https://www.speedtest.net/global-index/india
59
► Over
► 90% of all television sets sold in 2023 were smart
2020 2021 2022 2023 TV sets8
EY analysis
► Growth
► in wired broadband connections, 5G wireless
► At 574 million, around 40% of India’s population uses connections and tentpole sports events like the ICC
smartphones Cricket World Cup, IPL and FIFA World Cup with
advanced engagement features have helped drive sale
► Smartphone prices have remained high since 2022, of connected TVs
tapering growth rates, though prices may come down in
2023 as the Indian government reduced import duties III. Android remained the most preferred
on certain components used in smartphone production operating system in India9
from 15% to 10%6A
Share of web-page requests originating
from mobile handsets
4.0% | iOS
0.7% | KaiOS
0.1% | Others
95.2% | Android
► iOS
► market share increased by 0.04% compared
with December 2022, whereas Android and others
decreased marginally
6A
https://timesofindia.indiatimes.com/gadgets-news/govt-cuts-import-duty-on-smartphone-manufacturing-parts-will-prices-decrease/articleshow/107297543.cms
7
Industry discussion; EY estimates
8
Counterpoint research, https://www.counterpointresearch.com/insights/india-smart-tv-shipments-h1-2023/
9
Mobile Operating System Market Share India”, Statcounter, https://gs.statcounter.com/os-market-share/mobile/india/#monthly-202212-202312-bar, accessed 17
January 2024
Media & entertainment
Content consumption
Overall consumption trends
6.1
5.6
5.3 5.3
5.0 4.8 4.7 4.5 4.5 4.5
Indonesia Thailand Argentina Saudi Arabia Brazil India Mexico Singapore South Korea Turkey
data.ai | State of Mobile 2024
► At
► 4.8 hours per day, Indians came sixth in the world, ► Indians
► spent an aggregate of 1.19 trillion hours on
for the most amount of time spent on phone apps in their mobile phones in 2023, up 10% from 1.08 trillion
2023, a 9% growth since 2020 hours in 202210, which was the highest in the world
II. Indians downloaded 26.4 billion apps in 2023, but India lagged on monetization
113.4
26.4
12.6 10.3 7.6 5.6 5.2 3.9 3.5 3.4
State of Mobile 2024, Data.ai, Hours spent are android phones only
10
61
In billion China India US Brazil South Japan IV. Average mobile data consumption
Korea increased 24% in 202314
Downloads 113.4 26.4 12.6 10.3 1.91 2.51 ► In
► India, average monthly mobile data usage per
Hours 1,122 1,193 217 265 61 57 smartphone was 31GB per month in 2023, and this
spent11 is set to increase at a CAGR of 16% to reach 75GB by
2029
Consumer 52.1 0.6 45.0 1.7 7.9 17.9
spend (US$)12 ► Growth
► was driven by increased adoption of 4G and 5G,
data.ai | State of Mobile 2024 which grew to 85% of total subscriptions as compared
to 74% in 2022
► India
► became the leader in terms of time spent on
mobile apps, overtaking China ► Globally,
► video traffic is estimated to account for around
73% of all mobile data traffic in 2023, a share that is
► In
► terms of revenue, however, India continues to lag forecast to increase to 76% by 2029
compared to many smaller markets and did not feature
in the top 20 revenue generating markets of 2023 ► Media
► and entertainment, including news, books, music,
video and gaming, contribute to over 75% of data
consumption in India15
III. Indians spent half their time on social
media apps
Time spent on apps in India (2023)
M&E 28%
Social &
50%
communication
Other 22%
► 78%
► of the time spent on mobile phone apps by Indians
is on media and entertainment
► Time
► spent on social media grew to 50% of total time
spent, up from 42% in 201913 on the back of growth
in short video content created around news, music,
entertainment and gaming
► Others
► include productivity, tools, health, lifestyle,
shopping, etc.
11
Android phones only
12
Gross of any app store commissions
13
FICCI-EY CY2019 report
14
Ericsson Mobility Report, November 2023 and 2022
15
Industry discussions; EY estimates
Media & entertainment
► Video
► viewers increased 7% (36 million) in 2023 to reach Reality
563 million, which is around 98% of smartphone owners Mythology/
and wired broadband subscribers documentary
► We
► estimate video viewers will cross 700 million by 2026 Others
► The
► above data includes consumers from YouTube, which Horror
has 467 million users, i.e., 18.7% of its global users from
0% 20% 40% 60% 80%
India16
2022 2023
II. Platforms increasingly invested in localizing EY content services team estimates
content
► Of
► the titles we analyzed, over 60% belonged to the
OTT titles produced by language drama, crime or action genres
► The number of reality shows was lower, but they pulled
47% 50% 52% in very large audiences, and we expect these to increase
in 2024
► A surge in demand for mythologies and documentaries
was also noted in 2023
53% 50% 48%
https://www.demandsage.com/youtube-stats/
16
63
281
211
181
125 122
104
78 76 75
46 43 42 35 30
Times Internet Limited
Network 18
Zee Digital
HT Media Group
India Today Group
Inshorts
Amarujala Group
Comscore | Data is for select companies and has not been de-duplicated;
does not include Google News; aggregated across key platforms at a group
level, average across 2023
► Times
► Internet’s digital platforms had the highest MAU VI. Fake news became a serious concern28
among legacy news companies, while Dailyhunt had the
► 61%
► of survey respondents believed they had been
highest MAU among news aggregators
served fake or misleading news in the last month, and
► Except
► for Times Group and DB Corp, most news one in three was unable to identify the authenticity of
publishers had an extremely low proportion of app- such news
based audiences
► The
► advent of generative AI and deepfake technologies
► The
► most common source of news consumption is can only make this issue more prominent going forward,
now social media. A survey of online news consumers and there is a crucial need for self-regulation and
indicated that 79% consumed news on or via social boundaries to be created to prevent this malaise
media24
► Consequently,
► most news publishers generate over 80% VII.The DNPA has requested for regulatory
of their MAUs on their websites25, which serve fleeting support
and transient traffic, in effect becoming an ad-rate ► The
► Digital News Publishers Association, a body
arbitrage business with extremely high churn comprising online news brands of legacy TV and
newspaper companies, has requested the regulator to
IV. Hyperlocal news content services assist its members in growing sustainably
continued to grow
► It
► has requested that the scope and definition of
► 73%
► of online news consumers in Indian languages social media intermediaries be widened to include all
showed interest in hyperlocal news, with the highest platforms which use news generated by others
from Hindi and Gujarati language users26
► It
► believes there is a need for the i nclusion of a
► Local
► apps like Way2News, Lokal, OneIndia, Public, etc., bargaining mechanism, followed by arbitration and best
had built hyperlocal news products to differentiate from efforts, to ensure buyers and sellers reach a negotiated
mainstream news publishers value which is mutually determined
► Indian
► language consumers also relied on homegrown ► It
► has also recommended that to manage the menace
content creators and engaging in local chat groups to of fake news, intermediaries must be made accountable
stay updated about locality and neighborhood news for all content on their platforms along with publishers
24
ABP-EY online news consumption survey 2024
25
Comscore
26
Understanding India’s digital news consumer – Kantar, Google 2023 Reuters
27
digital news report 2023
28
DNPA-EY report: “Monetizing online news”, February 2024
Media & entertainment
Social media III. Indians spent over two hours each day on
social media
I. Social media penetration was 32% in 2023 Hours and minutes per day spent on social media
03:37
Social media penetration (% of population)
83% 02:26 02:23 02:21 02:18
74% 74% 01:56 01:49
70% 66%
62%
32%
Brazil India Worldwide Russia US China UK
We are Social | Meltwater | Based on a survey of 16 to 64-year-old internet users
29
https://www.demandsage.com/social-media-users/
30
Comscore Year in Review Report 2023
31
https://datareportal.com/reports/digital-2023-india
32
Data.ai
33
Industry discussions
34
Kalaari Capital primer
35
Kalaari Capital primer
36
https://www.exchange4media.com/digital-news/connected-tv-has-emerged-as-the-fastest-growing-screen-for-youtube-in-5-yrs-google-india-130076.html
67
Monetization
Digital advertising III. Small and medium enterprise (SME)
advertiser base grew37
I. Digital ad spends grew 15% in 2023 ► We
► estimate that SME advertisers spent INR208 billion
on digital media, predominantly on search, social
2022 2023 2024E 2026E and classifieds – on platforms like Google, Facebook,
Large advertisers 319 368 423 538 Flipkart, Amazon, Just Dial, etc.
► Of
► the total, share of ad revenues generated by 64%
Telecom
e-commerce platforms increased to over INR86 billion, 50%
crossing 15% of total digital advertising (14% in 2022) 61%
E-commerce
38%
II. Search and social dominated 2023 49%
Pharma
36%
Composition of digital ad revenues 47%
FMCG
44%
Audio 1% 3% News
Entertainment 44%
9% BFSI
& sports 27%
35%
Automative
26%
15% E-commerce Consumer 32%
durables 28%
30%
M&E
24%
22%
Education
19%
72% Search & social 16%
Retail
11%
► Search
► and social media across different platforms Dentsu Digital Advertising in India report 2023 and 2022
continued to provide 72% of digital ad revenues
► Two
► categories spent over 50% of their total ad spends
► E-commerce
► advertising crossed INR85 billion to on digital, while another six categories spent over 30%
garner 15% of total digital advertising as more brands
used online channels like Amazon, Flipkart, Jio, Nykaa ► All
► categories increased spends on digital media in
and Myntra etc., to drive sales, these platforms being 2023 as compared to 2022
seen as being closest to the point of purchase. D2C
brands, which reduced spends on TV, continued to use
e-commerce channels to promote their sales
► OTT
► platforms of broadcasters and news companies
garnered 9% of digital ad revenues, led by JioCinema
and Disney+Hotstar
Industry discussions
37
Industry discussions
38
Media & entertainment
20% 19%
18%
14%
6% 5% 5% 5% 5%
4% 4% 4% 3% 2% 3% 4%
1% 2% 1% 1%
FMCG E-commerce Consumer Pharma Automative Telecom Education BFSI M&E Retail Others
durables
2022 2023
Dentsu Digital Advertising in India report 2023 and 2022
► FMCG
► continues to be the leading contributor to the VII.Digital news publishers struggled with ad
digital advertising pie, followed by e-commerce monetization39
► The
► top seven advertiser categories contributed three- ► Content
► distribution of digital news from social media
fourths of the total digital ad spends was affected by the shutdown of Insta articles feature
by Meta, leading to a potential dip in approximately 50%
VI. Various initiatives were made to increase online traffic to news publishers’ platforms
rates
► Frequent
► changes to algorithms used by large platforms
► Premium
► properties across sports, entertainment, and resulted in news publishers generating lower ad CPMs,
news were sold on an aggregate audience basis, like forcing them to rely more on direct deals
television ad sales
► Differential
► pricing was adopted for connected TV
audiences
► Innovations
► like native, contextual and interactive ads
were seen to increase
► Bundling
► of digital inventory with activations, interactive
ads, click-to-buy options and other non-FCT elements
was noted
Industry discussions
39
69
2022 2023 2024E 2026E Subscriptions and subscribing households (in millions)
Video 68 73 82 103
99 97
Audio 2 3 4 6
News 1 2 3 4 80
Total 72 78 89 114
INR billion (gross of taxes) | EY estimates 63
► Video
► subscription revenues grew just 6% in 2023 to 45 43
40
reach INR72.6 billion as premium cricket properties 31
were moved in front of paywalls, reducing the
number of paid subscriptions of Disney+Hotstar by
approximately 19 million40
► Consequently,
► despite growth in paid subscribers across
other OTT platforms, paid video subscriptions reduced 2020 2021 2022 2023
by two million in 2023 to 97 million, across 43 million Paid subscriptions Subscribing households
households in India EY estimates
► Audio
► subscription grew 55% in 2023 as paying
consumers reached around 7.5 million on the back of
significant industry efforts in that direction ► Once
► premium cricket properties were moved in front
► News
► subscription reached INR2 billion primarily driven of paywalls, the number of paid subscriptions for
by premium and exclusive content Disney+Hotstar fell by approximately 19 million41
► The
► percentage of paying subscribers to total OTT ► Paid
► OTT audience could be estimated at between 86
consumers remained less than 15% and 5% for video and 108 million individuals42, lower than our 2022
and audio, respectively estimates due to the fall in paid subscribers and a
crackdown on password sharing by certain platforms
► We
► expect digital subscriptions to grow at a CAGR of
13% till 2026
OTT aggregation services expanded
► Rising
► subscription fatigue to multiple platforms has
created a space for OTT aggregators, allowing users to
discover and view streaming content from multiple OTT
apps in one place
► Players
► in this space include Amazon Prime Video
Channels, Tata Play Binge, OTTplay, Times Group, and
Airtel Xstream
► These
► platforms offer distribution scale to smaller OTT
apps focusing on regional or international content, and
who are looking to create visibility and build reach in the
country
40
Company quarterly earnings reports
41
Company quarterly earnings reports
42
EY estimates based on industry discussions
Media & entertainment
Future outlook
III. Audio subscription reached INR3.4 billion43 Digital segment is expected to grow
► The
► number of monthly music streamers has marginally to INR955 billion by 2026
decreased to 185 million in 2023, compared to around
Digital segment revenue projections
200 million in 202244
► Just
► 4% of streamers paid for a subscription, on the
1,000
back of certain platforms transitioning to paid models,
114
while others reduced features in their free offerings to
800
persuade users to subscribe
89
► However,
► due to the prevalence of several free options 600 78
across all large streaming platforms, all music available
on YouTube, and the prevalence of FM radio in cars and 400 842
on mobile phones, conversion to paid subscribers is 662
576
expected to be an uphill task 200
► Consequently,
► the low profitability of audio streaming
platforms remains a concern and could result in 0
2023 2024E 2026E
consolidation or platform shut downs in the medium
term Advertising Subscription
INR billion (gross of taxes) | EY estimates
IV. News subscription reached INR2 billion45
► With
► the abundance of free news available online and ► We
► estimate that the digital segment will grow to
through aggregators, news subscription was primarily INR955 billion by 2026, at a 13.5% CAGR, reflecting
driven by exclusive and premium content the changing consumption patterns being witnessed
► We
► estimate around 1.7 million paid subscriptions were due to growth in connected televisions, mobile phones
sold in 2023 across all news platforms and broadband connectivity
► Some
► strategies included: ► As
► the second largest segment in 2023, it continues
• Focusing on building peripheral revenue areas like to reduce the gap with television, and we expect it to
paid digital courses and events around areas of become the largest segment in 2024
interest of the news audience
• Building additional pricing layers for value-added
interactive services and newer formats of news
reporting with paid access like audio podcasts, AR/
VR news
• Bundling of news subscription services with
other non-news value-added services like OTT
subscriptions
• International expansion targeting diaspora with
curated content
43
EY estimates
44
Industry discussions; Comscore; EY analysis
45
EY Estimates
71
EY estimates
46
Digital subscription ► In
► the event large platforms launch more affordable
packages (at around INR1 per day, for example) or
aggregators bring the bundled price down to INR2,500
I. Subscription growth will be impacted by or so per year, which is comparable to TV, we estimate
FAST models that the number of households paying for one or more
2023 2024E 2026E SVOD service can reach 100 million by 2026
EY estimates
48
EY estimates
49
73
Content
I. OTT content will break language barriers
► The
► share of vernacular content will increase to 55% of
total content produced as regional OTTs flourish and
achieve scale on the back of dubbing and subtitling. This
could also lead to increased costs for regional content
production
Content efficiency
► Commission TV-content cost-plus models for digital,
with longer seasons to build sticky audiences at lower
acquisition outlays
► Syndicate older OTT content to TV, perhaps even free TV
► Consolidate regional OTT platforms to achieve scale
as regards advertising and manage costs pertaining to
customer acquisition, technology, serving and content
production
► News publishers can build experts across various fields,
creating “news-fluencers” who create communities and
curate opinion
75
TVOD
► Platforms with massive reach like Reels, WhatsApp,
and YouTube will build out TVOD services since their
customer acquisition cost is negligible
► The TVOD opportunity can exist at both the
content and the service level
► TVOD is a well understood concept by Indians, and can
provide the platforms with the opportunity to provide
custom offers, and also build the data required to target
consumers for SVOD services
► Build AI-based image recognition tools to enable
e-commerce from any video feed viz, any clothing item
or accessory from a film can be searched for online and
purchased from the online store
► Enable tipping and gifting for live interactions
Media & entertainment
Trends
Digital infrastructure
Telecom subscriptions increased by 1% to Teledensity is heavily skewed
reach 1.18 billion in 2023 towards urban markets
Urban and rural subscribers marginally increased by 1% and 2%,
respectively in 2023
Mobile subscriber base
(in million)
133% 58%
2022 2023 Urban India Rural India
652 660
518 526
Wireless 1,143 1,154
Wireline 27 32 85%
All India
Total 1,170 1,186
Urban Rural
2022 2023
Press Release No.01/2024 (as on 30 Nov 2023) & No.13/2023 (as on 31 Dec 2022) Press Release No.01/2024 (as on 30 Nov 2023)
Smartphone users had 950 million data subscriptions in 2023, up from 890 million in 2022
950 1,059
890
4.77 hrs
538 574 640 a day
Indians spent 4.77 hours a day on their phones, up
2% over 2022, 5% over 2021, and 9% over 2020
2022 2023 2026E Source: Data.ai
Smartphones (million) Data subscriptions (million)
Source: Smartphones (Comscore, EY analysis); Data subscriptions (Ericsson Mobility Report,
November 2023 and 2022)
Trends
Digital reach
Powered by
The total online audience reached 525 million in 2023
India digital users (million)
510 525
468 480 468 485
445 461
385 406
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Smartphone users Desktop/ laptop/ CTV users Total online audience
Source: Mobile Metrix, Smartphones Only, Source: MMX Desktop, Source: MMX Multi-Platform,
Dec 2019 – Dec 2023, India Dec 2019 – Dec 2023, India Dec 2019 – Dec 2023, India
Smartphone users are de-duplicated unique visitors on Android & iOS smartphones and tablets. Total online audience is de-duplicated reach on
Desktop & Mobile.
2022 2023
Time spent online continued
Total unique Total unique
to grow visitors/
Total
visitors/
Total
Top platforms minutes minutes
Total minutes (billion) viewers viewers
(million) (million)
(in million) (in million)
The reach of online entertainment dipped as users spent more time on other genres
Reach (deduplicated, in million)
483 476 473 456
392 394
2020
2021
2022
2023
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Online entertainment consumers Online news consumers Online music consumers Online gamers
Source: MMX Multi-Platform, Dec 2019 – Dec 2023, India
De-duplicated reach on Desktop/PC/Laptop & Mobile. Entertainment includes video and music.
All data has been provided by Comscore and has not been verified by EY. It has been provided in summary form for representation purposes only.
Media & entertainment
Trends
The Indian app story
Powered by
Indians spent
Indian MAUs on
Mobile game spends 73% more hours on
social media apps
grew 100% in 2023 shopping apps in
grew by 31% in 2023
compared to 2022 2023 compared
compared to 2020
to 2020
Indians spent an average of 4.77 hours per day on their mobile phones
As compared to an average of 5+ hours in the top 10 mobile-first markets
Average daily hours spent on mobile per user
7
6
4.77
4.67
4.55
4.39
5
4
3
2
1
0
Indonesia Thailand Argentina Saudi Arabia Brazil India Mexico Singapore South Korea Turkey
Android phones only 2020 2021 2022 2023
India had the 2nd highest number of …and Indians spent the most amount of
app downloads in the world… time on their phones in 2023…
App downloads (billions) Hours (trillion hours)
111113
98
1.19
1.08 1.04 1.12
0.95 0.98
29
27 26 0.41 0.42
0.4
12 12 13
Downloads across iOS, Google Play and third-party Android in China combined; Time spent is Android phones only; Spend is gross — inclusive of any percent
taken by the app stores
Note: All data has been provided by data.ai and is based on their research. It has not been validated by EY, and presented in summary form for representation purposes only
79
Dating, social media and entertainment were Indians continued to spend most time
the top consumer spend (US$ million) (hours in billion) on social media apps
categories in 2023 Social media I Communication
Social media I Dating
Entertainment I Video sharing
Social media I Live video chat
Social media I Social networks
Entertainment I OTT
Instagram was the most used app by Most searched apps on iOS app store in 2023 in India
younger audiences, while older ones
OTT Short video Dating Sports betting Sports TV
preferred WhatsApp and Facebook
Netflix Moj Tinder Bet365 Fancode
Top apps by MAU by likelihood of use
Hotstar Tiki Bumble Fantasy ESPN
Rank 18-24 25+ Jio Cinema Josh Hinge Bet Sports
1 Instagram WhatsApp Messenger MX Player Public App Grindr Betting DAZN
2 PhonePe Facebook Voot MX Takatak Grindr LLC Bet 365 Bein Sports
3 Flipkart Truecaller Sony Liv App Chingari Grinder Cricket betting PSG
Zee5 Tick-Tock Happn Betting App Fan Code
4 Telegram Amazon
Jeevan-
5 MyJio Facebook Messenger Prime Video Taka Tak Fantasy App FC
sathi.com
Amazon Prime Dating apps Cricket
Indian men and women show Video
Local App
India
Betting Apps
Mazza
distinct preferences for the apps they Disney Hostart Public Gleeden Bet Way Bein
use On iPhones; ranked by average Search Volume by keyword
Top Apps by MAU by likelihood of use Meta had the top 3 apps in India by usage, but
Rank Male Female consumer spend was driven by other apps
1 Facebook WhatsApp Messenger By consumer By monthly By consumer By monthly
Rank Rank
spend active users spend active users
2 Instagram Snapchat
WhatsApp 6 Hotstar Amazon
1 Chamet
3 Truecaller Meesho Messenger
7 Tinder Flipkart
4 PhonePe Myntra 2 Bumble App Facebook Facebook
8 Truecaller
3 Google One Instagram Messenger
5 Flipkart ShareChat
4 LinkedIn Truecaller 9 YouTube PayTm
2023, Android Phone. Average of Demographic Index : measure
of demographic cohort compared to the overall population) among 5 Tango Live PhonePe 10 Instagram Telegram
top 20 apps by average MAU per Genre. Gender represented Consumer spend and MAU based on combined iOS App Store and Google Play; Excluding pre-installed
as Male and Female only and is not representative of all gender Apps. Market-level rankings. App Genres are classified using data.ai’s App IQ taxonomy.as of Jan 4,
identities 2024.
Media & entertainment
Trends
Short video
Powered by VerSe Innovation
The popularity of short video is 2x higher in tier 2 cities
Audience composition
53 Before 32%
bed
Short video
37
33 was consumed
through the day In the
25%
washroom
Between 12%
breaks
16% In transit
2020 2021 2022 2023
Source- Josh internal
Trends
Online news aggregation
Powered by DailyHunt
81% of online news was consumed in Consumers preferred consuming short-
vernacular languages in 2023 form/ quick to read content
71%
62%
53%
49%
Categories
Nation/
Crime and
Audiences Entertainment state/ city Education Sports Political Climate Business
law
headlines
Gen Z 76% 67% 72% 68% 66% 48% 58% 34%
Millennial 74% 71% 76% 49% 59% 65% 43% 43%
GenX and
68% 76% 75% 41% 52% 59% 42% 29%
Boomers
of online vernacular news consumers of online news consumers Online news consumers have more
discover it via aggregator apps or news consume news related to their than one news application on their
publishers’ website neighborhood/ locality devices and like to read multiple
POVs on the same issue
The data has been compiled by VerSe Innovation from various sources including Google Kantar and internal data. It has not been independently verified by EY. It
has been consolidated and averaged for presentation purposes.
Expert
speak
Kiran Mani
JioCinema
Streaming is fast becoming the universal medium of Video streaming is revolutionizing the Indian M&E
storytelling. 2023 proved that audiences value fresh, original sector - with world class storytelling, enhancing choice for
stories from world-class voices. Prioritizing the consumer customers and providing unprecedented reach for Indian
experience is key to sustainable growth. We’re in the midst content. Powered by this tailwind, I am confident that
of a transformation as a global industry, and innovative, Indian stories and storytellers will take centerstage globally.
quality storytelling sits squarely at the heart of it.
In 2024, with India’s digital content consumption booming The lever for the growth of OTT in India will not be sports and
thanks to internet access and affordable smartphones, AI and lower pricing but the penetration of connected TV, habit-
immersive technologies will usher in a new era of storytelling, forming relevant content and content for young adults.
with Bharat driving the industry’s next growth phase.
Sharper investments in adopting new technologies and In the coming years, the streaming industry will be
driving synergies between data and content, will herald shaped by consolidation for scale and efficiency. Yet at
an era of more immersive experiences across platforms. same time, organic growth is likely to stem from the
This evolution will create a playground for segments like experimentation with newer models of AVOD to broaden
online gaming, esports, and short form content to thrive, the top funnel. Aggregation could emerge as the trojan
enabling newer opportunities for the digital ecosystem. horse of growth in reaching the next 100 million users.
Sandhya Devanathan Satya Raghavan
Meta India YouTube
AI, short video, business messaging and immersive tech 2024 is the year AdEx will pivot to becoming a strategic
have fundamentally transformed the future of how studio enabler of business and top line growth for advertisers.
led movies, OTT content and linear TV are marketed and Brand-formance, Generative AI and Micro-market
consumed in India. The power of these tech solutions can targeting are the trends to focus on.
make a material contribution to the industry’s growth.
Whilst consolidation seems to be the theme within M&E in India, External factors such as the ease of paying with UPI, awareness
to thrive for the next decade with a renewed focus on advertising, around subscriptions, and the inclination to pay for experiences
we need to reinforce subscriptions and indeed explore other will contribute to the growth of paid music streaming.
revenue models as Gen AI will lead to abundance in short In addition, the rise of Indian pop stars with strong fan
video and hence dent monetization in the medium term. communities that are seeking ways to seamlessly connect
to their favourite artists, will also boost this growth.
India’s youth are embracing technological advancements, Media today no longer conforms to a type as audiences
disrupting the publishing industry. Projected for a $5.2 demand content that is consistent across platforms and
trillion economy with a low ad-to-GDP ratio, digital personalized. Even traditional media like radio are
advertising is expected to reach 80K crores. Collaborative using streaming, podcasts, etc. to innovate and engage
efforts towards youth inclusion, audience science, and audiences globally. Digital media is further adding to how
disruptive technologies will shape M&E’s future. we connect, engage, and inspire audiences worldwide.
Social first news brands have blurred the fine line between news As short-video content continues to gain popularity, tier II
and content. AI further increases the risk of misinformation cities have emerged as trend setters. In 2024, short-video
spreading on social media posing itself as news. Digital first content is expected to expand its reach, becoming highly
news brands hence need to work on trust and transparency personalized, with technology playing a pivotal role in
to create the next wave of growth. The serious news elevating user engagement and satisfaction.
consumer will reward those who do.
Vishnu Mohta Ajit Thakur
SVF (HoiChoi) Arha Media
The year ahead looks exciting with widespread UPI The big challenge ahead for regional OTTs is finding a
AutoPay adoption, enabling seamless recurring payments road to sustainable profitability. This will not be easy
for a majority of transactions in India. but I believe in the “power of local”. Hybrid revenue
models, smarter content ecosystems to drive down costs,
go-to-market consolidation and sharply focused geo-
targeted storytelling will be important.
This last year has been punctuated by the rapid 2024 will see pivotal change in digital publishing on back
consumer shift towards online video and increasing of adopting and adapting to AI and the disruptions it will
market consolidation. It has also been a year of bring in every aspect of business. Themes of hyper-local
immense reckoning for streaming, with the industry and video will take centre stage in plans.
being forced to ramp up revenue while rationalizing
spends, or quite simply ceasing to exist.
In the next few years, there will be a massive increase in For decades, readers have been accustomed to the unified
micropayment-led monetization for digital influencers voice of newspapers. When they turn to a digital source,
through livestream gifting. This will help grow the creator they seek the same consistency and reliability they’ve
ecosystem in the country by allowing creators to have a come to expect. However, the fragmented nature of digital
steady monetization stream beyond ads. news often falls short of delivering this consistent, one-
experience that newspapers offer.
Alok Jain Gulshan Verma
Viacom18 Jio Ads
Our country is an interesting melting pot of India and 2024 will see two significant but seemingly contradictory
Bharat where technological advances and consumer trends – the growth of Connected TV beyond the top 30M
preferences, stories and audiences, feed off each other. households into mainstream and at the same enabling the
Our industry needs to create platform symbiotic content 250M mobile users who don’t have a 4G connection with
and explore additional business models to profitably their own personalized devices.
operate at scale.
Deepak Salvi
Chingari
Executive summary
Print media is on a recovery path after COVID-19, with newspapers and magazines both registering modest growth. The
segment is likely to hit a steady state of readers in the next three years. That said, this segment of the M&E sector has a number
of opportunities to keep up its growth momentum, including focusing on selective audience segments, innovative pricing and
diversifying revenue streams.
295.7 287.7
250.4 260.0 271.2
227.2
189.9
Advertising
Advertising revenues grew by 4.4% in ► Top five categories contributed 50% of ad revenues
II. English and Hindi publications garnered ► English magazines garnered 46% share of the total
65% of newspaper ad volumes magazine advertising, up from 45% share in 2022, but
still short of their pre-COVID-19 levels
Share
► Four south Indian languages together contributed 24%
Rank Publication language 2022 2023 share of ad volumes in 2023
1 Hindi 38% 38% ► Ad volumes are getting clustered around leaders in
2 English 26% 27% respective categories, following the “winner takes it all”
principle
3 Marathi 9% 8%
4 Telugu 5% 6%
5 Tamil 5% 5%
6 Kannada 5% 5%
7 Gujarati 3% 3%
8 Malayalam 3% 3%
9 Oriya 2% 2%
10 Bengali 1% 1%
Others 7% 8%
Total 100% 100%
TAM AdEX
TAM AdEX
7
Media & entertainment
Circulation
For 2023, neither the Audit Bureau of Circulations’ data Delivery dynamics evolved
on copies, nor the Indian Readership Survey’s data on
readership have been released to date. This section is
► A decline in youth interest in distributing newspapers
based on industry discussions and data available from
has started to post a challenge in ensuring the
publicly available financial statements.
copies are home-delivered each morning to readers,
particularly since newsstands have become less
Circulation revenues grew by 3% effective post the pandemic
in 2023 ► Subscriber acquisition has now become a continuous
activity carried out year-round, rather than during
certain seasons and festivals
Circulation revenues
► Some CEOs we interviewed felt that India has started
89.9
82.3 to reach a saturation point, especially newspaper-
80.3
76.3 reading households, making it challenging to add new
68.2 subscribers, while at the other end, young audiences
entering the workforce have several alternatives for
their news, and hence may not desire to subscribe to a
newspaper as much as they used to a few years ago
Digital quality impacted physical sales EY survey of over 900 online news consumers
Future outlook
Print segment can grow to INR288 billion by 2026
Print segment forward projections
300
0
2019 2020 2021 2022 2023 2024E 2026E
Advertising Circulation
I. Reach will begin to stagnate III. Alternate revenue streams will get
► Print will reach a steady state with a loyal reader base
increased focus
within the next three years, most of which will probably ► Events revenues will contribute to top-line growth,
come from the growing base of educated people particularly in tier-II and III markets, where national
entering the workforce who need news and information mass brands need greater connect
to build their careers
► Newspaper brands could venture into affiliate events
► Duplicated readership (homes with more than one businesses such as weddings, sports, government
newspaper) will continue to fall as cover prices increase events, ticketing, etc.
► Digital efforts will focus on growing app-based
II. Revenues will grow marginally
audiences as compared to fleeting web-based audiences
► We expect the print segment to grow at a CAGR of 3.4% and reduce the dependence on programmatic
till 2026 advertising by doing more direct deals with advertisers
► Advertising will grow at a CAGR of 4.7%, driven by
access to increasingly elusive affluent audiences and
premium inventory formats
► 2024 should see growth coming on account of the
general elections
► Rates for language publications should remain subdued,
as rates for other regional media like OOH, radio and
digital are expected to stay low/ grow minimally in
certain markets in 2024
► Subscription will see a marginal growth of 0.7% CAGR
on the back of cover price increases while market
leaders hold on to readers and other papers see
declining trends
► Circulation will require on a year-round push, to sell
copies and incentivize trial through gifts, free trial
copies and offers
93
#Reinventing print
Focus on career progression Sell the tier-II and III story
► Print will reach a steady state with a loyal reader base ► As consumption grows faster in smaller towns than
within the next three years, most of which will probably in many metros8, the consumption story must be
come from the growing base of educated people communicated strongly to media buyers
entering the workforce who need news and information ► For many regional newspapers, a “state ownership”
to build their careers strategy can help garner a higher share of wallet, where
► Build the narrative of “10 minutes, 20 pages” as the the newspaper brand becomes the window to all media
path to awareness and career success in that state for advertisers
► Flexibility in pricing strategies, selective price increases, ► Build a top-end sports product across the approximately
and strategic partnerships could be a proactive 140-150 days in a year when the Indian men’s national
approach to sustain growth and grow audiences team plays cricket
► Bundling could be developed across corporate clients, ► Consider launching international editions to tap the
D2C brands, digital + physical offers, and other media Indian diaspora
products ► Build communities around Indian themes, which can
► Pricing structures could be developed around B2B/ be monetized globally, e.g., yoga, spirituality, classical
Corporate, D2C bundling, and single-copy sales music, etc.
Rethink digital
► Leverage digital audiences for content commerce and
integrate sales teams for cross-platform advertising
► Roll out a One-India news app with participation from all
leading news brands as a united platform with a massive
consumer base, thereby saving on customer acquisition
costs as well as generating usable consumption and
audience data, particularly in a cookie-less world, where
first party data becomes critical for ad efficiency
► Deploy an online magazine marketplace, for both digital
and physical versions
Espouse sustainability
► Several environmental initiatives can be undertaken
to present a more sustainable product proposition to
readers, from use of solar power, building windmills,
tree-plantations, lower GSM paper use, electric
transportation, reduction of single-use plastic, etc.
Optimize costs
► Generative AI provides publishers the opportunity to
develop hyper-personalized content at scale, while at
the same time reduce the effort pertaining to research,
analysis and editorial
► Infrastructure sharing, on the lines of the tower sharing
companies created by telcos, can lead to significant cost
reduction
95
Trends
Print advertising
Powered by TAM AdEX
(A division of TAM Media Research)
Print ad volumes grew 2% in 2023 Q4 continued to be the highest contributor of
Average ad insertions/ day remained stable across quarters ad volumes to print in 2023
9 9
Ad volumes/ publication
29%
Average ad insertions
9 26% 27%
24% 25%
per day (in 000s)
24% 24%
22%
8 8
8 8 8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan - Mar) (Apr - Jun) (Jul - Sep) (Oct - Dec)
2022 2023
2022 2023
2020 2021 2022 2023 Top five festivals by ad volume Top five categories
Rank Rank
2022 2023 in 2023
Product
714 715 707 702 1 Retail furniture
categories 1 Deepavali Deepavali
Advertisers 140k 138k 150k 151k Independence Navratri/ Durga 2 Frozen foods
2
Day Puja
Brands 170k 168k 185k 185k
Independence 3 Retail televisions
3 Navratri
Day
4 Retail readymade
4 Durga Puja Republic Day garments
5 Christmas Christmas 5 Torches
Other sectors
40%
Share of ad
Rank Top five sectors volumes
Top five sectors 2022 2023
in 2023 contributed 1 Services 16% 15%
60% of total print 2 Education 14% 14%
ad volumes 3 Auto 11% 13%
4 Retail 9% 9%
Top 5 sectors
TAM AdEX’s data pertains to 830+ publications for CY2023. The data has been provided by TAM Media Research to EY and has not been independently verified by EY.
Media & entertainment
Top 5 Share of ad
26%
categories volumes
Rank Top five categories
Print ad volumes
2022 2023
were dominated
1 Cars 5% 7%
by high value
2 Properties/ Real estate 5% 5%
products
Print remains a “go-to” 74% 3 Coaching/ Competitive exam centre 5% 5%
segment for upper Other
SEC audiences categories 4 Two wheelers 4% 5%
Share Share
Rank States Rank States
2022 2023 2022 2023
1 Maharashtra 15% 14% 1 National 48% 49%
2 Uttar Pradesh 11% 11% 2 Maharashtra 11% 11%
9 Kerala 4% 4%
10 Gujarat 4% 4%
Bengali 1% Punjabi 2%
Innovative
Advertising 32% Sales
promotion advertising Multiple
promotion (Newspaper 52%
promotion
publications only)
Discount promotion 32%
3% Others
23%
9% 9%
5% 5% 5% 4% 4%
2% 2%
Figured French Tab L Shape Seamless Print Maskhead Masthead Back page Teaser Others
outline window jacket format inv flap integration jacket
Media & entertainment
Trends
News consumption
In collaboration with ABP News and VerSe
News is consumed at a high frequency 60% of respondents spent more than 20 minutes
Not daily 12% a day consuming news
> 30 min/ day 41%
88% of respondents
19% consumed news at least 20-30 min/ day 19%
Once once a day, while 69%
a day consumed news multiple
10-20 min/ day 21%
times a day 69%
Many times <10 min/ day 19%
a day
Older audiences consumed news more often than Older audiences spent more time consuming news than
younger audiences younger audiences
Social media was the most preferred method for consuming news
Social media 79% 9% 2% 3% 7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Daily Few days a week Once a week Few times a month Almost never
Older audiences accessed news on TV and in print more than younger audiences, while both demographics consumed news
equally on social media, which had the largest reach across both segments
YouTube and Meta were the favourite social Smartphones remain the most preferred
media platforms for news consumption device for online news consumption
Which social media platforms do you use for news content?
YouTube/ Google 68% Smartphone 89%
Facebook 50%
Whatsapp 44% Computer 4%
InShorts 12%
Takatak/ Josh/ Moj/ etc. 10% Others 5%
Entertainment 79% 6% 2% 5% 8%
Podcasts remain a nascent offering for news 81% have never paid for digital news
16% of young audiences pay for one or more digital news
app or websites as against 20% of older audiences
Regular news
9%
podcast listener
Paid for more than one
digital news app or website 11% Paid for only one
8% digital news
Once a week app or website
12%
or more
81%
Never tried
61% Never paid
news podcasts
for digital news
Newspaper
44% 30% 14% 8% 3%1%
(Print edition/ digital subscription)
The data presented in this trendbook reflects the results of a survey conducted by ABP, VerSe (DailyHunt and OneIndia) and EY jointly of more than 900 smartphone-
owning individuals, of which 57% were above 35 years of age. Survey participation links were sent via SMS, WhatsApp, email and digital campaign. Responses presented
reflect percentage of respondents who chose each answer option.
In this section, respondents above 35 years of age are termed “older audiences”; those below 35 are termed “younger audiences”
Expert
speak
Sivakumar S
BCCL
Unfiltered and unverified news creates misinformation In an era of constant change and uncertainty, the
and is degrading the news journalism ecosystem. It’s continuing trust in newspapers is remarkable. As events
important for advertisers to support credible news unfold around us, the timeless appeal of newspapers for
journalism as that provides the environment which their credibility, content, and knowledge is experiencing a
creates the right context for their communication renaissance, leading to increased reader engagement and
campaigns and ensures brand safety. The only way strong financial performance for newspaper companies.
forward for the news industry is to bring back the focus
on trusting verified content from credible news sources.
The Convergence of physical and digital worlds is giving Subscriptions growth will continue to be the top priority
birth to new Phygital models for most industry verticals. for Indian magazine publishers. The industry has taken
Now AI will add another layer to this. This new ecosystem several initiatives to improve the subs eco-system like
will present many exciting opportunities for growth. introduction of ‘magazine post’ with India Post, delivery
partnerships with several e-commerce players, and joint
effort for subs marketing.
Anant Goenka Praveen Someshwar
Express Group HT Media Group
Major print players have had a year of growth in both The M&E sector has seen consistent growth over the
revenue and readership. Digital news is going through last few years. While overall volumes are up, we need
some stress, however. Across both, smaller players will to continue to work to on pricing. In the second half of
consolidate, which is both overdue and welcome. India 2024, it will be interesting to see how AI will impact M&E.
has 500 news channels and 1.5 lakh printed periodicals. Overall I see growth across segments in 2024.
Only those with a clearly differentiated, unique and
consistent value proposition, an honest, “reason to
be”, will thrive.
It has been very encouraging that leading regional Print continues to be an effective and relevant medium
language newspapers have bounced back from circulation for a large number of advertisers because of its credibility
losses due to the Covid lockdown and are holding on to the and reach. I believe the Lok Sabha elections and our
gains. Advertising revenues bounced back faster and are robust economy will greatly benefit Print.
trending higher.
2024 promises to be a year of good growth for print. A We’re actively looking at harnessing efficiencies from
focus on communities and engaging with communities various AI tools across the newsrooms, right from
with purpose and with profitability will help the industry translation to page-making. This is also aimed at helping
to solve for the future. move our journalists up the value chain.
Filmed entertainment
Media & entertainment
Vintage Bollywood | From the private archive of SMM Ausaja & Mona Merchant
103
Executive summary
These are good times for the filmed entertainment segment. Theatrical collections touched unprecedented highs
in the past months, and the increasing affluence of audiences indicates that the growth trajectory will continue.
The industry would undergo changes in the coming times and reinvention would be a core theme across different
channels, content types and operational models.
► 1,796
► films released in theaters during 2023, 11%
higher than in 2022
► Screen
► count increased 4%, but remained at just 9,742,
which shows that the cinema experience remains a
luxury for most Indians
► Admissions
► continued to decline from 944 million to
just over 900 million, a fall of 5%; less than 100 million
people visited a cinema hall in 2023
► Domestic
► theatricals grossed INR120 billion for the first
time, led by a growth in ticket prices
► 339
► Indian films released across 38 countries, up from
33 countries in the previous year
► Digital
► platforms rationalized their direct to digital
premiums; consequently, the number of direct to digital
films reduced significantly, and theatrical performance
became an important element in determining the value
of digital rights
► Broadcast
► rights remained soft as film channels
struggled with ratings and monetization
► In-cinema
► advertising recovered 50%
► We
► expect the segment to grow at a CAGR of 7% to
INR238 billion by 2026, led by increased affluence,
more high-quality mass content, and innovations in
pricing, infrastructure and distribution
Media & entertainment
Monetization
Domestic theatricals ► Gross
► box office revenues increased 14% to INR120
billion in 2023, an all-time high
I. Film releases grew 11% over 20221 ► The
► growth was driven by Hindi cinema’s revival at the
box office
Film releases by language
► Admissions
► continued to decline from 944 million to
1,047 just over 900 million, a fall of 5%3
943
► Industry
► discussions indicate that less than 100 million
people visit cinema halls in India, showing that it
remains a luxury experience out of the reach of 94% of
the population
419 431
► Compared
► to year 2022, Hollywood films’ collections in
India decreased by 23%
194 218
67 100 ► A key trend noted in 2023 was that cinema-goers
waited for movie reviews and only then took a call on
English Hindi South Indian Other whether to watch the film in a cinema, or wait for its
languages OTT or television release. This made a very strong
case for making films “worth it” by providing an
2022 2023 incomparable theatrical experience, and getting the
Comscore marketing right
► 1,796
► films released in theaters in 2023 across
languages and dubbed versions III. Thirty-six4 releases grossed INR1 billion or
more at the box office
► The
► highest number of films were released in Telugu
(317), Tamil (271), Kannada (241), Malayalam and Number of films crossing GBO collection of INR1 billion
Hindi (218 each)
17
► Screen
► count increased 4% to reach 9,742 screens2 led 16
by the north-east, which added 10% new screens and
then Hindi speaking markets, which added 6%
11
II. Box office revenues crossed the INR100 8
billion mark for the second consecutive year
Theatrical revenues by language 3 3 3
53 53 52 1 1
19 217 105
16
57
151
Released in theaters first Released directly
and subsequently on OTT on OTT
74 6
3 2022 2023
Estimates by content services team of EY
► Over
► 400 films released on digital platforms in 2023, a
2020 2021 2022 2023
growth of 30% over 2022
No. of films released abroad GBO (INR billion)
► The
► number of direct to digital releases almost halved from
INR billion (gross of taxes) | EY estimates
105 in 2022 to just 57 in 2023 as platforms rationalized
their direct to digital premiums
► 339 films released across 38 countries, up from 33
countries in the previous year ► While
► digital rights volumes increased a healthy 30%, the
average spend per film came down as platforms focused on
► They
► generated a gross box office collection of INR19 tent pole properties and lower cost properties, but reduced
billion, 19% more than 2022 focus on mid-range content, resulting in a relatively muted
► While
► significant progress has been made in growing 8% increase in digital rights values over 2022
overseas theatricals independently, further tapping into ► The
► subscription model is expected to remain a key driver
the Chinese market can be a crucial growth driver of growth for OTT platforms, propelling the expansion of
this rapidly evolving market, and hence the demand for
digital rights is expected to remain robust in the near future
Broadcast rights were impacted by
lower monetization on film channels In-cinema advertising recovered
► Film
► viewership remains a very important part of ► INR7.5
► billion was generated from cinema advertising in
television; film channels generated 26% of total TV 2023, a 50% rise attributed to successful movies and the
viewership in 2023, up from 25% in 20225 scarcity of avenues to reach affluent audiences
► However,
► monetizing films was a challenge in 2023 due
to fragmentation of audiences which, according to several
industry sources, led to lower ratings per new movie
► Several
► film channels experimented with simultaneous
release of TV premieres on multiple movie and/ or GEC
channels, by increasing marketing spends and increased
interactivity
► The
► number of films shown on television also experienced
a 4% decline in 2023 compared to 2022, led by
international films (-9%) and Hindi language films (-6%)6
► Consequently, broadcast rights grew just 9% in 2023
5
EY analysis; BARC
6
TAM AdEX Cinema data across 600+ TV channels. Hindi includes other
language movies dubbed into Hindi
Media & entertainment
7
EY report “India @ 100”
107
broadcast market
► Broadcast
► rights will remain muted as they have
become a distant third window after theatrical and
digital releases. Further, films viewership will be
determined by content type, and will not grow until film
content is created for the masses as against the classes.
In effect, content that appeals to multiplex and OTT
audiences will be different than content that appeals to
single-screen and television audiences
► Hence,
► we expect that a separate set of films may
be commissioned for Tier-III markets and television
audiences, including FTA audiences, with separate
themes and lower price points
► At
► the other end, tent pole films will continue to be
produced but will be released on a wider swath of TV
channels, with staggered windows and pricing options
Media & entertainment
Trends
Film exhibition
Powered by
South Indian
languages 17%
Tamil
Malayalam
Kannada
Hindi
English
Marathi
Bengali
Gujarati
Bhojpuri
Punjabi
Oriya
Other
languages
2022 2023
6%
4%
2%
Kerala
745 (-6) Tamil Nadu
1,190 (73)
All data has been provided by UFO Moviez and has not been verified by EY. It has been provided in summary form for representation purposes only.
Media & entertainment
Trends
Film
Powered by
271
241
238
236
233
228
223
218
218
207
204
199
194
170
152
109
106
103
103
102
102
100
93
89
84
76
74
72
71
68
67
64
61
55
55
54
40
40
39
38
37
34
27
22
21
17
14
10
Telugu Tamil Kannada Malayalam Hindi English Bengali Marathi Gujarati Punjabi
Footfalls fell 9%
Footfalls (million)
1560 1460
994 900
387 418
32
24
Average ticket prices increased by over 20% Single screens accounted for 48% of
With multiplex rates more than double that of single screen rates revenue in 2023
on average
Average ticket price in INR Gross box office revenue (INR billion)
140
66
61 60
111 58
53 52
78 76
62
58
55 54
52
39
36
19
16
12 11 10
9 7
6 4 4 6
1 1 2
Hindi films South Indian language films Hollywood films Other language films
(excl. Hindi dubbed)
Trends
Box office
Powered by
Hindi films regained their leadership at Seven Hindi films featured among the
the Box Office in 2023 top 10 grossing films of 2023
South Indian language films lost 8% revenue market share There were just four in 2022
from 2022
Gross box office (INR billion) of the top 10 films of 2023
Box office share by language
Jawan 7.3
5% 4% 6% 7% 4% 3% 5% 5%
Animal 6.4
11% 13% 11% 15% 11% 12% 9%
12%
59% 42% Pathaan 6.3
39% 39% 42% 36% 37% 50%
Gadar 2 6.2
Salaar: Part 1 -
Ceasefire 5.1
Jailer 4
45% 44% 41% 45% 44% 44%
Leo 4
33%
27% Adipurush 3.2
Tiger 3 3.2
The Kerala Story 2.6
2015 2016 2017 2018 2019 2020 & 2022 2023
2021 Hindi language film Telugu language film
Hindi South Indian languages* Hollywood* Others Tamil language film
*Hollywood includes all language versions; South Indian languages include Cumulative box office revenues of each film in all languages in which
Telugu, Malayalam, Tamil and Kannada it was released
Hindi cinema crossed INR50 billion Average ticket price (ATP) grew 10%
for the first time compared to 2022
Box office contribution of Hindi cinema increased the
Gross box office collections (INR billion) ATP at an all-India level
54 Average ticket price (INR)
130
119
35 104 106
92 96 95 91 87
21 23
17 20
12 11
6 6 8
3
Hindi Hollywood Tamil Telugu Malayalam Kannada
2022 2023
2015 2016 2017 2018 2019 2020 2021 2022 2023
Hollywood films command the highest ticket prices, followed by Hindi language films
ATP of south Indian language films is approximately half that of Hindi films
ATP by language (in INR)
241 237
187 196
Hollywood* Hindi All India Bengali Kannada Punjabi Marathi Telugu Tamil Gujarati Malayalam Others
2022 2023
*Hollywood includes all language versions
All data has been provided by Ormax and has not been verified by EY. It has been provided in summary form for representation purposes only.
113
Expert
speak
Ajit Andhare
Viacom18 Motion Pictures
2023 was the year when Hindi cinema answered the call
and reclaimed its lost glory. The Industry will continue to
see a shift towards a more cinematic storytelling, creation of
greater franchises and innovations. Growing footfalls back
to the 2019 high of 340 million remains the key challenge for
the industry amidst the presence of OTTs.
The Indian box office is among the fastest to recover globally Technology and connectivity are propelling consumption
and recorded the highest ever gross collections in the past growth and shaping the emergence of new formats and
year. This re-emphasises the resilience of the industry and the platforms in the M&E sector, spanning both traditional and
love for movies our viewers have, and we look forward digital mediums. In traditional media, we are seeing a
to carrying this momentum into the next year as well! steady transition of viewership towards FTA, while on the
digital platforms, there is a shift towards shorter formats,
with an increasing share of audience engagement.
Shibashish Sarkar
Devang Sampat International Media
Cinepolis India
Acquisition Corp
The Indian box office is among the fastest to recover globally and In today’s uncertain landscape, we stand at a threshold of
recorded the highest ever gross collections in the past year. 2024 endless possibilities. History will applaud today’s filmmakers
looks equally exciting for us, particularly due to the blockbuster for ushering in an era where creativity, technology, and
sequels coming from the South Indian cinema industry! audience engagement converged to redefine entertainment.
Cinema will continue to be split between large format audio- 2023’s record box office put paid to the premature
visual spectacles playing out in theatres and long-format obituaries of Hindi cinema. However, many areas of
narratives on streaming platforms. All of this will be propelled concern need addressing across exhibition, television and
by technology, especially of an immersive nature, while stories streaming before producers can truly celebrate.
will gravitate towards being regional and rooted, while being
made for global resonance.
Apoorva Mehta Rajesh Mishra
Dharma Productions UFO Moviez
In the global media landscape, India stands out by In 2023, despite the cricket world cup, the industry thrived on
merging fresh storytelling and technology to transform captivating content that resonated well with audiences. The
entertainment… making it immersive, inclusive, and revival of Hindi Cinema marked a pivotal moment, accompanied
globally resonant. by a notable increase in the number of screens. This progression
highlights the industry’s resilience and adaptability, laying
the groundwork for an upward momentum.
Everything will now be about ‘pull’ content (defined by the Big spectacle movies are drawing people back to the
story and the maker) and ‘push’ content will be relegated theatre as much as women-led stories. Cultural lines are
to the minimum. Focus on format-agnostic sports content blurring and the number of pan-India films is growing as
(films, docu-series, television, etc.) will gain traction and regional movies continue to tell entertaining stories with a
become one of the key differentiators across platforms. universal acceptance.
Box-office’s stellar run in 2023 reiterates our belief that Achievements at the Oscars signal a growing recognition of
the Indian audience is hungry for good quality content India’s diverse storytelling prowess, spanning fiction, non-
that is best experienced on the large screen. Going ahead, fiction, and animation. Blending local stories with innovative
film producers and exhibitors should explore innovative technology promises to elevate Indian cinema to new heights.
marketing strategies for upcoming movies.
Vivek Krishnani
MovieVerse Studios
Executive summary
It is not just a game! The gaming segment in India is now a formidable force in the M&E sector, displacing filmed
entertainment to become the fourth largest segment. Almost a quarter of the 455 million gamers in India are engaging
with online games daily. The robust growth of this segment is also expected to continue through to 2026, where it will
become a sector worth INR388 billion. While there are pockets of distress in some States with respect to administrative
oversight, the segment has a positive outlook in the coming times as the market now has greater acceptance towards
paying for online gaming and the user base steadily growing to become the number one online gaming country in the world.
► In
► 2023, the number of online gamers in India reached ► With
► multiplayer games making a comeback, prominent
455 million, which is the second-largest gaming user esports titles almost doubled to 19 in 2023, with 1.8
base globally, after China1 . Of this, we estimate that million Indians participating in them, and which were
100 to 110 million play online games daily available across 20 platforms
► India
► is the world’s biggest market by mobile game
downloads2 , and hyper-casual games were the most
downloaded genre
Future outlook
► Sustained
► marketing over the years along with ► We
► expect the segment to grow at a CAGR of 21% to reach
increased awareness of online gaming is fueling growth INR388 billion by 2026
from non-metro and regional language markets
► The
► fastest growing segment would be in-app purchases
(27% CAGR), followed by fantasy sport (23%) and then
rummy and poker (19%)
► Share
► of RMG will be 83% of the total revenues
► In-app
► purchases will grow significantly
► Consolidation
► can be expected, as smaller, less profitable
companies struggle to manage the implications of GST
1
India Games Market Report - Research and Markets; EY analysis; Industry
discussions
► Rollout
► of 5G across the country will improve the online
2
Data.ai – State of Mobile Gaming 2023 | Android only gaming experience for users
Media & entertainment
Reach
Online gamers grew 8% in 2023 Hyper-casual games were most
downloaded
Online gamers in India (in millions)
Downloads Share of IAP
491 Rank Game genre
455 (% share) revenues
421
390 1 Hyper-casual 25% <1%
2 Simulation 20% 7%
3 Action 10% 3%
4 Table-top 7% 4%
5 Racing 7% <1%
Data.ai | Downloads across iOS and Google Play. Does not include side-loaded apps
2021 2022 2023 2024E
EY estimates
► Hyper-casual
► games were both most downloaded, but
had a minimal share of in-app purchases
► Online
► gamers in India grew to 455 million in 2023 and
are expected to reach 491 million by 20243 ► Simulation
► games had the highest revenue share
among the top five genres of games
► Apart
► from the growth in smartphone users in India of
over 30 million, low data charges and increasing per ► In the case of casual games, the platform strategy
capita income, the popularity of gaming influencers worked and increased the customer stickiness and
(which attract significant followers on social media and lifetime value, as gamers stayed on the platform for
short video platforms) contributed to attracting new longer across more number of games
cohorts of players ► Some casual game companies we interviewed had 80%
► Battlegrounds
► Mobile India (BGMI), a version of PUBG of their consumers from non-metro markets
Mobile exclusively available in India, was relaunched
in May 2023 after being banned for over two years.
It has since then garnered the top rank in app store
downloads in India and has around 100 million
cumulative players4
► The
► proximity to online games increased in 2023 from
just gaming apps to media apps (entertainment, sports,
news and music), social apps and e-commerce apps,
as gaming was found to help with stickiness and aid in
marketing content
► With
► online gaming players now being charged 28%
GST on the full face value since 1 October 2023,
there was a sense of fear that this would deter gamers
playing online real money games. However, online
gaming companies reworked their business models to
either absorb or minimize the impact to gamers, and
we understand that for large companies, the impact
was felt for a short period of less than a quarter during
2023, though smaller gaming companies did wind down
operations
3
EY estimates through various secondary sources and consensus-based industry discussions
4
https://www.linkedin.com/posts/nileshdeshmukh14_impact-of-bgmi-relaunch-in-india-activity-7133723763719725057-g7uZ/
119
Monetization
Transaction-based game revenues Casual gaming grew 24 % in 2023
crossed INR180 billion
► About
► 90 million gamers reportedly paid for online I. In-app purchases
games in 20235
► In-app
► purchases revived significantly due to the launch
► Transaction-based
► game revenues increased by 21% to of BGMI during 2023
reach INR182 billion
► Shooting
► and Strategy are the top two game categories
► Growth
► in rummy and poker was driven by: where gamers spend6
• Rummy was permitted again in Tamil Nadu, always a ► Younger
► gamers are more inclined to play party,
key market, and new markets like Odisha opened up ► simulation and shooter-based games7
► Growing interest in online competitions with significant ► Older
► games continue to drive mobile game
cash rewards monetization, too8
► Easy
► accessibility, connectivity, payments, withdrawals
II. Advertisement
► Growing
► awareness and comfort to transact online
► At
► a 100 million DAU, gaming provided a significant
► Incentives
► to attract and retain players opportunity for brands to connect with upwardly mobile
► Fantasy
► sports grew on the back of the IPL and the CWC, young audiences, though yields remained low
where India’s performance drove both viewership and ► In
► 2023, the hyper-casual category saw the highest
game play. In addition, fantasy sports provided a vast number of new games released and the most
array of emerging sports including football, basketball, downloads, with many incorporating advertising
kabaddi, etc., which enabled it to gain visibility and an revenue into their business model
increase in users
► As
► per EY-LOCO gamer survey, 58% of respondents were III. Esports
ok to spend money to play real money games while 52% ► With
► multiplayer games making a comeback, prominent
of respondents had paid to play fantasy sport in 2023 esports titles almost doubled to 19 in 2023, with 1.8
► Google’s
► decision to permit listing of skill-based real million Indians participating in them, and which were
money games on its app store has widened the reach for available across 20 platforms9
many other games that charge participation fee, and this ► Game
► streamers also saw an increase in viewership of
segment saw 20% growth 20% to 25%10, particularly in Tier-II cities
► As
► per the EY-Loco gamer survey, 78% of respondents
had participated in esports events and they all viewed
at least one tournament a month
5
https://www.statista.com/statistics/1064010/number-of-online-gamers-india/
6
Data.ai – State of Mobile Gaming
7
Data.ai – State of Mobile Gaming
8
Data.ai – State of Mobile Gaming
9
NODWIN Games estimates
10
Industry discussion
Media & entertainment
Party – Luck
Data.ai | Consumer spend across iOS and Google Play. Does not include 3 Coin Master Israel
side-loaded apps Battle
► Shooting
► games remained the favorite in India, Candy Crush
4 Match – M3 Sweden
generating 24% of in-app purchase revenues, followed Saga
by strategy games
Call of Duty: Shooting – Team
5 China
► Relatively
► newer genres like match and party Mobile Deathmatch
aggregated over 20% of in-app purchase revenues
between them New releases in 2023
Whiteout Strategy - 4X
1 China
Survival March-Battle
Monopoly
Party - Luck
2 GO: Family USA
Battle
Board Game
Call of Strategy - 4X
3 Poland
Dragons March-Battle
Strategy - 4X
5 Viking Rise Singapore
March-Battle
Operating environment
Game viewership continued to grow India’s role in the international
► Game platform Loco has estimated that online
gaming landscape11
viewership grew 20% in 2023
► India
► is poised to become world’s largest gaming hub12
► It believes that 4% of total YouTube viewership is also
► Digital
► Gaming India Expo 2023 saw participation
related to gaming
from leading gaming companies across the world and
► Watch parties are growing, where groups of fans watch showcased work on leading technologies like AR/ VR,
games together and interact with each other during blockchain, NFT, robotics, digital gaming, and more.
game play India has seen the emergence of over 1,000 gaming
studios and game development companies13
► Sony
► Interactive Entertainment (SIE) launched the Sony
India Hero Project to support Indian game developers14
► The
► Krafton India gaming incubator fund has made an
outlay of $50,000 to $150,000 per investment15
► Kratos
► Studios’s has committed to invest INR500
million to shortlist the first set of 10 to 15 studios by
March 2024 to help them bring their games to the
blockchain16
► Pune-based
► game development firm SuperGaming
recently partnered with the US firm Epic Games to
make its made-in-India battle royale game Indus,
playable in Epic’s Fortnite17
11
Gaming Studio Setup Organization Process: Must-Haves | Newxel
12
EY estimates, industry discussions, https://www.newindianexpress.com/business/2022/Aug/10/india-gaming-industry-poised-to-become-worlds-largest-gaming-
hub-2486156.html
13
https://www.convergenceindia.org/pdf/2023-Post-Show-Report.pdf
14
https://www.playstation.com/en-in/local/india-hero-project/#:~:text=What%20is%20India%20Hero%20Project,Entertainment%20for%20Indian%20game%20develop-
ers.
15
https://www.businesstoday.in/technology/news/story/krafton-india-launches-gaming-incubator-to-boost-local-ecosystem-upto-rs-124-crore-on-offer-400788-2023-
10-05#:~:text=Selected%20participants%20will%20receive%20guidance,)%2C%20depending%20on%20their%20requirements.
16
https://www.moneycontrol.com/news/business/indigg-owner-kratos-studios-allocates-rs-50-crore-to-help-studios-bring-their-games-to-blockchain-11647071.html
17
https://www.moneycontrol.com/news/business/supergaming-takes-made-in-india-title-indus-global-with-fortnite-integration-11669491.html
Media & entertainment
Updates in 2023:
► Karnataka: The amendment allowing online gaming was ► Gujarat: An appeal against the single judge order
struck down by the State HC in February 2023 and is allowing online poker is pending before the division
currently under appeal in the Supreme Court bench of the HC
► Meghalaya: The Meghalaya Regulation of Gaming Act, ► Odisha: Under appeal before the Supreme Court
2021, was repealed in November 2022
► Rajasthan: The draft bill proposing a licensing
► Tamil Nadu: The amendment allowing online gaming regime for online fantasy and esports is still under
was struck down by the State HC in August 2023 consideration, no final law has been enacted
► Andhra Pradesh: Under appeal before the Supreme ► Kerala: There is no official stance or proposed
Court legislation regarding online gaming as of now
► Telangana: Under appeal before the Supreme Court ► The Indian government is currently considering a
central regulatory framework for online gaming, which
could potentially supersede state-level bans30
18
Amendment of the Karnataka Police Act, 1963*/ Karnataka Police (Amendment) Act 2021
19
Meghalaya Regulation of Gaming Act, 2021
20
Amendment of the Gambling and Police Laws, 2021*/ Tamil Nadu Gaming and Police Laws (Amendment) Act, 2021
21
Amendment to the AP Gaming Act 1974/ The Andhra Pradesh Gaming (Amendment) Act, 2020
22
Amendment to the Telangana Gaming Act of 1974/ The Telangana Gaming (Amendment) Act, 2017
23
Gujarat Prevention of Gambling Act, 1887
24
Nagaland Prohibition of Gambling and Promotion and Regulation of Online Games of Skill Act, 2015
25
Sikkim Online Gaming (Regulation) Act, 2008
26
Assam Game and Betting Act, 1970
27
Orissa Prevention of Gambling Act, 1955
28
The State of Rajasthan published a draft of Rajasthan Virtual Online Sports (Regulation) Bill proposing a licensing regime to regulate pay-to-participate fantasy and
esports
29
While an amendment has been proposed and reported about in the media, no draft has been circulated
30
https://economictimes.indiatimes.com/news/india/online-gaming-talks-begin-for-central-regulatory-framework/articleshow/94747171.cms?from=mdr
123
Future outlook
We expect the segment to reach ► The application of GST at 28% on the face value of bets
has already resulted in lay-offs and the closure/ sale of
INR388 billion by 2026 some small gaming companies
Revenue projections ► FDI will also revive only post the clarity on retrospective
taxation
66
Consolidation can be expected
► The
► impact of the GST regulation has resulted in gaming
companies absorbing the impact to protect consumer
47 traffic and spend, which has impacted margins
significantly, putting a few smaller gaming companies at
38 risk of survival
321 ► This
► will result in more deals in the segment in 2024,
and we expect the market to stabilize with two to three
223 fantasy sport players, one to two players each in rummy
182 and poker, and one or two multi-game platforms
► Once
► clarity on retrospective taxation is resolved,
international interest will be significant, given limited
opportunities for growth in foreign markets
2023 2024E 2026E
In-app purchases will grow
Real money gaming Casual gaming
significantly
INR billion (gross of taxes) | EY estimates ► As
► the friction around digital payments reduces, and
as consumers’ willingness to consider gaming a digital
► We
► expect the segment to grow at a CAGR of 21% to
phone offering grows, the ability to generate revenues
reach INR388 billion, provided no retrospective tax
from in-app purchases (both strategic and impulse buys)
actions are taken on the companies, on account of:
will increase
• Smartphone users, who are expected to grow from
► We
► estimate in-app revenues around casual games to
574 to 640 million by 202631
double to INR28 billion by 2026
• Wired (or similar) broadband, which should almost
double from 38 million to 68 million
Many new games will launch
• Growing per capita incomes and low data charges
► We
► expect several foreign games to launch in India as
► The
► fastest growing segment would be in-app game companies look for scale and a growing gaming
purchases (27% CAGR), followed by fantasy sport (23%) audience, even at lower ARPUs
and then rummy and poker (19%)
► The
► implication of this will be improved game
► Share
► of RMG will remain constant at around 83% of development, marketing and management services skill
the total revenues sets being built-up in India
► In the event the key states of Andhra Pradesh and
Telangana permit games of skill, and FreeFire is Gaming on ONDC and other apps
permitted to return, the growth can be higher
► Many
► CEOs we interviewed found the current play store
Retrospective taxation can shut charges eating into their profitability, and were looking
for innovative ways to manage the same
down the segment
► Accordingly,
► we see many gaming companies using
► In the event the government continues with its desire to alternative models to collect subscriptions and in-app
change taxation policies retrospectively, most gaming purchase revenues, and could look to alternate stores
companies we met claimed that they would end up and collection platforms for the same, including web-
shutting down their operations as they would not be based play stores
able to comply
31
EY estimates
Media & entertainment
#Reinventing gaming
Build loyalty Go regional
► Most
► players tire of their preferred games within nine to ► Over
► half the content made for OTT platforms is now in
12 months32 and hence, rolling out a loyalty program, regional languages apart from Hindi33 , and dubbing and
both within a game and between different games, titling it makes it move across language boundaries
will become more critical, as game development and
► Games
► can increase their reach and shelf life when
marketing costs rise
dubbed, titled and skinned across difference regional
► Another
► important aspect will be to incentivize languages and provided with the relevant cultural
continued game play, rather than withdrawal of context
winnings, to minimize the GST impact under the new
rules Gamify education
► Consider
► web3.0 integrations - convert in-game assets
► India’s
► need for quality education remains high, as it
(virtual goods or NFTs) into money and rewards
aims to remain and grow as the back office of the world,
for which it needs to upskill many youth
Enable AI ► The
► edu-gaming market will witness increased interest
from investors as it aims to bring this skill gap that
► Use
► of AI in a Non-Player Character (NPC) can impacts millions, in India and abroad
significantly enhance the gaming experience. AI will
allow NPCs to adapt to players’ behaviors, making
gameplay more engaging and personalized Go global
► With
► the increasing adoption of AI by gaming
► It
► is time to use the tech prowess of India to become the
companies, we can expect to see an evolution in
gaming back office of the world
character development, innovative game mechanics,
and more immersive game worlds, apart from storylines ► With
► over 1,000 game development companies34 ,
that dynamically change India’s ability to develop games, market them, and
manage daily operations can become an added source
of export revenues for India
Increase non-player engagement ► Building
► talent, particularly in terms of building high-
end AAA games, will be required at speed
► As
► heroes are created, the legions of fans will grow, and
to monetize them, the need is to innovate with ideas like
exclusive passes, fan loyalty programs, watch parties, Protect local
VIP passes etc.
► Several off-shore gambling sites continue to exist,
resulting in illegal game play and diversion of funds
Build out cloud gaming to grow outside India
32
EY-LOCO survey of gamers
33
Estimates based on EY’s content services team
34
Industry discussions
125
Trends
Esports in India
Powered by NODWIN Gaming and AFK Gaming
Total participation in Professional esports teams Prominent esports
esports tournaments will grow in 2024 as major titles are expected to
touched 1.8 million titles are expected to return consolidate
(across prominent titles and
competitive levels) Number of prominent titles
Number of professional teams
Total participation (000s) (mobile + PC + console)
2,500 35
19
14
13
1,790
22 10
9
1,000
600
300
2020 2021 2022 2023 2024E 2023 2024E 2020 2021 2022 2023 2024E
240,000
Average minute
8,000 13 14
220 181 220 12
6,500
150 150 8
2020 2021 2022 2023 2024E 2023 2024E 2023 2024E 2020 2021 2022 2023 2024E
...which will impact brands India is expected to have 20 Women fan base is
investing in esports international teams by expected to remain in the
2024 22-25% range
2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E
All data has been provided by NODWIN Gaming to EY and has not been independently verified by EY. It has been presented in summarized form for
presentation purposes only.
Media & entertainment
Trends
Online gamer survey
Powered by
Respondent profile
48% respondents spent over an hour per A third of respondents played games at
gaming session any time during the day, similar to last year
Time spent on each play session When do you play games?
(% of respondents) (% of respondents)
38%
34% 34%
27%
20% 19%
14% 14%
Game choice
44% played for fun and relieving stress
15% 15%
11% 7% 5% 3%
For fun and Competitive sport Want to pursue it Passion for My friends and To win To sharpen
stress relief and thrill as a career option the game acquaintances play it cash prizes my skills
and gain fame
Graphics, idea and community were all important factors in choosing games
Parameters which influence choice of game (% of respondents)
35%
28%
16% 14%
7%
All the above Graphics should Server Main idea Size of the gaming
be optimizable performance of the game community
127
Popularity and play store ratings remained Multiplayer games were the most
the most important factors in choosing games preferred
How do you decide on which game to play? % of respondents who played games
(% of respondents) 60%
32%
23%
18% 28%
14%
11%
4% 3% 3%
2% 2%
Popularity Play Recommended Own Recommended Reviews Multiplayer Casual/ Fantasy Other Online Online
store by a popular selection by friends on games hyper sports skill games card
rating gamer during forums casual based of games
live streams gaming real chance
money
games
40% 49%
Almost At least once A few times A few times Not usually Once or 3 to 5 times >5 times
daily every week every month this year daily twice a day
43% indicated that their playing time 53% of respondents grew bored of their
increased over last year games within a year
20%
18%
19% 15% 15%
Esports
78% of respondents had participated in 20% viewed more than three esports
esports events tournaments in a month
17% higher than in 2022
Participation in esports tournaments in 2023 How many esports tournaments do you view in a month?
(% of respondents) (% of respondents)
47%
51%
33%
20%
22%
18%
9%
Yes – both Yes – online Yes – offline No 1 tournament/ 2-3 tournaments/ > 3 tournaments/
online and month month month
offline
17%
13% 11%
30% of respondents watched game 45% spent more than two hours watching
streams daily game streams
30%
24% 25%
20%
18%
19% 20% 20%
13%
11%
At least At least once At least once At least once Not even 30 min 1 hour 2 hours 2-4 hours >4 hours
once daily every week every month this year once
129
Monetization
54% of those who paid to play games spent less
58% than INR500 per month
Respondents were okay with How much do you spend on in - app purchases in a typical month?
spending money to play (% of respondents who paid to play)
real-money games 54%
19% 29%
17%
Higher than last
year’s survey
Risk of fraud and addiction were the top 52% of respondents had paid to play
reasons for not playing real money games fantasy sport in 2023
Reason for not playing RMG Money spent on fantasy sports in 2023
(% of respondents who did not play in 2023) (% of respondents)
33%
25% 24% 48%
18%
26%
17%
Risk of Risk of Real money Risk of losing
fraudulent/ addiction platforms money I 9%
bot-driven are not need for
transactions trustworthy other
purposes > INR5,000 INR1,000-5,000 < INR1,000 Nil
34%
34%
32%
Bhavin Pandya
Games24x7 Nitish Mittersain
Nazara Technologies
‘Gamertainment’ is the future of entertainment - The integration of AI and machine learning will
Interactive, personalised, immersive and deeply engaging personalize gaming experiences, making them more
- thereby bringing about behavioural changes and engaging, while blockchain promises enhanced security.
shaping choices in people around the world. In India, 5G will significantly reduce latency, opening up new
mid-core games and esports will see an increasing trend possibilities. These technological shifts, coupled with
in engagement. India’s digital adoption and regulatory clarity, position
the industry positively, and we anticipate a surge in both
casual and real money gaming.
Akshat Rathee Anirudh Pandita/
NODWIN Games Ashwin Suresh
Loco
Worldwide gaming and esports markets underwent In 2023, the Indian govt. laid out clear guidelines for
massive consolidation in 2023, which will accelerate in releasing games and the AVGC committee took shape.
2024. The business model will evolve to address a wider The successful return of the most popular title in Indian
TAM as gamers become a superset indicative of youth. gaming took place. From a consumer perspective, we
Esports will become closer to sports entertainment like saw strong willingness to pay - both for games and live
Formula 1 with a multi-faceted entertainment approach. streaming. The combination of clear regulations and
appetite to pay, creates promising conditions for growth.
The future of online gaming in India is a dynamic Last year was disappointing for the industry, no hiding
tapestry of ‘Made in India for the world’ innovation, that fact, however as gamers we are optimists. We look
driving unparalleled IP creation and leveraging deep forward to the future and believe that everyone will find
tech to redefine interactive experiences. It’s not just about their growth path.
domestic consumption, but also about exporting our
creativity and expertise globally. India stands poised to
emerge as a powerhouse in the global gaming arena.
Gaming and game development will be integral for India Esports has firmly cemented its status as a mainstream
as it grows to a US$5 trillion economy. Taxation clarity sport in India, with India’s participation at the Asian
and a progressive regulatory regime centred around Games last year. States are actively getting involved in
user protection and innovation, will enable a new era for the development of esports infrastructure, establishing
the creation of innovative gaming products. Mobile-first academies, and organizing tournaments. The inclusion of
gaming will continue to be the key segment and the way esports in educational curriculums is empowering youth
forward for India to become a key player globally. and legitimizing it as a career option.
Animation and VFX
Media & entertainment
Executive summary
The trends in the animation and VFX space in the past few months indicate a mixed sentiment. While demand in the
animation segment shrunk, the overall VFX segment in India grew despite a global slowdown in demand. The major
developments in the mergers space had a major role to play in projects getting delayed in the animation segment.
Production delays as a result of strikes at the global level also played a significant role. With the dust settling down in
FY24, demand and activity will likely pick up in this segment as demand and consumption patterns continue to evolve.
The Indian VFX segment grew 10% amid a Animation VFX Post-production
slowdown in global demand INR billion (gross of taxes) | EY estimates
► Industry strikes in the US caused major disruptions,
leading to over 48 film and 46 TV show delays worldwide, Key drivers for the projected growth include:
which impacted outsourcing volumes to India
► Production
► will return to its regular pace by mid-2024,
► Cost management at major OTT platforms had an impact ending the slowdown in commissioning new projects noted
on the VFX segment’s performance considering OTT in 2023
constitutes about 40% to 50% of the overall segment
► Government
► incentives will boost competitiveness,
revenue
attracting foreign collaborations with up to 30% cost
► Domestic VFX demand, which has a 35% share of segment reimbursement
revenue, thrived due to increased VFX usage
► US
► demand for adult animation surged by 152%, opening
► Extensive application of VFX and digital effects in ad films significant market opportunities for outsourcing work
added between 5% and 10% to VFX revenue, indicating a
► More
► industry partnerships to enhance global co-
potential area of growth
production, financing opportunities, and demand for VFX
► Virtual production made a start, but is characterized by and animation services
longer than expected ROI timeframes, high costs and rapid
► The
► talent gap hindering animation and VFX is getting
advancement of technology
bridged through partnerships between major studios and
educational institutions
Media & entertainment
Animation
Indian animation contracted by 5% II. The slump in the domestic demand
increased interest in international projects
Animation revenues beyond traditional western markets
► Indian
► studios are increasingly participating in key
international events such as MIPCOM, MIP TV, Annecy,
38 40 and Kidscreen
36
31 ► This
► shift reflects their pursuit of global opportunities
and aligns with new collaborative efforts in countries
like Russia, Spain, Italy and the Middle East
1
https://www.animationxpress.com/animation/strategic-moves-indian-animation-studios-set-ambitious-agenda-for-2024/
2
afaqs.com/news/Television/nickelodeon-launches-two-new-homegrown-ips#:~:text=Nickelodeon strengthening its content game,end of May on Sonic.
3
‘Bharat Hain Hum’ animation series on unsung freedom fighters: Anurag Thakur | Latest News India - Hindustan Times
4
Expert interviews
5
TV Advertising Revenue FY23 News: Broadcasters See Drop in Ad Rev | Exchange4media
6
https://www.hollywoodreporter.com/business/business-news/disney-cuts-content-spending-2024-streaming-1235641858/
7
Netflix Animation Shakeup: Job Cuts Coming, Two Films Shut Down (variety.com)
8
Netflix Animation: Cancellations and Renewals 2023 | CableTV.com
135
IV. YouTube remains the number one digital V. Children’s media consumption shifted:
platform in India for animated content Urban markets preferred digital platforms
► Globally,
► Netflix and YouTube account for 82% of while TV dominated rural markets
children’s content consumption, with YouTube ► Continuing
► a trend from previous years, urban kids
alone contributing to 50-60% of animated content increasingly favored digital platforms, while television
consumption in India9 remained dominant in rural areas
► Despite
► revenue impacts from COPPA regulations, ► According
► to a recent survey, 26% of parents considered
studios maintain interest in YouTube due to its superior television in their top three platforms for their children,
data analytics capabilities compared to television with YouTube leading at 76% and Netflix at 57%10
► Listed
► below are India’s leading YouTube channels for ► JioCinema’s
► entry into kids’ entertainment, featuring
animated content: over 3,000 hours of Indian and global content in over
five languages, is poised to boost digital viewership11
Subscribers Views
# Channel
(Million) (Billion) VI. Anime grew and diversified
1 Chuchu TV 69.2 49.2
► India
► holds the second-largest anime fan base globally
2 Voot Kids 46.7 22.4 and is expected to contribute to 60% of the worldwide
growth in anime interest in the coming years12
3 CVS 3D 34.6 21.1
► 12
► million to 15 million kids in India watched TV shows
4 WowKidz 34.1 17.8 every week that were anime-focused13
5 Kids Channel India 25.6 11 ► Anime
► content constituted about 15% to 20% of the TV
6 Green Gold TV 20.4 9.9 programming schedule14
► JioTV
► has partnered to launch Animax in India15,
7 Infobells 14 5.4
while Prime Video introduced the Animax+GEM pack,
8 Zee Kids 13.1 8.1 featuring a selection of popular Japanese anime,
dramas, and variety programs with English subtitles16
9 Videogyan Kids 12.5 8.9
► The
► popularity of anime in India has spurred an increase
10 HoopaKidz 7.2 4
in merchandising and licensing. Sony YAY! acquired the
rights to Naruto merchandise for India17
Socialblade
9
YouTube, Netflix, TV top 3 kids animation content platforms in India: Akatsuki study | 1 Indian Television Dot Com
10
YouTube, Netflix, TV top 3 kids animation content platforms in India: Akatsuki study | 1 Indian Television Dot Com
11
JioCinema forays into kids entertainment - (animationxpress.com)
12
Crunchyroll to add 200 hrs of content, bring Tamil & Telugu dubs in India (animationxpress.com)
13
Warner Bros. Discovery bets on anime to drive growth of kids’ cluster in India (moneycontrol.com)
14
Warner Bros. Discovery bets on anime to drive growth of kids’ cluster in India (moneycontrol.com)
15
KC Global Media’s streamer Animax launches on JioTV in India - (animationxpress.com)
16
KC Global Media collaborates with Prime Video to bring Japanese entertainment to India with ‘Animax+GEM’ - (animationxpress.com)
17
Sony YAY! adds ‘Naruto’ to its licensing & merchandising portfolio in India - (animationxpress.com)
18
https://www.thestatesman.com/india/new-animated-series-feature-stories-of-freedom-struggles-unsung-heroes-1503230548.htm
19
PunToon Kids’ content to air on Doordarshan under the name ‘Piggy Bank’ - (animationxpress.com)
Media & entertainment
VFX
VIII. Animation embraced AI, Unreal The Indian VFX segment grew 10%
Engine, and cloud technologies
► AI is set to revolutionize animation by automating VFX revenues
routine tasks, freeing animators to focus on creative
aspects like character design and storytelling, which are 63
expected to remain predominantly human-driven20 54
50
► Animation
► studios anticipate a threefold increase in
efficiency and a rise in EBITDA by 10% to 15% due to AI 38
► Unreal
► Engine’s adoption increased due to its cross-
platform support and efficiency in animation, but a
talent shortage prevented the segment from utilizing its
full potential21
► A
► growing trend was noted towards using cloud-based 2021 2022 2023 2024E
workflows, chosen for their efficiency, scalability, and
enhanced security features22 INR billion (gross of taxes) | EY estimates
20
How generative AI will impact the animation industry - (animationxpress.com)
21
2023 Reflections: Indian animation industry’s AI integration, transformative tech, and expectations from government - (animationxpress.com)
22
2023 Reflections: Indian animation industry’s AI integration, transformative tech, and expectations from government - (animationxpress.com)
23
List of productions impacted by the 2023 SAG-AFTRA strike - Wikipedia
24
Disney to Cut Content Spending in 2024 – The Hollywood Reporter
25
Streaming Services In 2024:, Questions For Netflix & More – Deadline
137
III. The domestic market remained resilient V. AI, machine learning, and real-time
► Despite
► international projects contributing
rendering transformed VFX
approximately 70% to VFX segment revenues, there ► Advancements
► in real-time rendering provided artists
was a notable increase in domestic revenue owing to with instant visualization of complex scenes, crucial for
increased uptake in VFX for even mid-sized films the interactive and iterative process of VFX creation31
► Major
► Indian film productions, including ‘Animal’ and ► Increased
► adoption of AI and machine learning in VFX
‘Project K’, increasingly incorporated VFX, accounting was noted. Benefits included efficiency and automation
for about 25% to 30% of their total project costs26 of tasks, like upscaling, accelerated CGI pre-visualization
and realistic motion creation
• ‘Adipurush’ featured over 4000 VFX shots27
• ‘Salaar’ employed more than 600 VFX shots VI. Adoption of virtual production grew, but
• Redchillies.vfx worked on several large-scale films challenges remained
which were also some of the top-grossing films ► India’s
► adoption of virtual production remained slower
of 2023 like Dunki, Jawan, Animal, Pathaan, Tu than in developed markets due to longer than expected
Jhooti Main Makkar and 12th Fail28 break-even timelines
26
Industry discussions
27
4000 VFX SHOTS IN THE UPCOMING MOVIE ADIPURUSH (animationkolkata.com)
28
VFX chronicles 2023: Triumphs, challenges and 2024 aspirations in the Indian visual effects landscape - (animationxpress.com)
29
Social Throwback 2023: Why CGI was the most disruptive trend of th… (socialsamosa.com)
30
Industry discussions, EY analysis
31
Unveiling 2023: Right from AI to virtual production, India’s VFX powerhouses illuminate current technology trends - (animationxpress.com)
Media & entertainment
Post-production
Post-production revenue grew 20% II. South Indian languages led India’s dubbing
market and audience demand
Post-production revenues ► The
► dubbing segment in India places a strong emphasis
29 on South Indian languages. While content in other
Indian languages exists, it has not yet matched
23
19 the quantity and dubbing demand of South Indian
14 languages. Dubbing in India primarily focuses on Hindi,
Tamil and Telugu
► For
► major theatrical releases, films were dubbed in up to
seven regional Indian languages, reflecting the diverse
2021 2022 2023 2024E linguistic preferences of the Indian audience
INR billion (gross of taxes) | EY estimates
III. AI dubbing revolutionized film localization
I. Demand for content in multiple Indian
languages presented an opportunity for ► AI
► dubbing made a strong beginning, leveraging
data and machine learning to create voice profiles,
high-quality localization services
allowing for efficient and cost-effective film dubbing in
► Since
► the pandemic, the audience for English SVOD multiple languages. The technology ensures lip-sync
content in the country skyrocketed by 124%32, primarily accuracy, emotional tone adaptation, and character
due to the dubbing of English content into Indian voice consistency, revolutionizing film localization and
languages; 46% of viewers consumed content in their multilingual accessibility
native languages33
► Tech
► startups offer AI-powered dubbing solutions,
► B
► ookMyShow Stream partnered with VROTT Studios to addressing the mismatch between audio and visual cues
offer global catalogues in native Indian languages34 in dubbed content. Their technology ensures visual
► A
► mazon miniTV launched ‘miniTV Imported’, which integrity and synchronization in films and OTT shows
provides international content dubbed in Hindi35 ► AI
► dubbing was utilized in advertising:
► O
► n an average, Netflix releases the audio for its top • Coco Cola used AI for contextual Instagram videos
shows in 16 languages and subtitles them in 33; its to create updated voiceovers from pre-shot footage
local shows are also dubbed in up to seven languages36
• Amazon’s ad featuring Manoj Bajpayee, originally
► Prime
► Video garnered almost a third of its viewership in Hindi, used AI for authentic lip-syncing in seven
from regional Indian titles. In aggregate, more than regional languages38
60% of Prime Video’s viewership was anchored to local
content37
► Localization
► is becoming more complex and strategic.
Companies are now rethinking their operating models,
planning localization from the inception of projects,
and aiming for day-and-date multi-platform releases
worldwide
32
English content SVOD audience sees 124% growth since 2020 - Brand Wagon News | The Financial Express
33
English content SVOD audience sees 124% growth since 2020 - Brand Wagon News | The Financial Express
34
BookMyShow Stream partners with VROTT Studios to offer global catalogues in native Indian languages (medianews4u.com)
35
Amazon miniTV to soon launch first set of Hindi dubbed International shows (business-standard.com)
36
Behind-the-Scenes Look at Netflix’s Dubbing Process | by Neha Bansod | Medium
37
Behind-the-Scenes Look at Netflix’s Dubbing Process | by Neha Bansod | Medium
38
NeuralGarage bets on generative AI to make dubbed shows appear more natural (yourstory.com)
139
Future outlook
The segment is expected to grow at II. Emerging opportunities in adult animation
provide an opportunity for Indian studios
a CAGR of 17.5% to reach INR185
billion by 2026 ► Between
► January 2020 and October 2023, the demand
for adult animation in the US (excluding anime) surged by
152%41
Estimated growth
200 ► The
► growth was approximately three times higher
than the supply growth, indicating a strong market
46 opportunity, particularly during a time of heightened
150
production budget scrutiny42
29
100 24 83
III. Industry alliances will enhance global co-
54 63
50 production and financing opportunities
40 56 ► NFDC
► Film Bazaar partnered with Southeast Asian Audio-
36
- Visual Association (SAAVA) and the ATF IP Accelerator
2023 2024E 2026E
Project Market (AIPA) for a multi-year collaboration,
Animation VFX Post-production enhancing film and TV co-productions across Asia43
INR billion (gross of taxes) | EY estimates • The partnership encourages diverse international
I. Government incentives for exports will projects that could further increase demand for VFX
services in the Asian market
provide impetus to the segment
• This initiative, coupled with India’s film incentives, is
► The
► Indian government announced an incentive
poised to boost the animation and VFX segments
scheme for international animation, visual effects, and
post-production projects using Indian services, with ► The
► Asia TV Forum (ATF) and Ties That Bind (TTB)
up to 30% reimbursement on a minimum expenditure have formed a partnership to introduce the ATF x TTB
of INR10 million and an additional 5% for significant Animation Lab & Pitch44 which aims to unite Asian
Indian content. The incentive, capped at INR300 million and European producers, fostering exploration of new
per project, is to be applied for by the Indian service financing and co-production opportunities
company involved in the project39
► The
► government also offers a 30% reimbursement
on qualifying production expenditures in India for
foreign feature films, web shows, documentaries, and
animation projects with Indian co-producers, capped at
INR 300 million per project. This incentive is disbursed
on a first-come, first-served basis with a yearly limit of
INR1.5 billion, and applications must be made by the
Indian co-producer40
► These
► incentives are poised to boost the Indian
animation and VFX segment’s global competitiveness
and attract foreign collaborations
39
IFFI 2023 report
40
IFFI 2023 report
41
Adult animation data reveals demand growth far outpacing supply: Parrot Analytics - (animationxpress.com)
42
Adult animation data reveals demand growth far outpacing supply: Parrot Analytics - (animationxpress.com)
43
India/Singapore film-TV project markets partner to advance co-production - (animationxpress.com)
44
ATF Singapore 2023 to have Animation Lab & Pitch to explore financing and co-production opportunities - (animationxpress.com)
Media & entertainment
IV. Studios will increasingly partner with V. Cloud and physical infrastructure build-out
universities and institutions to bridge the will assist global collaborations
talent gap ► Cloud-based
► infrastructure enables animation and VFX
► To
► address the problem of finding and training the studios to support remote working, allowing artists to
right talent, studios are forming partnerships with access content and collaborate from different locations
educational institutions globally
► This
► proactive approach aims to cultivate skills from an ► The
► shift to cloud computing reduces the need for
early age, preparing for the increasing complexity of heavy upfront investment in physical hardware and
work outsourced to India software, offering a more flexible, usage-based pricing
model
• FTII and Toonz Animation collaborated in offering
animation and VFX courses at Pune, with plans for ► With
► cloud service providers managing technical
an incubation center to encourage student-driven aspects like performance and security, studios can
IP development45 concentrate more on the creative side of content
production
• Reliance Animation Academy partnered with
Sandip University, Allen House, and Pimpri ► In
► addition, proposed film cities being developed across
Chinchwad University for early-grade animation UP, Maharashtra, Tamil Nadu, and others, will provide
and VFX training46 opportunities for large international studios to set up
operations in fit-for-purpose locations
• Technicolor enhanced its training programs, both
internally and at the Technicolor Creative Studios
Academy, to support careers in audio visual,
gaming and computer graphics, collaborating with
government ministries to promote creative arts
careers47
► A key gap that needs to be addressed is the ability of
animators to understand the ‘acting’ component, not
just the art
► The approval of the National Centre of Excellence will
also assist in this endeavour of developing talent
45
FTII Pune signs MoU with Toonz Animation Studios to launch animation and visual effects design course - (animationxpress.com)
46
Reliance Animation Academy partners with three universities to provide animation & VFX courses - (animationxpress.com)
47
VFX chronicles 2023: Triumphs, challenges and 2024 aspirations in the Indian visual effects landscape - (animationxpress.com)
141
VI. Global cost rationalization will provide an VII. Build global IPs
opportunity for India ► India has already proven itself capable of creating
► As the risk-taking appetite of global studios decreased YouTube friendly content for global kids audiences
in 2023, and they focused on creating top-end product
► It is time for India to create film and OTT IP that
at lower costs, the opportunity for India to increase its
resonate globally, such as Mighty Little Bheem
importance in the supply chain improved
► The opportunities abound both from a mythology
► We expect the use of government incentives,
perspective as well as around various movie characters
co-production treaties and the set-up of many
international VFX studios to provide a significant
opportunity for India to take advantage of the global
environment
► IT will also provide India a chance to build its on
technological IP and differentiate our service offerings
from other countries
Media & entertainment
Trends
Animation and VFX
Powered by
India continued to invest in animated films and series
Illustrative list
VFX use increased, and VFX shots increased across theatrical and OTT releases
(Number of shots)
companies began to scale
Adipurush 4,000+
8,750+
FutureWorks Pathaan 3,000+
8,000+
Redchillies vfx Rana Naidu 1,550+
Rocky Rani Ki
1,400+
Prem Kahani
5,000+
Framestone (unique shots Selfiee 1,250+
for 30 projects)
4,500+
PhantomFx Heeramandi 1,100+
(Sci-fi film Ayalaan)
4,000+
Ae Watan
750+
Digikore Studio Mere Watan
All data has been provided by AnimationXpress, a brand of IndianTelevision.com, and has not been verified by EY.
143
AI for visual
Blockchain for ideation, data
content protection, Cloud-based Advanced
analysis, coding,
VR and AR workflows simulation software
quality control,
experiences previsualisation
FutureWorks added
88 Pictures opened Digitoonz set up a new facility in Mumbai
their first international an office in and Hyderabad each
office in Toronto, Canada Los Angeles, USA
Animation
Technicolor India
launched a new studio
Global studio M2 VFX in Mumbai
Chennai-based Animation inaugurated
Saffronic set up in its first India office
Bengaluru in Mumbai Basilic Fly Studio
launched Lightrunner
Studio in the UK
International Cartoon
Japan’s
company KC Network started
Broadcast
Crunchyroll streaming
Global Media airing My Hero
Digital
In 2023, the Animation and VFX sectors struggled due to the Today we have a clear opportunity to bring India’s proud
writers’ strike and Indian kids TV broadcasters’ issues. This 100-year history of film heritage and world-class industry
forced Indian studios to focus on overseas and domestic OTT expertise to the global market. Now is the time to bring
and film projects. Improvement is expected in early 2024. our stories and our talent to the world.
India stands to gain from global disruptions, showcasing talent VFX is blurring reality, AI is animating dreams, and
and deploying infrastructure at scale. The surge in demand for narratives unbound. This isn’t animation’s future, it’s
high-end computer graphics content has led to the evolution of happening now.
global value chains, with India being positioned as the ‘engine
room’ for scalable content production on the world stage.
In the current digital age, all content and storytelling will In the rapidly evolving AVGC industry, the convergence of
need some amount of technological enhancements. With pre-visualization, real-time techniques, and post-production
new areas like Virtual Production Stage and AI along is reshaping the future. AI emerges as a pivotal enabler,
with advancements in VFX coming our way, it is up to the augmenting skillsets and driving innovation, defining the
directors and the conceptualizers to use all that is available next frontier of creativity and technology.
to amplify the experience of the viewer.
Arjun Madhavan Mandar Natekar
Assemblage Entertainment NeuralGarage
As we move into 2024, new technology, global expansion, and Localisation of content is the currency of commerce for the
creative storytelling can help create a future where India will entertainment industry. AI will not disrupt but enhance
continue to be a leader in high-quality productions across CG, the post-production process including VFX & dubbing
2D animation, premium VFX, and advanced technology-led and make the content experience a visual delight for the
formats such as game-engine/ virtual productions. Within viewers and creators alike.
this artistic and technological mosaic, India stands out as a
formidable force, ready to cater to the diverse demands of
the global M&E sector.
It is crucial to emphasize that Artificial Intelligence cannot While the demand for VFX is robust and will grow
replace Creative Intelligence. In AVGC, our engineers exponentially, studios and artists will need to skill up and
are inherently creative, not mechanical. The essence lies offer a turnkey VFX/ CGI solution to studios which will
in leveraging technology as a supportive tool, enhancing include offerings in pre-production, production and post-
and advancing the capabilities of our content creators. production. The role and involvement of the VFX studio will
extend to all phases of content creation and delivery.
The past year has seen Indian content winning globally. In India, animation has been perceived as a kids medium.
The trend will continue as Indian content creators dream Globally, however, animation has already been widely
bigger. We will also witness disruptions in production tech explored and accepted through relevant thematics and
and business models. New business models will be key for storylines for adult audiences. The next milestone of growth
the growth of the industry and the new co-production fund for Indian animation will be to present our rich array of
will definitely aid Indian producers. compelling stories in animation, especially for adults.
Anil Wanvari
AnimationXpress.com
The good news is that the Indian animation industry is transforming from service work
to original IP which can travel globally. The VFX business is facing a bit of a slowdown
because of delayed productions courtesy the US writers’ strike. However, things should
start looking up in the next six months helping kickstart growth.
Live events
Media & entertainment
Executive summary
The live events segment was action-packed in 2023, underscored not only by growth but also by a notable rise in the
premium segment. While traditional events would continue to provide opportunities, the growth of events focused on
international stars and government events around elections would likely be the key highlights in the coming months.
Recently, conversations around sustainability have also risen in prominence, and will become a big part of planning
and strategy for this segment moving forward.
► Corporate events stagnated as several marketers EY estimates | INR in billion (net of taxes) | Uses extrapolations, assumptions,
unverified industry discussions, and is therefore indicative only
continued with a hybrid (online + offline) experiential
model and re-allocated funds to influencer marketing
and digital media. Leading spenders on events were ► The live events segment revenue represents the
retail, BFSI, electronics and PSUs revenue of “organized” events and activation agencies
and does not include (1) revenues of the multitude
► 63% of the marketers we surveyed plan to increase of “unorganized” event companies spread across the
their events and activations spends over the next two country, (2) personal events which are paid for in
years. Consequently, we expect the live events segment cash, (3) in-house managed corporate events, and (4)
to grow at a CAGR of 18% over the next three years to religious and personal events, as it is not possible for us
reach INR143 billion by 2026 to size them. We have provided broad estimations for
► Growth will be driven by premium and international the above to provide context.
properties as well as opportunities in tier-II markets, In addition, events revenues earned by other segments
such as Surat, Jaipur, Ahmedabad, Vizag, Lucknow, of the M&E sector are included in the revenues of the
Patna, Ayodhya, Trivandrum and Cochin respective sectors.The size estimate also does not
► Event companies will evolve into community managers include:
to increase audience engagement opportunities and • The value of media spends on and telecast rights
build first-party data of events (unless event IP was owned by an events
and activation management company)
• The value of meetings, incentives, conferencing,
and exhibitions (MICE) conducted by pure travel
companies
• Monetization of IPs not owned by event companies
e.g., sports media rights
Media & entertainment
Monetization
Government and personal events I. Government events
contributed significantly to the ► The government sector increased spending on election
segment’s growth related events, rallies and public appearances to engage
with voters, along with awareness programs and
marquee international events such as the G20 Summit
Fastest growing event types
► PSUs also spent significantly more on live events,
Govt 80%
including those celebrating the achievements of various
governments, promoting state investment summits and
Weddings/ driving welfare schemes1
78%
personal
► The opportunity for government events is restricted to
Festivals
58% those event companies which have invested in building
and cultural
long-term relationships with the Government and PSUs
Live entertainment 53%
(music concerts, etc.)
II. Weddings and personal events
MICE 38%
► Growth of weddings and personal events have
surpassed pre-COVID levels. India’s affluent class is
Awards 25%
expected to nearly double to 100 million people within
three years, according to Goldman Sachs Group Inc.2
Brand activations 20%
► India has also become a popular destination for
Corporate international couples seeking unique and culturally rich
20%
launches
wedding experiences
EY survey of event company CEOs 2024 | % of respondents III. Festivals and cultural events
► The soft power of India has been growing, and the
number of festivals and cultural events, which are
attracting foreign tourists is on the rise
► The government’s focus on promoting Indian culture
is also paying dividends, with various states taking
up local cultural themes and using events to promote
tourism
1
https://indianexpress.com/article/india/three-years-of-modi-government-9-
psus-held-30-events-total-expense-rs-15-crore-4712638/
2
https://www.deccanherald.com/business/economy/100-million-affluent-indi-
ans-by-2024-but-divide-in-spending-power-an-issue-goldman-sachs-2847654
149
► The number of ticked events continues to rise, including Government, Retail and BFSI
international artists and festivals visiting India:
were the top sectors spending on
Ticketing revenues managed events in 2023
120
Sectoral spend on events (indexed)
100 19
17
Government
80 12
60 Retail
40 2 82 88
75 Banking, Financial
20 42 services, Insurance
Electronics, laptops,
0
2021 2022 2023 2024E phones
Telecom
3
Various news articles
Media & entertainment
No change
0%
since 2023 Support international formats to
Down upto 10%
launch in India
8%
► With the advent of premium venues like NMACC
Down > 10% 0% Mumbai, the number of international events, acts and
performers entering India to tap the potential of its
EY survey of event company CEOs 2024 | % of respondents growing affluent population will increase
► As more affluent people avoid advertising by consuming ► We expect to see growth in premium event venues
subscription products, events become a more important across Ahmedabad, the GIFT city, Kolkata, Bengaluru
mechanism to reach such audiences and Chennai6, which will further give a boost to such
► 92% of event company CEOs we surveyed expected the events
events sector to continue its growth in 2024 and this
sentiment corresponds with our survey of marketers, Celebrate brand India
where 63% of respondents expected their events
spends to grow in 2024 and 2025 ► Governments are all focussing on the culture and
monuments in their states, to latch on to the growth in
The segment can reach INR143 domestic tourism
• growth in conferences and exhibitions, as business ► An online community does not replace those events,
opportunities scale due to our US$5 trillion GDP it simply allows for longer engagement periods with
ambition audiences, and this can provide a revenue upside, and
• ticketed events, particularly music concerts and sports higher valuation of event IPs
events
► The key advantage of online communities is generating
• personal events and weddings, as affluence continues first party data. Such data is valuable for demonstrating
to grow in India
an event’s success to sponsors/ partners and provides
► 79% of marketers expect to increase their marketing event agencies and future sponsors with valuable
spends over the next two years4, which will lead to an
information about attendee preferences
increase in sponsorship revenue for various IPs and events
EY estimates
5
Limitless but personal. Mass scale execution but cohort driven, a Embracing purposeful cultural integration, the live events
billion touch points but individual consumers that you can know and experiential industry is poised to offer unprecedented
and listen to… and then respond to. This is the need of today…. immersive experiences, blending technology with
and it’s best met by the experience industry. The new events traditional touchpoints, redefining audience engagement
industry is creating global experiences and at heart has the in 2024 and beyond.
individual’s experience uppermost on the agenda.
Live is seeing a shift: Millennials prioritize quality The Creative Sector is destined for exponential growth
experiences, while Gen Z’s spend is driven by impulse and driven by weddings and live entertainment, even as
cost. There lies the opportunity. audiences look for unique experiences and are happy to
pay for the same.
While the entertainment business is growing across the There will be more innovation to produce better
board, PM Modi’s call to “marry in India” has resulted in a experiences as the growth continues. Government events
boost to the wedding industry. Indian destination weddings have seen increase in quantity and quality, as have
are on a new high, and wedding planners and hospitality personal events. Weddings lead the way in the business of
are benefitting. In addition, Bollywood shows, music celebrations. This trend will continue, and ticketed events
concerts and international artists are in heavy demand. also see a steady rise.
Yogesh Mudras Atul Nath
Informa Markets in India Candid Marketing
Strategic alliances, immersive customer experience, ground- These are super exciting times for ‘Experience Creation’.
breaking technology leveraging AI & VR, the revolutionary With so much in a state of flux around us, there are no
Un-booth Concept going beyond the 4 corners of a stand, rules and there are opportunities galore to break new
and deeper integration with social media platforms are ground, and create value. In the inevitable pursuit
bound to elevate exhibitions in the years ahead. for scale, the industry would do well to build a strong
foundation of integrity, depth and long-term stability.
Irrespective of demographic or psychographic profiles of the Innovative formats that seamlessly blend local sensibilities
target group, live engagement has always, and continues with global trends are driving a surge in ticket sales,
to be an integral part of our lives. Focus and accountability attracting significant sponsor interest. This potent
on purpose, process and attaining objectives is the ongoing combination is fueling the industry’s growth. Looking
need of the hour. ahead, hyper-targeted experiences, powered by data-driven
ticketing and tech-savvy sponsorships, will be the hallmark.
Deepak Pawar
Midas Next Media
Executive summary
Out of home (OOH) media is on a growth trajectory as transit and digital media continue to grow along with
traditional media. Although traditional media constitutes a bulk of the segment, transit and digital media are
growing and would soon outnumber premium traditional media in the coming years. Macro-economic factors such as
urbanization and growth of affluence are also contributing to the growth of the segment.
9% 26%
5% 6% 8%
Rail &
2020 2021 2022 2023 metro
Transit Traditional Digital 61% Airports
EY estimates
EY estimates
► Traditional media contributed 62% of total OOH
media, not counting ambient media, wall paintings, ► Transit media generated INR15.7 billion in 2023 (38%
proxy media (like ads in automated teller machines), of total OOH) up from INR15.1 billion in 2022
storefronts and the informal/ unorganized sector ► Air passenger traffic in India grew by 8.34% over 2022
► Traditional media has grown by 19% over 2022 on and hit a record high of 0.152 billion, surpassing the
the back of increased demand for premium inventory pre-pandemic levels1
formats and large digital screens in metros ► Mega infrastructure projects, smart city missions,
► However, rates for certain players we interviewed were new airports, metro stations and promotion of marine
still 5% to 10% below their pre-COVID highs transport are driving the growth of transit media
► Brands are tilting towards transit media on account of
the high visibility and frequency of ads offered, which
can be leveraged to engage with an upwardly mobile
audience
► In the realm of transit, there is a swift transition
underway from static to digital formats. By the year
2026, an estimated 60% to 80% of transit displays are
expected to have shifted to digital in the metros, as per
our discussions with segment leaders
1
https://economictimes.indiatimes.com/industry/transportation/airlines-
/-aviation/domestic-air-passenger-traffic-grew-8-34-to-15-20-cr-in-2023/
articleshow/106871494.cms?from=mdr
157
DOOH investments and revenues ► DOOH is rapidly growing in India due to enhanced
measurement capabilities, government support
increased for digital infrastructure, and creative flexibility.
Digital OOH revenues The integration of mobile technology and changing
consumer behavior further accelerated the adoption of
3.9
DOOH in the Indian advertising landscape.
Residential apartments
Retail media
Transit media
Shopping malls
Restaurants/ cafés
Offices
Movie theaters
Airports
Medical centers
Public spaces
Outdoor billboards
► Installed screens grew by 67% over 2022 to reach ► The rapid growth of DOOH media suggests a growing
150,000, of which approximately 75% were situated recognition of the effectiveness of advertising in high-
in metros3 density areas, particularly ones which are close to the
point of purchase
► 66% of the growth in the number of screens came from
residential apartments and retail media, followed by ► DOOH has consistently shown double digit growth
transit media over the past three years owing the advances made in
Programmatic Digital Out-Of-Home (pDOOH), which
► 15% of screens are now 60 inches in size or larger, most
comprises around 15% of ad volumes, while direct deals
operate for 16 hours a day and usually have ads from
account for 85% share
around six advertisers playing at any point in time4
2
Based on data from Lemma, Moving walls and industry discussions
3
Lemma Technologies estimates
4
Moving Walls estimates
Media & entertainment
Future outlook
Real estate and organized retail We expect OOH to reach INR54.3
were the largest categories5 billion by 2026
Contribution Contribution OOH segment revenue projections
Sector
2022 2023 to growth 54.3
Real estate and 46.6
19% 19% 22% 41.6
construction
Organized retail 13% 13% 18%
Consumer services 11% 12% 15%
FMCG 13% 11% -3%
Financial services 8% 9% 14%
Media 9% 7% -5%
2023 2024E 2026E
Automotive 6% 6% 6%
INR billion (gross of taxes) | EY estimates
Telecom 5% 5% 9%
E-commerce 3% 2% -2% ► The importance of the OOH sector has increased in
Household durables 2% 2% 5% terms of enabling advertisers to reach rich audiences,
particularly those who have moved to ad-free video and
Pharmacy 1% 1% 2%
audio options
Petroleum 0% 0% 0%
► We expect the segment to grow at a CAGR of 9% to
Energy 0% 0% 0%
reach INR54.3 billion by 2026, growth being driven
Others 11% 12% 20% both by volumes, as more DOOH and transit inventory
Total 100% 100% 100% come into being, as well as rates, especially for
premium locations and transit media
Pitch Madison Advertising Report 2023
► Urbanization of rural India and rising per capita income
► The top five categories contributed 64% of OOH spends will drive growth for the mass segment
and 66% of growth
► Real estate and construction continued to be the largest
category to spend on OOH with a share of 19%;
this growth has been propelled by the interplay of
urbanization, infrastructure development, evolving
demographics, government initiatives, etc.
► Other categories which drove growth included organized
retail, consumer services and financial services
► With the exception of FMCG, media, and e-commerce, all
categories witnessed growth over 2022
► Telecom, once the leading contributor, commanded just
a 5% share in 2023
6
https://www.afaqs.com/news/media/dooh-set-to-drive-outdoor-
advertising-growth-this-year#:~:text=%22The%20share%20of%20OOH%20
advertising,OOH%20industry’s%20key%20growth%20driver.%22
Media & entertainment
#Reinventing OOH
From location to audience buying Ad network integration
► Dynamic adjustment of ad content and placement,
► DOOH networks will combine with digital ad networks
using real-time audience data and segmentation
to provide a seamless platform to buy digital and DOOH
techniques to form more intelligent audience groupings,
inventory
utilizing insights from both first-party and third-party
sources. Advertisers will now buy audiences and not the ► Integrating programmatic platforms will enable
locations utilization of unsold inventories
► Integration with radio ad scheduling software can also
Improved ROI measurement enable a combined audio and video OOH experience
► In the years to come, OOH advertisers will have access ► By geo-targeting, DOOH can help distribute discount or
to advanced measurement and analytic tools. Utilizing trial coupons for local stores to patrons who are willing
sensors, cameras, and data analysis, advertisers to receive offers
will acquire a more profound insight into audience
engagement, foot traffic, and conversion rates
Innovation around engagement
► The IOAA, in partnership with Relu.AI, has created
‘Roadstar’ an evaluation as well as a planning platform ► Established and modern brands are adopting computer-
for OOH. The platform uses pan-India mobility data generated out-of-home (CGOOH) advertising, which has
(150 million anonymized points of interaction every empowered brands to exceed the limitations of reality,
day, tracking movements, points of interest etc.), creating visual campaigns that add to effectiveness
the India Census, Global Administrative Areas Maps ► The integration of OOH advertising with mobile devices
(opensource shape files that provide the geographical using technologies such as QR codes, NFC, beacon,
boundaries for various states, districts, towns, and location-based services and apps will enable consumers
taluks), Google Maps and points of interest maps to interact with OOH campaigns and access immersive,
► The platform has been designed to deliver detailed interactive experiences using their smartphones
reports for metrics such as cumulated unique reach, ► Integrating digital screens with traffic information can
cumulated impressions and frequency for a campaign enable smarter traffic signaling
plan, as well as site-wise impressions, frequency and
opportunity to see. It can also deliver weekday and
weekend metrics, hourly reach, etc.7
IOAA
7
161
Adding utility
► Smart assets will help with rainwater harvesting, air
quality measurement and management, as well as
become centers for availing government digital services
Trends
Digital OOH India
Powered by Moving Walls India Pvt. Ltd.
Hospital 2,500
Programmatic 15%
Metro/ metro station 2,500
Gym 1,000
Ads play for an
average of 12 Pharmacy 1,000
hours per day
Gas stations/ petrol pump 1,000
(10-15 seconds
average ad slot duration)
Salon 250
All data has been provided by Moving Walls India Pvt. Ltd. to EY and has not been independently verified by EY. It has been presented in summarized form for
presentation purposes only.
163
702
Punjab Himachal Pradesh
Chandigarh (UT) 195
201 Assam
Uttarakhand
Haryana 309 117
10,953
Delhi 10,785
Uttar Pradesh
Rajasthan
23,379 Bihar
2,112 60
Gujarat Jharkhand
5,175 Madhya Pradesh 117 West
1,518 Bengal
9,090
Chhattisgarh
Odisha
468
Maharashtra 876
33,348
Telangana
21,288
Goa
Andhra Pradesh
258
1,665
Karnataka
27,381
Kerala
1,863 Tamil Nadu
13,533
Pricing is evolving
Average price per month per ad slot (average 200 ad plays per day) in INR
OOH has been an overwhelmingly under used medium. AR, VR, CGI, holograms and other new technologies
To drive growth through ethical practices, inclusivity and are reshaping advertising strategies, with brands
innovation, the IOAA has introduced “RoadStar” an OOH increasingly embracing OOH. DOOH provides
media evaluation platform. More tech innovations are advertisers with flexibility, engagement and more
also in the pipeline. These innovations would enable OOH importantly measurability. Major events like the Lok
to gain its rightful place in the media landscape. Sabha election, the IPL and T20 World Cup will inject
significant spending into the sector in 2024.
DOOH has given our industry a wonderful opportunity Indian OOH media is going through a huge
to get our fundamentals in order. If we can automate our transformation right now where DOOH is taking over
buying process, give reliable audience data and provide conventional static billboards. With connected screens,
proof of performance through third party monitoring, I immersive technology and engaging content, OOH is
think we can double our share of the advertising pie. becoming a medium of choice for advertisers who want to
target young and constantly mobile consumers.
Rishabh Mehta Sunil Vasudeva
LOCAD Pioneer Publicity
With the advancement of technology and the rapid pace Out of home media will continue to grow, with premium
of urbanization, OOH and DOOH are not only becoming inventory providing a cost-effective means to target
widespread but also more adaptable and precise. This affluent audiences.
trend provides advertisers with exceptional avenues
to connect with audiences in meaningful and effective
manners, fostering engagement and impact.
Throughout India, new developments are being DOOH is being propelled by the confidence in
planned with digital signage in mind. The only missing programmatic technology and advanced measurement.
development is around a common measurement From enhanced creativity (3D and anamorphic ads)
standard, which is bound to happen soon. Indian brands to technological strides (pDOOH), screen expansion,
are embracing digital OOH not just in India but running and quality, DOOH has become a pivotal element in
outbound campaigns in markets where there is demand both traditional and digital media plans, shaping the
for their products and services. advertising landscape.
Music
Media & entertainment
Executive summary
Indian audiences continue to have a strong engagement with music. Film music leads consumption, primarily through
music streaming. However, the live events space made a strong comeback. Digital music consumption continues
to rule, recording a majority of the music industry’s revenues. We expect to see consolidation in the records labels
space. Technology will continue to play an important role in the music industry in the coming times.
Music consumption
Indian consumers spent 24.4 hours Music consumption was led by film
a week listening to music1 music
► Indians
► continued to engage strongly with music in 2023, Digital listenership by genre
though the overall time spent dipped by 5% to reach 24.4
hours per week vs. 25.7 hours per week in 2022 Others 10%
64% Film music
► However,
► this was 18% higher than the global average of
20.7 hours per week
► A
► study of Indian music listeners reports that:
• 9
► 4% use a licensed audio streaming platform
Artist-led
27%
• 76% said that music is important to their mental music
health
• 74% discovered a new artist or music weekly
► However,
► 74% also use unlicensed or illegal ways to listen
to music, much higher than the global average of 29%
IPRS estimates | Uses extrapolations and pertains to data from select DSPs.
► 64%
► of consumption was film music, this has reduced
from ~80% three years ago as a more artist-driven
industry emerged2
► Artist-driven
► music comprised 27% of the music
consumed. Top genres enabling this include Punjabi
music, which is now gaining popularity internationally
► 2023
► marked the first time an Indian artist, Diljit Dosanjh,
performed at the Coachella Valley Music and Arts Festival
in California, bringing Punjabi artist music to a well-
recognized global stage
► This
► has opened the door for international collaborations
as well. Music artists in India have started to create at the
top international levels, which has improved the quality
of music. Indian artists have released singles along with
international artists such as:
• Hass Hass by Diljit Dosanjh X Sia, an Australian artist
• Palpito by Diljit Dosanjh X Camilo, a Columbian artist
• Maan Meri Jaan by rapper King which got
re-launched featuring Nick Jonas
► Other
► genres consumed were devotional and folk songs,
which comprised ~10% of the consumption
► Approximately
► 10-15% of all digital music streams
pertained to international music
1
IFPI “Engaging with Music 2023”
2
Industry discussions
169
IPRS estimates | Uses extrapolations and pertains to data from select DSPs
► The
► balance 30% was split across Punjabi (8%),
Tamil (5%), Telugu (5%), Kannada (3%), Marathi (2%),
Malayalam (1%), Haryanvi (1%), and others (8%)
3
EY estimates
4
Social Blade as on 28th December 2023
5
IPRS estimates
6
https://www.livemint.com/companies/news/lollapalooza-india-is-on-track-to-break-even-next-year-bookmyshow-11706165616886.html#:~:text=%E2%80%9CLol-
la%20will%20break%20even%20by,%E2%80%9C%E2%80%A6
7
https://www.gqindia.com/entertainment/content/backstreet-boys-bonobo-4-big-upcoming-international-acts-to-check-out-in-india
Media & entertainment
Monetization
Digital revenues were 87% of the Digital revenues grew 9%
total music segment
► Music
► streaming apps had a base of approximately 185
Break up of music segment revenues million active users8
► Of
► the above, the paid subscriber base grew
4% 1%
significantly from 4 million to 5 million in 2022 to
Sync approximately 7.5 million9 in 2023
Physical
8% ► After
► Gaana in 202210 , Resso announced a shift to
Performance SVOD exclusively11
rights
► Spotify
► introduced further listening restrictions to free
users in India – they will no longer have the ability to
play songs in a particular order in a playlist, repeat
tracks, return to previous songs, or move to a specific
part of a song to listen to12
► Digital
► music revenues (including YouTube) increased
87% almost 9% in 2023 to INR18 billion, ~77% of which was
Digital advertising driven
EY estimates | At end consumer prices | Does not include electronic products
with embedded music
► Digital
► garnered 87% of music segment revenues,
comprising revenues earned on music streaming
platforms, YouTube, short video, and social media
platforms, and from telecom operators
► Sync
► and performance rights held on to their share of
overall revenues
8
Comscore
9
Industry discussions, EY estimates
10
https://musically.com/2022/09/12/gaana-ditches-free-streaming-in-favour-of-paid-subscriptions/
11
https://techcrunch.com/2023/05/04/bytedance-is-making-its-music-streaming-service-resso-premium-only/
12
https://www.newsbytesapp.com/news/science/spotify-introduces-listening-restrictions-for-free-users-in-india/story
171
► Share
► of label revenues attributable to digital were 90%,
and they also contributed 90% of the absolute revenue
growth for labels
13
https://inc42.com/features/india-short-video-apps-social-media-wasteland/
14
https://inc42.com/buzz/short-video-platform-tiki-shut-down/
15
https://inc42.com/features/sequoia-exits-trell-massive-loss/
16
Industry discussions
17
https://timesofindia.indiatimes.com/entertainment/telugu/movies/news/mahesh-babus-sarkaru-vari-paata-audio-rights-sold-for-a-record-breaking-price/article-
show/84901752.cms
18
https://www.news18.com/entertainment/telugu-cinema/pushpa-2-audio-rights-sold-for-record-price-a-new-feat-in-indian-cinema-7712443.html
Media & entertainment
Future outlook
We expect the music segment to Record labels will continue to
reach INR37 billion by 2026 consolidate
► We
► have seen several deals in the music segment as
Music segment revenues
larger labels consolidate their holdings across language
37 markets, and we expect this trend to continue
► This
► will improve monetization potential through digital
streaming, help bring more genres and regional music
28 to the mainstream market and strengthen labels’ ability
24 to invest in artists and creators
► We
► expect the segment to grow at a CAGR of 15% over
the next three years to reach INR37 billion
► Growth
► will be driven by expansion of the smartphone
base as the next 100 million users get access, growth in
the SVOD base, more music concert revenue, increased
reach of social media, growth of YouTube, as well as
increased international consumption of Indian music
19
Industry discussions
173
#Reinventing music
Create new artist discovery Focus on collaborations
methods
► As
► music acceptance and experimentation increase,
► We
► expect that the share of artist-driven music will the number and type of collaborations can help cross-
continue to grow and contribute around 40% of pollinate fans, both globally as well as locally
consumption by 2026-202720 ► Local
► collaborations across languages as well as genres
► Crowdsourcing
► original music for OTT and film content can create a new variety of music, as well as be the
can bring about choices, and provide chances to young foundation for many entertainment/ reality shows
and fresh talent
Trends
Spotify India
Reach
70 Tier-I 7,500
million cities
Spotify users in India at the end A majority of the Towns in India where Spotify
of October 2023 streams for Spotify in was streamed between
(per Comscore) India come from here 2021-2022
Note: All data has been provided by Spotify India and is based on their research. It has not been validated by EY, and presented in summary form for
representation purposes only
175
Expert
speak
Devraj Sanyal Neeraj Kalyan
Universal Music Group
T-Series
India continues to top the global list of most important growth DSPs efforts have started to show results in terms of incentivising
markets. While the market saw consolidation with huge free subscribers to upgrade to paid streaming, and we expect
corrections, it will continue to grow aggressively on the back this trend to significantly grow during the next three years.
of technology, regional penetration, newer younger genres Substantial product differentiation is needed between free
popping faster and Indian Independent Popular music and and paid tiers. Exorbitant cost of content in both film and
artists that we’re now calling I-Pop compared to film music. non-film albums is making this transition difficult .
While the focus on growing paid subscribers will cause Indian music industry has emerged from the legacy
short-term stress, I believe that in the mid-term, revenues shadow of the film industry and there is nothing called
will double and we can expect around 50 million ‘Regional music’ – it’s all national and mainstream.
subscribers in a few years. The industry is shapeshifting structurally into an artist
and talent centric industry. Smaller but highly engaged
communities of superfans (rather than consumers) will
drive consumption of music and surrounding experiences.
2024 will have challenging trends as far as ad-supported In the upcoming year, a prominent trend emerges in
revenue is concerned, however, we expect a steady growth the Indian music industry. An artist-centric ecosystem
in music subscriptions in India. In 2023 only the top where superstars dominate charts and shows, along with
theatrical successes gave a push to music consumption, streaming services pivoting to a paid ecosystem, will
and 2024 could see similar results. 2024 will provide reshape consumption in India.
opportunities for M&A and strategic partnerships.
Vinit Thakkar Anurag Bedi
Sony Music India ZEE Music Company
Fuelled by soundtracks and a focus on artists, India’s music Indians are now consuming more music, and the industry is
scene will soar as digitally connected youth forge a fan-led expanding beyond conventional film music. We have seen an
ecosystem, opening a vibrant new chapter for the industry. upsurge of new talent, offering a new landscape of music. In the
short term, we may see a slow down with some services going
pay and others shutting down, but can expect to see stellar
expansion in the long term as overall consumption grows.
Moving towards a paid ecosystem with multiple paid tier Overcoming widespread avoidance of Public Performance
options to the consumer is the surest way to #reinvent Rights is crucial for a thriving music ecosystem. Collaborating
the recorded music industry. Baby steps have been taken with the government is going to ensure compliance,
towards a paid ecosystem, a glass half full, half empty safeguarding rightful dues for copyright owners and artists.
situation. I would like to look at the glass as half full.
The rise of Music Publishing is leading a shift of control As technology reshapes music, the industry and creators
to songwriters, enabling them to retain copyrights in must harness its benefits for enhanced creativity. It is also
their compositions and lyrics. This helps them share in the vital to have robust laws ensuring IP rights, granting
success of their songs, and retain a say in how their music human creators and rights holders their deserved credit
can be used by labels and publishers across versions, and fair remuneration.
adaptations, sampling and synchronisation.
Radio
Executive summary
The radio segment is still recovering from the pandemic-induced slowdown. Although, revenue continues to grow, it is yet to meet
the 2019 numbers. Hyper localization has become an important factor towards the growth of radio. While smartphones continue
to grow and impact almost all segments of the M&E sector, radio is no longer available on all smartphone models. There are
distinct opportunities for radio in India to grow, provided the right opportunities are tapped.
31 Monetization
► Radio segment revenues grew 10% in 2023 to INR23
billion, but were still just 73% of 2019 revenues
► Ad volumes increased by 19% in 2023 as compared to
23
the previous year, with estimated fall in ad rates by 8%
21
► Share of retail advertising increased
16 ► Radio companies are focusing on building regional shows,
14
with novel and engaging content which are multi-media
in nature, and non-FCT revenues are now 20% to 25% of
total revenues
► Lack of unified and independent third-party monitoring
continues to be an industry issue
► We expect revenues to recover to INR27 billion by 2026,
of which around a fourth will be non-FCT revenues
2019 2020 2021 2022 2023
Reach Monetization
India had 1,313 operational radio Radio ad volumes increased by 19%
stations compared to 20225
► India had 36 private FM broadcasters in 2023, ► 426 categories comprising 10,000+ advertisers and
operating 388 FM radio stations across 113 cities1 13,615 brands advertised on radio during 2023
► In addition, the public broadcaster Prasar Bharti’s ► Of the above, 4,400 advertisers were not present on TV,
All India Radio service operates 479 stations in 23 print and digital
languages and 179 dialects, reaching 92% of the ► Due to the enormous increase in volumes which was higher
country’s area and over 99% of India’s population2 in smaller towns at lower yields, ad rates remained soft,
► India had 446 operational community radio stations as falling 8% on an average
of June 2023, up from 366 last year
Share of retail advertising volumes
Regulatory initiatives increased6
► Retail/ local advertisers’ share of ad volumes increased
► The Government approved 43% increase in the base 28% over 2022 driven by revival of the retail segment in
rates of advertisements on private FM radio stations. 2023 and the growing cost of local and city-centric digital
The new rates have been announced after eight years3 advertising rates
► The Telecom Regulatory Authority of India (TRAI) ► National advertisers share of total radio advertising fell,
has released recommendations on issues related to though actual volumes grew by 10%
FM radio broadcasting, including private FM Radio
► Services, retail and auto were the top three categories,
operators being allowed to broadcast news and current
aggregating 51% of total spends on the medium
affairs programs, limited to 10 minutes in each clock
hour
► TRAI has also recommended removal of linkage to Share of non-FCT revenues increased
non-refundable one-time entry fee and extension of the
existing FM license period of 15 years by three years4 ► Industry discussions indicated that non-FCT revenues
contributed an average of 20% to 25% of total revenues
earned by large radio companies
► Creating event IPs, brand activation, building communities,
international music streaming, content production,
digital marketing and influencer marketing were the top
contributors to such revenues
Future outlook
Revenues will continue to recover in Non-FCT revenues will continue to
2024 grow
Revenue mix of radio segment
Radio segment revenues
27 17%
24%
23 24
83%
76%
► We expect radio revenues to continue recovering and ► Radio companies’ innate ability to create relevant
reach INR27 billion by 2026, though ad rates will regional content will help drive their growth in the
continue to remain subdued content production (both short form and episodic) and
influencer marketing business
► Growth will be driven by:
► Considering the hyperlocal nature of the radio
• SME and retail advertiser segment, where spends
product, radio companies are well positioned to build
can be easily attributed to sales
communities to drive D2C relationships, which can be
• Launch of several new and challenger brands in leveraged by brands
FMCG, durables and electronics, where retail ad
► Hyperlocal and D2C revenue streams will be a key
media are effective in creating awareness
differentiator for radio players as compared to digital
• Non-FCT revenues as radio companies create brand and national media
extensions to leverage additional opportunities for
► This will change the revenue mix significantly, with
community building, content production, influencer
non-FCT revenues comprising approximately a fourth of
marketing and short video
total revenues by 2026
► Rate recovery will continue to be a challenge, and
require significant innovation and concept selling, as
well as implementation of a measurement metric to be
able to demonstrate – especially to national advertisers
– the efficiency of the medium
► The increase in DAVP rates for government ads will be
welcome in an election year
Media & entertainment
#Reinventing radio
388 FM
stations
446
community radio stations
500+
RJs
4 million+
cars sold each year with
integrated radios
Radio is and
will remain an
integral part 750 million+
of India phones within India
20,000+
original songs released
each year in India
165 million+
TV sets
Source: Media article, EY report music publishing in India, IPRS, YouTube, ICEA, Industry discussions, FICCI-EY M&E sector report. Ideas do not consider current
regulatory environment or licensing regime, which may need to be changed to implement the above.
183
Bundle inventory
Create bouquets and bundles of community radio stations and offer advertisers hyper-local audiences,
subject to regulatory compliances
Monetize followers
Build an influencer network and use tech to match influencers to brands and their needs
Embed drives
Ensure FM and digital radio remain available in all cars
Ensure reception
Ensure radio sets continue to come with FM receivers
Build engagement
Offer voice-activated personalized stations that adapt to user preferences over time. Allow users to create
custom voice commands to access frequently listened to stations or genres
Go song+
Create on-demand content like podcasts, news briefings, weather, sports and entertainment updates
within the radio experience, using Generative AI
Piggy-back on TV
Use television frequencies to distribute radio channels, add 165 million households. Perhaps use the
landing page more effectively
Go global
Build products for the Indian diaspora available on digital media around the world
Media & entertainment
Trends
India radio advertising
Powered by TAM AdEX
(A division of TAM Media Research) in association with RCS India
Radio ad insertions grew 17% in 2023 Over 13,600 brands
On an average, 64 thousand ads were broadcast daily in 2023 advertised on radio in 2023
Up 5% from 2022
Average ad insertions per day
5 Reliance Retail 1%
49% 53%
39%
% of total ad volumes
31%
9%
8% 7% 7% 7% 7% 6% 6% 6% 6%
Ahmedabad
New Delhi
Hyderabad
Vadodara
Lucknow
Nagpur
Indore
Others
Surat
Pune
Jaipur
Kerala
2%
West Bengal 5%
Karnataka 5% 20% Gujarat
Madhya Pradesh 6%
Tamil Nadu 7%
18% Maharashtra
New Delhi 7%
Rajasthan 9%
In the M&E sector, radio may be small, but its power in In 2024 we anticipate growth from new clients, higher
reaching the masses is unparalleled. We are embracing retail contributions, and a festive season price increase.
innovation to ensure our space in the digital landscape, Key drivers will be solutions-oriented sales, events,
creating a level-playing field to coexist. activations, digital platforms, and influencers. The
industry’s well-being hinges on government support for
TRAI recommendations, like the mandatory FM tuner
activation in mobiles and detaching radio license fees
from NOTEF.
The fusion of content and tech has redefined how Extremely upbeat about Radio for the upcoming year,
consumers engage with content, delivering solutions the current FY went as per our expectation. Radio has an
for brands. Through AI-driven personalization, virtual edge over other mediums, owing to the hyperlocal nature
influencers, experiential AR/ VR, on-ground activation of the business resulting in high ROI to advertisers.
and micro marketing, a new era unfolds, creating
precisely tailored authentic content and connections with
audiences.
Sports
Media & entertainment
189
Executive summary
Sports segment grew 11% in 2023
Sports segment revenues and growth
50 -20%
-40%
-35%
0 -60%
2019 2020 2021 2022 2023
Revenues (INR billion) Y-o-y % growth
INR billion (gross of taxes) | GroupM ESP
1
Source: BARC (https://www.afaqs.com/news/marketing-initiatives/2023-the-year-when-cricket-on-television-created-and-recreated-history#:~:text=As%20per%20
BARC%2C%20803%20million,for%20TV%20viewership%20in%20India.)
Media & entertainment
Revenues
The segment grew 11% in 2023 Media spends declined
► While the sports segment grew 11% in 2023, media ► IPL rights were split between two media houses for
spends declined by 1% and comprised 48% of the the first time, and that was estimated to have led to a
segment’s revenues as compared to 53% in 2022 fall in total revenues for the 2023 season amid a soft
advertising environment, though CWC advertising
► Sponsorship revenues grew by 24% in 2023, comprising
provided a year-end boost3
47% of sports segment revenues, up from 30% in 2021
► Television ad revenues from the IPL were estimated by
► Endorsement revenues also grew at 24%, in comparison
us to fall around 50% over the previous season
20% in 2022
► Digital ad revenues grew 40% as all IPL matches and
many Cricket World Cup matches were available for
Cricket revenue grew by 13% in 2023 free on OTT platforms, as against the previous season,
where they were behind a paywall
Revenue split: cricket vs. emerging sports
► The 2023 IPL was estimated to have 505 million
200 viewers tuning in to Disney Star’s live broadcast on
television, while the OTT app JioCinema attracted 449
175 24 million viewers4, a sign of the significant reach free
25 cricket can generate across platforms
150
► Connected TV growth created a premium ad offering
125 for niche, D2C and high value brands, as well as for
100 13 large brand launches, targeting a much-desired male-
21
skewed young and working population audience base,
75 162
143 and commanded a three to five times rate premium over
9
corresponding mobile ad inventory5
50 99
86
25 61
0
2019 2020 2021 2022 2023
Cricket Emerging sports
INR billion (gross of taxes) | GroupM ESP
2
TAM
3
Industry discussions; ad volume and rate analysis
4
https://economictimes.indiatimes.com/industry/media/entertainment/media/disney-star-jiocinemas-ipl-2023-viewership-fight-ends-with-record-numbers-for-both/
articleshow/100843590.cms?from=mdr
5
Industry discussions
191
18.9
40 15.5
20 34.8 36.8
0
2022 2023
Ground sponsorship Team sponsorship
Franchisee
INR billion (gross of taxes) | GroupM ESP
Sports consumption
Sports viewership grew 28% on Cricket’s share of TV viewership
television in 2023 reached 87%
Sports viewership on television TV viewership share
2% 1%
100% 2%
60,000 6%
8% 2%
8%
50,000 6,776 80% 8%
40,000 60%
11,046
30,000 87%
40% 74%
48,263
20,000
31,822 20%
10,000
0%
0 2022 2023
2022 2023 Cricket Wrestling Kabaddi
Cricket Other sports Soccer Other sports
BARC | MF 2+ Ind UR | Jan-Dec | Gross AMA (in million) BARC | MF 2+ Ind UR | Jan-Dec | Gross AMA
► In 2023, the overall TV viewership for sports surged by ► 803 million Indians watched sports in 20236,
28% year-on-year, rising from 42.9 billion AMA to 55.0 representing a 5% growth compared to 2022
billion AMA
► Major cricket events like IPL, Asia Cup, and Cricket
► Cricket viewership soared by an impressive 52% in 2023 World Cup achieved high levels of reach and
compared to 2022, due to several IPL and CWC games consumption:
being aired for free on Television as well as a high-
• IPL reached 505 million viewers, consuming 428
intensity performance by India in the CWC
billion minutes, marking the highest viewership and
► Other sports witnessed a notable decline in viewership consumption in all IPL editions
of 39% as the FIFA world cup had helped increase
• Furthermore, IPL 2023 experienced a 30% increase
viewership in 2022, and the Pro Kabaddi season started
in TV ratings compared to 2022, achieving a rating
only at the end of 2023
of 5.37
• The Asia Cup reached 306 million viewers,
consuming 87 billion minutes, setting new records
for viewership and consumption across all editions
• Similarly, the ICC Men’s Cricket World Cup 2023
reached 520 million viewers, consuming 422 billion
minutes, surpassing previous CWC editions in both
viewership and consumption
► Wrestling retained its status as the second most viewed
sport in India, holding an 8% share of viewership
► The viewership share of Kabaddi and Soccer decreased
to 2% each in 2023, down from 8% and 6% respectively
in 2022 for reasons stated earlier in this section
6
Source: BARC
7
Source: BARC
193
8
Source: CNBC TV18 (https://www.cnbctv18.com/sports/ipl-2023-viewership-hit-449-million-overall-on-viacom18-says-ceo-anil-jayaraj-18569991.htm)
9
Source: moneycontrol.com (https://www.moneycontrol.com/news/trends/sports/ipl-2023-final-becomes-most-watched-digital-event-globally-gets-over-12-cr-view-
ers-10716111.html)
10
Source: sportspromedia.com (https://www.sportspromedia.com/news/ipl-2023-final-viewership-viacom18-jiocinema-streaming-record/)
11
Source: Inc 42 (https://inc42.com/buzz/ott-wars-heat-up-with-free-sports-like-cricket-streaming-but-is-ad-revenue-enough/#:~:text=The%20streaming%20plat-
form%20registered%20a,Kings%20and%20the%20Gujarat%20Titans.)
12
Source: Hindustan Times (https://www.hindustantimes.com/cricket/odi-world-cup-2023-breaks-broadcast-and-digital-records-101703674745669.html)
Media & entertainment
Future outlook
2024 promises a lot of sporting action A new business model will emerge
for cricket
► In
► 2024, exciting prospects are anticipated in both
cricket and emerging sports, with the T20 World Cup ► To
► enable a sustainable business, owners of high-
scheduled in June in the West Indies and the USA, priced cricket rights will re-look at the business model
presenting an opportunity for India to secure an ICC for cricket, experimenting across data subsidization,
trophy win after a decade e-commerce linkages, premium 4k and 8k bundles, CTV
packages and limiting features for free matches in order
► The
► IPL and ICC sponsorships are up for renewal, to incentivize subscription
marking a significant tipping point on the business
table, and India’s active participation is expected to
continue
Non-cricket sports will rethink
► The
► Paris Olympics in July is expected to be a game- strategy
changer, building on the success of the Tokyo Games,
with high expectations for Indian athletes to emerge as ► Between
► football, kabaddi, kho-kho and wrestling, a
popular icons on the international stage significant audience base will be built, which will be
monetized through ad sales, sponsorships, live event
► The
► growing cultural impact of Indian athletes revenues and gamification
worldwide aligns with the mainstreaming of sporting
habits in society, emphasizing health, wellness, fitness- ► Other
► niche and premium sports like rugby, basketball,
oriented activities, and recreational sports baseball, etc., will go premium and build a model around
subscription and merchandizing
► Anticipated
► developments in fan engagement, including
virtual experiences and augmented reality, coupled with
a focus on inclusiveness, reflected in the Hangzhou Audiences will segment
Asian Games, where one-third of winners were from
rural areas, contribute to India’s evolving sporting ► Viewership
► will be maximized by offering live sports
legacy with differentiated content and features across CTV,
linear TV, mobile and free TV
Sports rights value will rationalize
► Pricing
► and ad rates will vary across all media to enable
a wider range of advertisers to invest in the sports
► Given the merger of two of three large sports
genre
broadcasters, we expect the rights market to rationalize
from currently unsustainable highs
► Interest in non-cricket sports will consequently remain
flat, since focus will be on monetizing high-value rights
195
#Reinventing sports
Create heroes and build IPs Go short, go faster!
► As
► time constraints in metros reduce the available
► To
► expand sports reach in the nation, developing new discretionary time, build shorter events like T10
and contextual IPs centered around sports rivalries, tournaments, one-day cricket matches with two innings
iconic figures, and other compelling themes is crucial of 25 overs each, shorter halves and quarters, and rules
► To
► foster the growth of sports beyond men’s cricket, that incentivize quick action like powerplays
cultivating sports heroes and creating corresponding
content are essential steps to attract a broader
audience
Build a culture of weekend sports
events
Integrate esports ► Create
► a calendar of weekend sports events for friends
and families to consider in their entertainment options,
► Marquee
► sports properties are anticipated to integrate combined with food and beverage and entertainment
esports as an extension of their tournaments. Sports
leagues such as IPL, ISL, and PKL should incorporate
esports provisions and take esports viewership Build distribution efficiency
mainstream and engage viewers throughout the year
► As
► technology advances rapidly and mobile sports
Enable TVOD at scale consumption grows, hybrid models for distributing
live events are anticipated to emerge. These models
► Digital
► viewership saw a significant growth in the last would include direct-to-mobile technology, enabling
few years. With free streaming provisions and more content delivery without the need for an active internet
widespread adoption of 4G and 5G spectrums, the trend connection
is expected to persist. However, the sports digital rights
owners are likely to experiment with their monetization
strategies, leveraging innovative pricing models like
sachet pricing for niche sports content, premium 8k
feeds, and exclusive fan offerings
Vinit Karnik
Business Head, GroupM ESP
Expert
speak
AVOD model for live sports serves the best interest of all 2023 saw sports broadcasts touching record viewership
key stakeholders – consumers, advertisers, rights owners levels across linear and digital platforms. Despite
and media platforms, and in the process helps maximize audience fragmentation and attention attrition, sports
reach and monetization. continues to demonstrate strong capacity for aggregation
and immersive engagement. Fuelled by growing fandom,
increasing private investment and government support,
the industry is poised for unprecedented growth.
Sports continues to be the reach driver for both TV & OTT India’s sporting future will thrive on optimizing existing
platforms with pan india reach higher than any other infrastructure, prioritizing maintenance, and entrusting
genre. The growing popularity of non-cricket sports new builds to governments. By embracing CSR,
has ensured that. Live sports is still largely consumed transparency and community engagement - perhaps
on bigger screens with more than 700 million viewers through retail investing in sport - India will produce
watching sports on TV in 2023. champions in sports beyond cricket.
Indian content landscape
Media & entertainment
Film OTT
2% 2%
3,888 2,986 1,555
1,438
647
EY estimates | Includes content that was broadcast on TV, released in ComScore (excludes dubbed versions)
theaters or on OTT platforms. Excludes unorganized creator economy, news
bulletins, social and short-form content
OTT 1.0%
105
TV (inclusive -2.3% 57
news bulletins)
1,187
14.0
10.2
14%
70% Comedy
11%
2%
Reality
7%
Mythology/ 7%
2020 2021 2022 2023 2026E documentary 3%
2022 2023
Documentary
Theatrical 23% 27% 50%
OTT fiction
OTT non-fiction
Music 36% 48% 16%
OTT films
TV non-fiction
Satellite 76% 14% 10%
0% 20% 40% 60% 80% 100%
Q. What has been the production cost inflation in 2023 in comparison to 2022?
Theatrical films
OTT fiction
Documentary
OTT films
TV fiction
OTT non-fiction
TV non-fiction
94% respondents expect an impact Talent, VFX and story costs are
on content volumes and margins in expected to drive cost increases in
2024 as buyers focus on profitability 2024
Q. The industry is witnessing consolidation and Q. How are content creation costs expected
several buyers are focusing on profitability. What to change in 2024?
impact do you foresee on the demand for content
in 2024 due to these reasons? (Select all that apply) Key talent
9% 23% 68%
(actor, director)
Reduction in green lighting
85%
of new projects by key buyers
VFX 13% 39% 48%
No material change
6%
from 2023
17%
International 16% 36% 48%
Ban single-use
80%
plastics
Track food
wastage
Segregation of dry
and wet waste expect to see an increase in formula-based films with
more ‘masala’ content, given the successes of 2023
Track modes of
travel by the crew
77%
Track of electricity
during break time
Use of solar
DG sets
0% 50% 100% expect the proportion of VFX cost to total production
cost will increase over the next 2 years
Not implemented Planning to implement
Implemented already
51%
Film 30% 15%
OTT 7% 79%
believe that AI can enable better budgeting,
scheduling and script breakdowns than conventional
TV 15% 85% methods
Trends
Prime Video India
Viewership and engagement Content development
99% ~100
1,000+ original series and
titles premiered in movies are in various
of India’s pin codes generate India for Prime Video stages of production
viewership for Prime Video customers
in 2023 124 and development 6
awards won in of the top 10
#1 2023 for its original highest-rated Indian
streaming shows on IMDb
series and movies.
Panchayat S2 won the (since streaming began
India has the highest percentage of Best Web Series in India) are on
Prime members who watch Prime Award @ IFFI Prime Video
Video each month across all locales
9 6,000 95%
new channels titles are offered in rentals take place
launched in 2023 the movie catalogue across 95% of India’s
pin codes
28,000 75%
hours of additional
content selection are offered of titles get rented at
through 20+ least once every month
channel partners
25%
of the audience for
Global consumption; local stories Indian titles comes from Indians consumed
outside India international content
60% Indian content
of customers on
Prime Video stream
trends in the Top Made in Heaven
S2 entered the Top
75%+
10 on Prime Video
content in four or worldwide for 43 10 lists in over 20
more out of 52 countries of Indian PV customers watch international
languages 50% weeks Farzi was shows and movies (in English or local languages)
of viewership of released in
local language 37 languages and
content comes from streamed in over
25%+
outside the home 170 countries
states of the total viewing time of international shows
and movies is now in Indian languages
Trends
Netflix India
Netflix continued to double down on local content
140 26 25%+
Netflix films and series launched Netflix films and series Revenue growth Netflix
in India since 2018 launched in 2023 recorded in 2023 (in INR)
62 60% 100%
Indian films and series featured Netflix scripted series from India Netflix scripted films from India
in the Netflix Global Top 10 for featured in the Global Top 10 for featured in the Global Top 10 for
non-English titles (up from 47 non-English TV non-English films
in 2022)
35+ 111
49 of 52 countries
Indian titles featured in the Global In which The Railway Men, Chor Awards won by Netflix India films
Top 10 for non-English films and Nikal Ke Bhaga and Mrs Chatterjee and series in 2023
series for 49 out of 52 weeks vs Norway were in the Global Top 10
across non-English films and series
Extraction 2,
Heart of Stone,
Wednesday: Season 1,
One Piece: Season 1: French, Japanese and
International titles Korean: Most watched non-
that featured for the Indian languages on Netflix
maximum number of after English
weeks on Netflix
India Top 10
All data has been provided by Netflix India and has not been independently verified by EY.
Expert
speak
Ektaa R Kapoor
Balaji Telefilms Ltd.
2024 promises further consolidation and bottom-line focus With rapid tech-evolution and shifting consumer
in the M&E space, which might have the short-term impact behaviours, we stand on the cusp of a transformative
of lower content spends at lower output volumes but will era. Storytelling will become even more immersive with
ultimately facilitate a sustainable business model and streaming reality, hyper-local collaborations, regional
inspire innovative and differentiated content creation. content, and global access. Going back to basics and
creating unique characters and mainstream storylines
would usher in much larger audiences.
Amidst a challenging landscape ridden with pricing There is a massive need to share the stories of our great
pressures and consolidation, we can expect continued nation. Every Indian child must know India’s stories,
original content production for streaming platforms, which have shaped generations. Let’s tell our very local
dominance of sports, increased adoption of AR Indian stories in a global way and create our own Bharat
experiences, and continued focus on UGC and interactive verse.
storytelling formats. Television and cinema will adapt to
these changing dynamics to stay relevant.
Abhimanyu Singh Sameer Gogate
Contiloe Pictures BBC Studios - India Productions
Production houses are going to see a challenging year In the dynamic entertainment landscape, the key is to not
ahead, with industry consolidation leading to a slowdown just anticipate the trends, but to shape them. The focus
in decision making and rapidly changing audience should be on creating stories with purpose and content
consumption patterns. Content creators face minimal that bridges cultures, yet stays relevant. Content creators
margins for error, both creatively and commercially. should be at the forefront of innovative, diverse, and
impactful stories that resonate with audiences.
The viewer is spoilt for choice as content is increasingly, Consolidation would be the key-word for the coming
no longer bound by form, language, geography, or year with mergers creating larger entities. Box Office will
screens/ mediums. Innovation in storytelling and business consolidate after gains of 2023. Regulated AI infusion will
models including multiple revenue streams will define the lead to an irreversible, positive change overall.
M&E growth story.
Mautik Tolia
Bodhi Tree Multimedia
Absolute ad growth 2023 ► New media generated 105% of total ad growth, while
5 2 traditional media (excluding television) added another 23%
5
8
77 75 ► Television advertising reduced the growth by 28% as sports
advertising on TV fell compared with 2022, and HSM
-21
markets saw lower yield categories increase their share of
ad volumes and a ban
on certain categories like crypto, gaming amidst betting,
and D2C brands
50%
0%
2023 2024E 2026E 2023 2024E 2026E
INR billion (gross of taxes) | EY estimates
Digital + online gaming Traditional
► Advertising is expected to grow 10% in 2024 to reach EY estimates
INR1.25 trillion
► Digital media comprised 31% of total ad spends in
► Till 2026, advertising is expected to grow at a healthy
2019, which increased to 52% in 2023
9% CAGR, with digital media growing at 14% and
traditional media growing at 5% ► Digital advertising is expected to reach 57% by 2026
► Key factors which will drive growth include: ► Digital ad numbers we have considered include the SME
and long-tail digital advertising spends of INR208 billion
• Increase in India’s per capita income from
in 2023, who spend on search, social and e-commerce
US$2,500 in 2022 to around US$3,000 by 2025,
platforms; their contribution to total advertising is
and reduction of income inequalities due to direct
expected to reach INR304 billion by 2026
subsidy transfers, employment guarantee schemes,
investment in infrastructure
• Rural growth and growing middle class will also be
key factors
• The growing SME advertiser base will increasingly
spend on advertising in pursuit of India’s US$5
trillion GDP ambition
► Segmental growth will be driven by:
• Digital: Growth in 5G will drive time spent,
increased smartphone penetration, growth in
active CTV homes, rich consumer data to enable
segmentation, attribution accuracy
• TV: Efficient CPRP, premium properties, long-
duration fiction content and growth in free TV base
• Print: Access to educated and richer audiences,
events revenues, elections
• OOH: Digital OOH screen growth, transit media,
premium billboards, better measurement system
• Radio: Mandating radio receivers in mobile phones,
non-FCT revenues, SME advertising
• Cinema: A steady slate of theatrical releases and
consolidation in the multiplex ecosystem
211
Respondent profile
BFSI 14%
5% Retail
3% E-commerce
2% Telecom
Others 22%
Market sentiment
I. Two in three marketers were positive about II. 79% of marketers expected to increase
consumer spending their ad spends in the next two years
Marketers' outlook on consumer spending How do you expect your total ad spends
to grow over the next two years?
69% 55%
65% 54%
24%
24% 21% 21%
20% 18%
11% 9%
0% 1% 3% 2%
1% 1%
I feel positive It will stay Consumption Not sure/ Increase Increase No Reduce Reduce
about the the same will decline prefer not by over by under significant by under by over
economy, spending to say 10% 10% change 10% 10%
will grow
2022 2023
2022 2023
EY Marketer Survey 2024 I % of total respondents EY Marketer Survey 2023 & 2024 I % of total respondents
Media & entertainment
95%
Reduce by over 10%
Martech implementation
16% 15%
13% 14% Content production
at scale
The connected consumer
3%
0%
Influencer marketing
30%+ 20%-30% 10%-20% Up to 10% Nil
Incremental reach
across media
2022 2023
0% 5% 10% 15% 20% 25% 30% 35%
EY Marketer Survey 2023 & 2024 I % of total respondents
UX personalization
Basic ad
metrics
Full UX Customer acquisition
personalization
Brand lift
studies
Custom audience (awareness)
rs
sume Integrated reach
d con
rstan
de Sentiment analysis
Un
Audience
cohorts
Trigger-based
targeting
Recency, frequency,
monetary cohorts
(RFM)
gy
Brand preference
te
tra
os
oli
rtf
po
&
ry
Brand management
go
te
Ca
Definitions:
Full brand metrics
Data beginners: Not yet started/ just about starting the optimization
journey of using consumer data for marketing and large
gaps exist in data availability and ROI measurement, as they
are yet to invest in data capabilities and skills and define
processes around governance and access. No 1P data exists
Data enthusiasts: High use of data for marketing activities,
but with gaps in governance and ownership, and lack
of access to resources, as they are yet to invest in data
capabilities and skills to improve governance and processes.
Ownership exists of some 1P data of its customers
215
Limited
Marketing plan
implementation • View of UX friction
Marketing plan • Customer insights Comprehensive ROAS
Online optimization • Attribution studies
reputation
management
AI/ML
Ad fraud SMS
An
aly
CRM e-mail marketing tics
Retargeting
O2O2O
targeting
pla
nn
ing
Customer
experience
Driving
innovation
Media plan
optimisation
7%
Develop in-house
Partner with external
technology providers
Explore strategic
alliances
capabilities
Acquisitions
► According to the report, most of these impressions ► In 2023, Juniper Research reported that ad fraud caused
came from Made for Advertising (MFA) websites which a loss of US$84 billion in global ad spend. This figure is
had significantly poor traffic projected to increase to US$172 billion by 2028
1
https://adalytics.io/blog/search-partners-transparency & https://adalytics.io/blog/invalid-google-video-partner-trueview-ads
2
https://www.ana.net/miccontent/show/id/rr-2023-12-ana-programmatic-media-supply-chain-transparency-study
3
mFilterIt’s analysis of over 50 Campaigns from mobile-based publishers
219
Our talent base coupled with strong adoption of all the The Indian AdEx story continues to be strong at the macro
latest technologies including AI, makes it a very exciting level, though in 2024 we may face some headwinds in the
future for the Indian M&E industry on the global stage. first half on account of global uncertainties.
Growth will be the dominant theme for the industry. Personalization & momentization are creating
Competitiveness will accelerate. Driving and ensuring contextualization to content and communications across
smart profitability will be the mantra. The Indian new media platforms. It is drawing audience attention
consumer wins! and advertisers are leveraging these opportunities for
instant transactions to maximize ROI.
Shashi Sinha Harsha Razdan
Mediabrands India DENTSU
We expect the M&E business to grow due to the coming AI transcends mere buzzwords and trends; it’s
elections and some recovery in rural markets. Further, a formidable force reshaping our daily lives,
with consolidation amongst players, there will be a push communication, creativity, and connectivity.
to increase value. Empowering us to delve into uncharted realms of
storytelling and immersive experiences, AI is the
unequivocal future, with our industry leading the charge.
As India leads global discourse with its economic surge AI will be the driving force in advertising, reshaping
and demographic dividend, the future hinges on impactful every facet from the personalization of ad creative to
human-centric progress. AI’s role in simplifying lives precise targeting and seamless ad delivery. Further,
and igniting creativity heralds a new era. Sustainable phone lock screens will become screen zero for AI-
growth demands innovative communication, simplifying powered serendipitous discoveries.
experiences, and fostering meaningful connections.
Media & entertainment
Enabling
environment
223
Indian economy
Media & entertainment
225
Source (basic data): IMF World Economic Outlook October 2023; IMF World Economic Outlook January 2024 update
Notes: (1) For India, a year represents the fiscal year. For instance, the year 2020 refers to the fiscal year 2020-21.
(3) Growth for 2024 and 2025 are as per projections by the IMF (January 2024).
► The National Statistical Office (NSO) has estimated India ► The FY25 Union Budget has shown a strong
to continue showing a strong real GDP growth at 7.3%1 commitment towards fiscal consolidation while retaining
in FY24, as compared to 7.2% in FY23. This robust its emphasis on growth supporting capital expenditures.
performance has been delivered largely by investment These measures would enable laying down a strong
growth led by the GoI’s emphasis on capital expenditure foundation for robust medium-term growth
► The IMF, in its January 2024 issue of the World Economic ► India is expected to have contributed more than 15% to
Outlook Update, has forecasted India’s growth at 6.7% global growth in 2023 (FY24)2. The IMF expects India’s
in FY24, stabilizing at 6.5% over the next two years, growth momentum to be sustained in the medium-term
reflecting resilience in domestic demand. India is projected owing to its foundational digital public infrastructure
to remain the fastest growing major economy in the and a strong government infrastructure program3
medium term
► India’s 2024 (FY25) growth is projected to be 2.1 times
global growth and 1.6 times EMDE growth in this year. It is
also projected to outpace China’s growth by 1.9% points
1
CMoSPI’s first advanced estimates for FY24 released on 05 January 2024
2
https://www.imf.org/en/Blogs/Articles/2024/01/12/charts-spotlight-inflation-economic-growth-globalization-and-climate-change
3
IMF Article IV Consultation for India (December 2023)
Media & entertainment
Per capita nominal GDP is projected India is expected to become the third
to grow by 7.9% in FY24 largest economy in 2027 (FY28)
► According to IMF’s World Economic Outlook (October
Per capita nominal GDP growth
2023), India overtook the UK as the fifth largest
20 economy in nominal US$ market exchange rate terms in
17.2 2021 (FY22). It is projected to become the world’s third
largest economy by 2027 (FY28), crossing Germany
15 14.9 and Japan
► In 2024 (FY25), India’s nominal GDP at market
9.8 9.5
10 exchange rate is estimated at US$4.1 trillion,
5.3 accounting for 3.7% of global GDP
7.9
5 ► In purchasing power parity (PPP) terms, India
is estimated to be the third largest economy at
PPP$14,261 billion in 2024 (FY25)
0
GDP 2024
-2.4 Country Nominal PPP ($
Rank Rank
-5 (US$ billion) billion)
FY18 FY19 FY20 FY21 FY22 FY23 FY24 United States 27,967 1 27,967 2
Source (basic data): National Accounts, MoSPI, GoI
China 18,560 2 35,043 1
► India’s per capita nominal GDP is projected to increase
Germany 4,701 3 5,715 5
by 7.9% in FY24 to INR2,12,6004 (US$2,561.55) from
INR1,96,983 (US$2,373) in FY23 Japan 4,286 4 6,711 4
India 4,105 5 14,261 3
► Growth envisaged in India’s per capita income is
expected to support consumption growth, including United
3,588 6 3,985 10
that in the media and entertainment sector Kingdom
100
100
80
60
60
40 37
20 24
20
0
2011 2015 2019 2023 2027E
Source: Euromonitor, Goldman Sachs Investment Research
4
First advance estimates of National Income 2023-24 released by MoSPI on 05 January 2024
5
Assuming an average exchange rate of INR83.0/US$
6
Goldman Sachs Global Investment Research
227
30%
20%
10%
0%
2020 2021 2022 2023
-10%
-20%
-30%
Nominal GDP Advertising revenues M&E sector
Source: Advertising & M&E sector revenue: FICCI M&E reports | Growth (Basic
data): First Advance Estimates, NAS dated 05 January 2024, NSO, MoSPI
Note: While advertising and M&E sector revenues are estimated for a
calendar year, GDP estimates are for a fiscal year
► Broadcasting
7
https://www.livemint.com/Politics/hxnnl3jx9kaCHnKgsk9oQK/Govt-relaxes-foreign-investment-rules-to-revive-growth.html
229
Trends in FDI equity inflows into the information and broadcasting sector since
FY15 demonstrates a considerable inter-year volatility
FDI equity inflows in information and broadcasting sector (US$ billion)
1.6
1.5
1.3
1.2
1.0
0.8
0.8 0.7
0.6
0.5
0.4 0.3
0.3
0.2 0.2
0.0
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Apr-Sep Apr-Sep
Source (basic data): DPIIT, Ministry of Commerce and Industry FY23 FY24
DK Shrivastava
Chief Policy Advisor, EY India
M&A activity
Media & entertainment
231
M&A activity
This section has been compiled by EY using publicly available information and hence, is not a complete representation
of all deals during 2023.
Although deal activity in the industry was slow across the board in 2023, there are distinct signs for growth to pick
up in the coming months. Due to different factors across segments, we expect to see higher M&A activity in the
coming months. For example, the real money gaming segment, after a tumultuous period, is now settling down into
a new normal and it appears that the wait-and-watch approach for strategists is now over. Traditional media – led
by television – accounted for the biggest proportion of deal value and this would likely continue in the future. The
following pages outline the key highlights in M&A activity across all sections of the industry.
126 Television 3%
118
Advertising/
23%
672 Advertising tech
88 Online
77 26%
501 gaming
68 92
16% Others
2020 2021 2022 2023
Deal values were, therefore, driven Private equity and venture capital
by traditional media deals accounted for 61% of the total
transactions
Deal count and value analysis Deal count and value analysis
65%
59%
39%
14%
By count By value By count By value
Traditional media New media M&A Private equity
233
#Reinvent deals
Online gaming – no blocks! TV – interactive future
► With
► the GST related uncertainty put to rest by the ► The
► television segment is expected to see considerable
government mid last year, RMG platforms are settling M&A action, to protect and grow market share, in the
into a new ‘normal’ in terms of growth and profitability. aftermath of the Zee-Sony merger being called off and
We expect multiple innovations and incentives in the the impending merger between Disney with Viacom18
short term that will reduce the GST impact in the hands
► The
► domino effect is likely to a trigger a further
of consumers, and this will be followed by an aggressive
consolidation wave, especially in the regional and digital
wave of consolidation
segments, and to manage the rising cost of sports
► Some
► of the global strategics who had a wait and watch rights
approach towards RMG and fantasy sports could also
► TV
► distribution, too, is expected to witness the need
make their move in the next 12 to 18 months
for capital, as cable companies strive to offer wired
► With
► over 400 million gamers in India, casual gaming and wireless broadband to their consumers, with India
studios and esports players who are able to tap into and expected to grow wired broadband from around 38
monetize this massive user base will also continue to million homes today to 100 million by 20301
attract PE/ VC funding
► The
► evolution of mobile games globally will lead to India The race for IP
becoming a hub for game innovation and development. ► Underpinned
► by its monetization capabilities and
We can expect investments in game development and longevity, content IP is becoming increasingly valuable.
gaming service capabilities (including the set-up of Companies that create and own content – film, music
captives) to serve global gaming companies or digital - present lucrative investment opportunities
and are poised to attract interest of both domestic and
consolidAItion global strategic players
► We expect AI to positively disrupt how M&E businesses
work, both on cost efficiency and revenue enhancement OOH goes digital!
► We can expect deals across spaces like ad tech, ► Around 150,000 digital OOH screens2 have been
martech, dubbing, translation and titling, audio invested in, but the demand for such premium
regeneration, video creation, video editing, etc., infrastructures continues to grow as airports, metros
providing a lucrative investment opportunity for both and smart cities continue to proliferate. The investment
financial and strategic investors, especially as India can required to keep growing screens – mainly large format
become a global center for such services – can result in private equity deals and consolidation
among players from different geographies
1
EY estimates
2
Based on discussions with Moving Walls and Lemma Technologies
Tax environment
Media & entertainment
235
Direct tax
While no significant announcements were made during the latest Finance Act, 2024, once the full Budget is
announced, we would likely see how India implements the GLoBE regulations. We may also see India withdraw
Equalisation Levy once the global regulations are implemented. Some recent court judgements and clarification offer
more clarity on direct taxation for certain areas, including online gaming, telecom licensing fees and live events
1
Global anti-base erosion (GloBE) is a proposal to impose minimum tax rules for in-scope multinational enterprises (MNEs), such that MNEs will be subjected to top-up
taxes if the ETR at a jurisdictional level is less than 15%.
2
https://economictimes.indiatimes.com/news/economy/finance/relief-on-old-tax-demand-cant-exceed-rs-1-lakh-sanjay-malhotra-revenue-secretary/article-
show/107371044.cms?from=mdr
3
Circular 5/2023
4
Apex direct tax administrative tax body in India
5
https://economictimes.indiatimes.com/news/economy/finance/centre-collected-rs-600-crore-from-online-gaming-companies-in-tds/articleshow/104317201.cms?-
from=mdr
Media & entertainment
The advent of the ONDC7 open-source platform, an initiative I. Recent Supreme Court rulings on annual
by DPIIT, Ministry of Commerce, to democratize digital license fee arrangements
commerce in order to facilitate exchange of goods and
services had thrown up practical challenges in implementing Recently, the Apex Court of India pronounced a ruling on
the WHT provision on e-commerce transactions. One critical characterization of telecom annual license fees as capital
feature of the ONDC network architecture is that functions or revenue8. In this case, the telecom companies paid a
of the e-commerce platform/ marketplace can be unbundled license fee in two parts as per the telecom policy – (i) one-
and managed by separate entities. So, buyer-side platforms time entry fee; (ii) a variable annual license fee paid as a
(called Buyer Apps) handle solely buyer side functions – percentage of gross revenue earned. The Apex Court held
for example, customer onboarding, search and discovery, that both fees relate to a singular purpose of the acquisition
product selection and placing the order. Correspondingly, of telecom license to establish, maintain and operate
seller side platforms (called Seller Apps) handle seller telecommunication services and hence, one-time fee as well
side functions such as merchant onboarding, catalogue annual fee is capital in nature.
management, order flow management, etc. All transactions
between a buyer and seller are enabled through a Buyer The Court observed that for determining the character
App or Seller App. of the payments as capital or revenue, what is relevant is
whether the payments relate to or have a nexus with the
The above novel architecture of ONDC had led to challenges nature of the ‘original obligation’; the mode of payment,
in implementing the TDS provision on e-commerce whether lump-sum or installments, is immaterial.
transactions, where multiple e-commerce operators are
involved in a single buy/ sell transactions; in such cases, The ruling is likely to impact M&E industry as well, wherein
a question arose as to which ecommerce operator (Buyer the commercial/ franchise rights are obtained for the long
App or Seller App) in the supply chain should undertake term in consideration for periodic payments. Such payments
TDS obligation from the gross amount of sale/ service. may now be classified as capital in nature, and depending
To bring in clarity, CBDT through a Circular in December on facts and circumstances of each case, could be required
2023 clarified among other issues that Seller App (which to be amortized for tax purposes (as against availing an
eventually makes the payment to the seller) should be the upfront tax deduction).
person responsible for undertaking the TDS obligation in II. Taxability of broadcasting “live” and “non-
a multiple e-commerce operator scenario. Beside this, the live” content9
Circular also provided clarity on WHT treatment in relation
to platform/ convenience fees, GST, delivery/ packaging fee, In recent rulings, the Delhi High Court held that the right to
purchase returns, discounts offered by seller/ platforms, etc. broadcast “live events” is not “copyright” under the Indian
copyright law and accordingly, any payment for such right
cannot be taxed as royalty under the Indian income-tax law.
Further, on the issue of bifurcation of consideration between
“live” and “non-live” fees, the Court observed that if the
contracting parties have clearly stated and agreed that
there are two streams of fees, and payments have also been
made separately under two distinctive heads, then such
bifurcation cannot be regarded to be unsubstantiated or
arbitrary. Accordingly, the Court accepted fees split agreed
by the Parties under the Agreement to be 95% for “live”
transmission and 5% for “non-live” transmission.
The above ruling may have an impact on the media right
agreements entered into by sports bodies/ commercial
rights holders, more so where the contractual terms do not
separately bifurcate consideration for “live” rights and “non-
live” rights.
6
Circular 20/2023
7
Open Network for Digital Commerce
8
Bharti Hexacom Ltd. [TS-605-SC-2023]
9
Fox Network Group Singapore Pte Ltd [TS-28-HC-2024(DEL)] & Lex Sportel Vision Pvt. Ltd [TS-799-ITAT-2023(DEL)]
237
Indirect tax
The indirect taxation space has seen some interesting developments for the M&E sector in India. The heightened
activity which the sector has witnessed in the online gaming segment has necessitated the government to introduce
several clarifications for this sub segment. Besides that, several other interesting developments ruled the space,
including food and beverage taxation at cinema theaters, place of supply of advertisers, and imports of electronic
devices. We also see more clarity from the Ministry of Information and Broadcasting (MIB) on incentivizing content
and post-production services for co-productions with foreign countries.
Incentivizing content and post- ► Section B - Projects involving pure animation, post-
production and visual effects services: Eligible projects
production in India must involve services that are physically undertaken at
least in part in India by a company registered in India,
The MIB provides up to 30% incentive for international on behalf of a foreign company
productions in India for shoots as well as for animation,
post-production and visual effects services and for official Eligible projects:
co-productions with foreign countries.
In the recent guidelines issued by the MIB, such incentives Feature films/ animation feature films (a minimum of
are available for international production companies 1
72 mins duration)
applying through an Indian line producer/ line production
services company, animation, or post-production agency.
The budgetary outlay of the Incentive scheme is INR1.5 2 Commercial TV shows/ series (per season)
billion for FY 2023-24 and FY 2024-25 each.
Summarized below is the overview of the scheme.
3 Web shows/ series/ animation series (per season)
I. Part I - Incentives for production of foreign
films in India
► Section A - Incentives for live shoots in India:
International productions permitted by MIB or the ► International producers can claim a reimbursement of
Ministry of External Affairs (in case of documentaries) up to 30% of QPE in India. Additional bonus of 5% for
after April 2022 are eligible to apply through an Indian significant Indian content, can be claimed subject to
applicant and the project must be shot or filmed at least conditions
in part within the territory of India ► Under this section as well, incentives are capped at
a limit of INR300 million per project. Minimum QPE
Eligible projects: requirements for animation, post-production and visual
effects services projects to be able to qualify for the
Feature films/ animation feature films (a minimum of incentive is INR10 million
1
72 mins duration) ► Application for this incentive is also to be made in two
stages along with prescribed documents
2 Commercial TV shows/ series (per season) II. Part II - Incentives for official
coproductions under audio visual
coproduction treaty
3 Web shows/ series/ animation series (per season) ► This scheme incentivizes projects which have been
granted the “Co-Production” status by MIB after 1 April
2022. Official Indian co-production is a production (or
“Project”), between Indian producers and producers
4 Documentaries (a minimum of 30 mins in length)
of countries made under provisions of one of India’s
bi-lateral co-production treaties which has been granted
official ‘Co-production Status’ by MIB
► An international producer through an Indian line
producer can claim a reimbursement of up to 30% of the ► Currently, India has such treaties with 16 countries10
qualifying production expenditure (QPE) in India. Apart ► For all qualifying projects, an Indian co-producer can
from this, a 5% bonus can be claimed for employing 15% claim a reimbursement of up to 30% on qualifying co-
or more Indian manpower and an additional bonus of production expenditure in India subject to a maximum
5% for significant Indian content, subject to conditions of INR300 million
► Incentives are capped at a limit of INR300 million per
project. Minimum QPE spending threshold for live
shoot projects in India is INR30 million with no such
requirement in case of documentaries
► Post obtaining filming permissions, as a process, the
Indian applicant has to apply in two stages, along with
the requisite documents https://ffo.gov.in/en/co-productions/international-treaties
10
239
Regulatory update
Media & entertainment
Regulatory update
Filmed entertainment Violators may be punishable with imprisonment for a
term of at least three months, but which may extend to
three years, and with a fine of at least INR0.3 million
I. Amendments to the Cinematograph Act, but may extend to 5% of the audited gross production
1952 cost.
The Cinematograph (Amendment) Bill, 2023 ► Directions to Intermediaries: The Amendment has also
(“Cinematograph Amendment”) came into force on 11 clarified and reproduced intermediaries’ obligations to
August 2023. take down content upon receipt of orders from courts
One of the stated reasons for the introduction of the or authorized government and its agencies. Hence,
changes through Cinematograph Amendment was to curb intermediaries may be directed to take down pirated
the menace of piracy with the advent of internet and social content online.
media. The Cinematograph Amendment also sought to curb ► Age-based Indicators: If the Central Board of Film
piracy at the source, i.e., when films are recorded in theaters Certification (“CBFC”) is of the opinion that viewing
and thereafter exhibited. Popularly known as camcording. of such films by children between the ages of 7-18
Following are the key amendments. warrant guidance by parents/guardians, they will certify
► Re-certification of theatrically released films: A such films along with such age indicators6. Hence,
separate certification (i.e., re-certification) of a the Cinematograph Amendment suggest that the
film which has already been certified for theatrical certifications may be with age-based indicators such
exhibition by the CBFC as: as ‘UA 7+,’ ‘UA 13+,’ or ‘UA 16+’7 for films that have
received/are intended to receive a ‘UA’ certificate.
• Adults only under Section 4(2) (ii), i.e., ‘A’; or
• For certain groups only under Section 4(2) (iii), i.e., ► Other relevant changes: The other changes brought
‘S’ certification forth by the Cinematograph Amendment include:
This enables a producer to get re-certification of the • Revision in the validity of the certification granted
above category of films if they are intended to be re- by the CBFC8 from 10 years to now being perpetual
exhibited through television or such other media as may
be prescribed by the Central government. The press • Expansion of the scope of powers vested with the
release1 accompanying the Cinematograph Amendment central government9 to make rules related to (i)
indicates that the reason for introduction of this form and manner for applying for certification to
provision is to re-certify such films with appropriate the CBFC, (ii) manner of re-examination of a film
cuts and modifications to make them appropriate as UA by the CBFC, and (iii) media for re-exhibition of
films if they are re-exhibited through television, as only the film, and the form and manner for applying for
“Unrestricted Public Exhibition” category of films are such re-certification to the CBFC
permitted to be shown on television2. At present, no
other media has been prescribed3.
► Offences related to film privacy: The Cinematograph
Amendment prohibits4 any person from using an
audio-visual recording device in a place licensed to
exhibit films, with the intention of making/transmitting,
or abetting the making/transmitting of an infringing
copy of a film or a part of the film. It also prohibits
using or abetting the use of an infringing copy of any
film to exhibit such film for profits to the public at a
place for exhibition which is not licensed under the
Cinematograph Act, or in any manner that would
amount to infringement of Copyright5.
1
See: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1944435 (last
accessed February 15, 2024).
2
Rule 6, the Cable Television Networks Rules, 1994
3
Section 8(2)(cb), Amendment
4
Section 6AA of the Cinematograph Act.
5
Section 6AB of the Cinematograph Act.
6Section 4(2)(i) of the Cinematograph Act.
7
Section 4(2)(i) of the Cinematograph Act.
8
Section 5A(3) of the Cinematograph Act.
9
Section 8 of the Cinematograph Act.
Media & entertainment
II. No stay on release of The Kerala Story III. Supreme Court refuses to revoke the CBFC
There have been multiple instances of challenges to
certification granted to Adipurush, and
the screening of the movie ‘The Kerala Story’ since the dismisses the ongoing High Court cases
release of its trailer. regarding the stay on the release of the
• A petition was filed in the Kerala High Court10 , film
wherein the petitioners claimed that a particular In July 2023, the Supreme Court13 in the case of Mamta
community is being shown in bad light and prayed Rani vs Union of India dismissed a petition challenging
to stay the release of the movie the CBFC certification granted to Adipurush on the
• A PIL was filed in the Madras High Court against grounds of the content of the movie hurting religious
the members of CBFC and the producer of the sentiments and distorting sacred text. While dismissing
film. Several protests against the film were also the petition, the Supreme Court held that “sometimes
observed in Tamil Nadu the cinematic representations may not be an exact
replica of text and there has to be a little play in the
• In West Bengal, the Chief Minister banned the
same.” The Supreme Court also noted that the movie
movie to avoid public order situations and maintain
had appropriate disclaimers to depict the same, and
peace in the State11. A PIL filed in the Calcutta
stated that a body, i.e., CFBC has been formed under
High Court stated that the government’s ban on
the Cinematograph Act, 1952 to assess the aspects
the movie is in violation of Section 6(2) of the West
raised by the petitioners.
Bengal Cinemas (Regulation) Act of 1954, as the
movie-makers were not given a chance to defend Several petitions were also filed in Allahabad, Punjab
their stance regarding the movie before the ban and Haryana and Rajasthan High Courts wherein the
was imposed petitioners challenged the CBFC certification granted
to the movie and prayed for directions to stop the
Subsequently, the Supreme Court12 in the matter of
screening of the movie. The petitioners were aggrieved
Sunshine Pictures Pvt. Ltd. and Anr vs. Union of India
by the controversial depiction of the characters and the
and Others directed the Tamil Nadu government to
usage of dialogues in the movie. However, in October
undertake necessary safety and security measures to
202314 , the Supreme Court in the case of Super
ensure that all individuals involved in screening and
Cassettes Industries Pvt Ltd vs. Kuldip passed an order
viewing of the movie are safe.
in the essence of the order passed in the case of Mamta
Further, the Supreme Court observed that the Rani vs. Union of India (discussed above). The Supreme
prohibition imposed by the West Bengal Government Court stayed the proceedings pending before different
suffers from “overbreadth” and lifted such prohibition. courts regarding this movie holding the movie had been
released with appropriate certifications.
Lastly, in the same matter, the Supreme Court held
that the following disclaimers should be added to the
movie’s existing disclaimers due to the controversial
nature of the storyline: (i) There is no authentic data to
back up the suggestion that the figure of conversion is
32,000 or any other established figure, and (ii) The film
represents a fictionalized account of events forming the
subject matter of the film.
10
Writ Petition (C) 15126/2023 (S).
11
See: https://www.thehindu.com/news/cities/kolkata/west-bengal-govt-bans-the-kerala-story-movie/
article66826921.ece#:~:text=The%20West%20Bengal%20Government%20on,and%20harmony%20
in%20the%20State. (last accessed February 20, 2024).
12
Writ Petition(s) (Civil) No(s). 552/2023.
13
Mamta Rani vs Union of India, W.P. No. (713/2023).
14
Super Cassettes Industries Pvt Ltd vs Kuldip Tiwari, Transfer Petition (Civil) No. 1802-1809/2023.
243
IV. Self-regulatory body: Digital Publisher V. Delhi High Court objects the usage of
Content Grievances Council’s first order profanity and obscenity in the OTT web
against an OTT platform series
In July 2023, the grievance redressal board of In March 2023, the Delhi High Court16 in TVF Media
the Digital Publisher Content Grievances Council Labs Pvt Ltd and Ors. vs. State (Govt. of NCT of Delhi)
(“DPCGC”)15 heard a matter against the OTT platform objected to the usage of profane words and obscene
ULLU, wherein the complainant claimed that one content in the web series “Collage Romance” which was
of the platform’s shows only depicts obscenity and available to view on SonyLiv, YouTube, and TVF Play
nudity which is contrary to the IT Rules, 2021. The (an OTT platform). In the present matter, the Delhi High
complainant also stated that they had raised this Court assessed the following questions: (i) Whether
complaint with the platform, however, no action was content prima facie violated Section 67/ Section 67 A
taken by the same. The platform denied all the claims of the IT Act, (ii) Whether the publishers of the show
and stated that their content is available for viewership had complied with the IT Rules, and (iii) Whether there
to individuals above the age of eighteen, who possess is a need for regulation of social media platforms.
adequate maturity regarding the decision to watch
Upon analysis of the issues from the perspective of
the shows or not. The platform also listed the various
the IT Act as well as the IT Rules, the court directed as
safeguards deployed by them like disclaimers, 18+
follows:
mature content ratings, etc.
• The Delhi police to register an FIR under the
In order to assess the present matter, the DPCGC obscenity-related provisions17 of the IT Act against
deployed the Community Tolerance Test, wherein, the producers, cast members, and casting directors
“when the material is taken as a whole, and is found of the show
to be lascivious and tends to deprave a person who
• In case the episode of the show containing
reads or sees or hears that material, it is said to be
obscenity and profanity, which was in question
obscene.” The DPCGC observed that the content in
was posted on YouTube without any classification,
question hardly has any storyline or message that is
“appropriate remedial steps will be taken by
being communicated through the same. Further, the
YouTube, as per law, rules, and guidelines of the
DPCGC also observed that the primary objective of
IT Act issued by the Ministry of Information and
the content appears to be the depiction of nudity and
Technology from time to time”
sexual content. A lack of artistic content and creativity
was also observed in the show. In light of the same, • MeitY to take steps to enforce the IT Rules more
the DPCGC directed ULLU to take down the content strictly, and ‘make any laws or rules as deemed
in question or make edits to ensure compliance of the appropriate in its wisdom, in light of observations
same with the IT Rules. made in this judgment’
Further, MeitY and YouTube were not parties to the
petition, with the above direction, the Court forwarded
its order to (1) the Secretary of MeitY and (2) officials
of YouTube India.
15
Appeal by Mr. Satish Waghela - Oversee Grievance ID – 044 of 2023.
16
TVF Media Labs Pvt Ltd and Ors. vs State (Govt. of NCT of Delhi), CRL.M.C. 2214/2020 & CRL.M.A. 15761/2020.
17
Section 67 of the IT Act – Punishment for publishing or transmitting obscene material in electronic form.– Whoever publishes or transmits or causes to be published
or transmitted in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons
who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with impris-
onment of either description for a term which may extend to three years and with fine which may extend to five lakh rupees and in the event of second or subsequent
conviction with imprisonment of either description for a term which may extend to five years and also with fine which may extend to ten lakh rupees.
Section 67A of the IT Act – Punishment for publishing or transmitting of material containing sexually explicit act, etc., in electronic form.–Whoever publishes or trans-
mits or causes to be published or transmitted in the electronic form any material which contains sexually explicit act or conduct shall be punished on first conviction
with imprisonment of either description for a term which may extend to five years and with fine which may extend to ten lakh rupees and in the event of second or
subsequent conviction with imprisonment of either description for a term which may extend to seven years and also with fine which may extend to ten lakh rupees.
Media & entertainment
► The Telecom Act contains new provisions on the Bill retains statutory penalties such as advisory,
powers of the Central Government to notify standards warning, censure, and monetary penalties (linked
in respect of telecom services, manufacturing, and to the financial capacity of the entity, taking into
the import of equipment, and cybersecurity for account their investment and turnover) for operators
telecommunication services and networks, and a tiered and broadcasters. Provision for imprisonment and/or
dispute resolution mechanism fines remains only for very serious offenses such as
operating without registration or expired registration,
► The Telecom Act also provides for a dual method of
misrepresentation, etc.
allocation of spectrum, i.e., through auctions and
through administrative allocation. This is in line with ► Accessibility for Persons with Disabilities: The
global best practices and enables equitable distribution Broadcasting Bill provides enabling provisions for the
of satellite spectrum. It further requires all authorized issue of comprehensive accessibility guidelines
entities to establish an online mechanism for grievance
The Broadcasting Bill contains several open-ended
redressal of users. Lastly, the Telecom Act explicitly
provisions in relation to the powers of the Central
provides for extraterritorial application unlike the
Government, including regulating services intricately
previous regime
linked to broadcasting services
• Show an audio-visual disclaimer on the ill effects V. TDSAT holds that OTT platforms do not
of tobacco use for at least twenty seconds at the fall under the purview of TRAI
beginning and middle of the program
In October 2023, the Telecom Disputes Settlement &
Further, the Tobacco Amendment Rules prohibit Appellate Tribunal (“TDSAT”)32 in the case of All India
the display of brands of cigarettes or other tobacco Digital Cable Federation vs. Star India Pvt Ltd assessed
products or any form of tobacco product placement in the jurisdiction of the Telecom Regulatory Authority
online curated content; and display of tobacco products of India (“TRAI”), and therefore the applicability of
or their use in promotional material created for TRAI rules and regulations on over the top (“OTT”)
promotion online curated content. broadcasting platforms. In the matter, the petitioner
In addition to the requirements discussed above, the claimed that Star India violates Regulation 3(2) of the
language used for warnings should be same as that in Telecommunication (Broadcasting and Cable) Services
the online curated content. Lastly, anti-tobacco health Interconnection (Addressable Systems) Regulation,
warning message displayed should be legible and 2017, which requires broadcasters to provide signals
readable, with black font on a white background, and of the television channels to the distributors in a non-
the warnings “Tobacco causes cancer” or “Tobacco discriminatory manner. The petitioners raised this issue
kills” must be included. as Star India provided content on their Star Sports
television channel through payment of charges. On the
Reports show that compliance of the television industry other hand, on Hotstar, viewers were able to access Star
with the requirements under the 2004 Tobacco Rules Sports content for free. The petitioners further claimed
have been low. In fact, various aspects of the 2004 that the respondents should offer viewership of content
Tobacco Rules are currently under challenge before on both platforms in the same manner.
the Bombay High Court29 and the Supreme Court30.
Some of the above amendments were not found to TDSAT observed that in the present case, the
be practical in the context of online curated content respondent “wears two hats,” implying that Star India
publishers and hence there has been pushback by the is a broadcaster and an owner of the OTT platform. It
online curated content publishers as well31. was held that the definition of “distribution platform”
is exhaustive and does not cover OTT platforms under
its ambit. Lastly, the TDSAT held that prima facie, OTT
platforms are not covered by the jurisdiction of TRAI,
and therefore the TRAI Act, rules and regulations
thereunder.
29
Anurag Kashyap and Ors. vs UOI and Ors, Writ Petition No. 119 of 2014.
30
Union of India vs Mahesh Bhat and Ors., SLP (Civil) 8429-8431/2009.
31
See: https://indianexpress.com/article/india/tobacco-warnings-on-ott-amid-pushback-from-platforms-govt-looking-for-a-solution-8960900/ (last accessed: February
19, 2024)
32
All India Digital Cable Federation vs Star India Pvt Ltd, Broadcasting Petition/217/2023.
247
Online gaming ► Introduce obligations on OGIs including but not limited to:
• Requiring OGIs to verify user identity before
accepting any deposits in cash or kind, according
I. Amendments to introduce a central law for
to the Master Direction–Know Your Customer (KYC)
online gaming
Direction, 2016
In December 2022, the Ministry of Electronics and
• Requiring OGIs to appoint grievance redressal
Information Technology (“MeitY”) was appointed as the
officers who are resident in India, publish their
nodal ministry for online gaming. Similarly, the Ministry
contact details, establish a mechanism to make
of Youth Affairs and Sports is the nodal ministry for
complaints for users, and resolve grievances within
e-sports33. Previously, there was no central ministry
15 days from the date of their receipt
appointed for these industries.
• Providing an appeal process to the Grievance
On 6 April 2023, MeitY introduced the central
Appellate Committee for grievances not resolved by
regulations primarily for online real money games
GOs within 30 days from receipt of communication
through amendments (the “Gaming Amendments”) to
from the GO
the Information Technology (Intermediary Guidelines
and Digital Media Ethics Code) Rules, 2021 (the “IT • Prohibiting OGIs from financing through credit, or
Rules”). The Gaming Amendments introduced a enabling financing to be offered by a third party, for
light-touch, co-regulatory framework between MeitY playing online games
and the self-regulatory bodies (“SRB”), through
• Introducing requirements and criteria for verification
the appointment of SRBs. This was in line with the
of online real money games offered by OGIs e.g., the
government’s overall objective of reducing prescriptive
requirement to apply for verification an SRB on such
laws and enhancing the ease of doing business in India.
permissible online real money game
To sum up the major highlights, the Gaming
• Providing MeitY with the power to issue blocking
Amendments:
orders against permissible online real money games
► Specify certain online games as permissible, being:
However, in February 2024, it was reported that there
• a permissible online real money game (“PORMG”) was an apprehension that SRBs may be influenced
i.e., a game where a user makes a deposit in cash by gaming companies, which could result in a lack of
or kind with the expectation of earning winnings on neutral decisions from such bodies. In light of this, it is
the deposit, or reported that MeitY may have now withdrawn from the
co-regulatory approach and by default will now act as a
• any other online game that is not an online real
regulator for the industry34.
money game
The IT Rules as they stand would only be effective
► Introduce specific regulations for PORMG and online
upon the designation of at least three SRBs. Hence, the
gaming intermediaries (“OGI”), i.e., entities that enable
framework introduced under the IT Rules is currently
their users to access one or more online games
not in effect. The industry now awaits the next steps by
► Vest MeitY with the power to extend such regulations MeitY.
applicable to PORMG to other online games as well
In July 2023, a non-government organization (NGO)
► Require PORMG to satisfy certain conditions challenged the constitutional and legislative validity of
the Gaming Amendments before the Delhi High Court35.
• be an online real money game, where a user makes
It has been alleged in the petition that the Gaming
a deposit in cash or kind with the expectation of
Amendments go beyond the rule-making powers of the
earning winnings on the deposit, and
Information Technology Act (“IT Act”). MeitY, in response
• be verified by an online self-regulatory gaming to the challenge submitted that the central government
body has the authority under Entry 31 of the Union List and
the residuary powers vested with the central government
to regulate matters like online gaming.
33
These changes were brought about through amendments to the Government of India (Allocation of Business) (Three Hundred and Seventieth Amendment) Rules,
2022 in December 2022. Available at: https://cabsec.gov.in/writereaddata/allocationbusinessrule/amendment/english/1_Upload_3515.pdf (last accessed February
15, 2024).
34
See: https://indianexpress.com/article/india/meity-to-prepare-guidelines-soon-proposals-for-industry-body-rejected-centre-to-regulate-e-gaming-9156525/ (last
accessed February 15, 2024).
35
See: https://indianexpress.com/article/india/meity-to-prepare-guidelines-soon-proposals-for-industry-body-rejected-centre-to-regulate-e-gaming-9156525/ (last
accessed February 15, 2024).
Media & entertainment
II. Implementation of GST in online real ► Actionable Claims: Under the CGST Act, goods have
money games been defined to inter-alia include actionable claims, and
services have been defined to inter-alia mean anything
Goods and Services Tax (“GST”) is a destination-based that falls outside the ambit of goods40. An actionable
tax. While intra-state supplies are governed by central claim is inter-alia defined as a claim in debt, or a right
and state acts, i.e., Central Goods and Service Tax to enforce a debt. The CGST Act relies on the definition
Act, 2017 (“CGST Act”) and State Goods and Service of “actionable claim” as provided under Section 3 of the
Tax Act, 2017, inter-state supplies are governed by Transfer of Property Act, 188241.
the Integrated Goods and Services Tax Act, 2017
(“IGST Act”). The CGST Act provides that GST shall be The Supreme Court’s judgement in the case of Sunrise
applicable to the supply of goods or services, which Associates vs. Government of NCT Delhi42 had settled
are provided or agreed to be provided, in the course or the law on the point that a lottery ticket qualifies as
furtherance of business and for consideration. an actionable claim and is therefore not chargeable
to sales tax under the Delhi Sales Tax Act, 1975 as
The GST Council36 in its 50th and 51st meetings the definition of “goods” under that Act excluded
recommended levying GST at the rate of 28% on the full “actionable claims”. The court held that:
face value of bets placed with online gaming operators.
Consequently, certain amendments (“Amendments”) “A lottery ticket has no value in itself. It is a mere piece
were made to the Central Goods and Services Tax Act, of paper. Its value lies in the fact that it represents a
2017 (“CGST Act”) and the Integrated Goods and chance or a right to a conditional benefit of winning a
Services Tax Act, 2017 (“IGST Act”). The Amendments prize of a greater value than the consideration paid for
have been made effective from 1 October 202337 . the transfer of that chance. It is nothing more than a
In addition to the Amendments, Rule 31B has also token or evidence of this right…
been introduced under the CGST Rules providing the “The question is, what is this right which the ticket
mechanism for valuing supplies of online gaming represents? There can be no doubt that on purchasing
(“Valuation Rules”). a lottery ticket, the purchaser would have a claim to
► Online Money Gaming and Online Money Gaming a conditional interest in the prize money which is not
Operators: The Amendments have introduced a in the purchaser’s possession. The right would fall
definition of ‘online money gaming’ to provide that squarely within the definition of an actionable claim
the online games in which the players pay or deposit and would therefore be excluded from the definition of
an amount with the expectation of winning rewards, “goods” under the Sale of Goods Act and the sales tax
regardless of whether (i) the outcome of the game is statutes...”
dependent on skill or chance, or (ii) such games are A transaction of gambling or betting is also similar to
permissible under any law for the time being in force, a purchase of a lottery ticket as the person placing the
would qualify as online money gaming (“OMG”)38. bet acquires a conditional right to win the prize, or in
The scope of OMG is made wide enough to include other words, a conditional interest in the prize money
any game, scheme, competition, or any other activity (which is not within his / her possession). Hence, it is
or process, regardless of its legality or whether it likely for certain aspects of gambling and betting to also
is in nature of game of skill or game of chance. The be construed as the supply of actionable claims.
definition of OMG also provides that the deposit by
players may be in the form of money or money’s worth
or virtual digital assets (“VDA”)39.
36
The GST Council is a constitutional body responsible for making recommendations on issues related to the GST. Please see: https://gstcouncil.gov.in/gst-council
(last accessed October 25, 2023).
37
Notification No. 48/2023 – Central Tax and Notification No. 02/2023 – Integrated Tax dated 29th September 2023
38
Section 2(80B) of the CGST Act
39
Section 2(47A) of the Income-tax Act, 1961 defines VDA.
40
Section 2(52) of the CGST Act defines goods and Section 2(102) of the CGST Act defines services.
41
“a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of movable property, or to any beneficial inter-
est in movable property not in the possession, either actual or constructive, of the claimant, which the civil courts recognize as affording grounds for relief, whether
such debt or beneficial interest be existent, accruing, conditional or contingent.”
42
(2006) 5 SCC 603.
249
Schedule III of the CGST Act specifies transactions ► Valuation Rules: Valuation of taxable supplies is
that are neither considered as a supply of goods nor governed by section 15 of CGST Act which inter-alia
as a supply of service and are accordingly not subject provides that value of supply of goods or services shall
to GST. Prior to the Amendments, actionable claims, be the transaction value, which is price actually paid
other than lottery, betting, and gambling, formed part or payable for the said supply of goods or service.
of Schedule III43. Therefore, the supply of actionable However, section 15(5) of the CGST Act grants power
claims, other than actionable claims in relation to to the Indian government to notify certain supplies for
lottery, betting and gambling were not subject to GST. which valuation may be determined in a prescribed
Considering the jurisprudence distinguishing skill-based manner. By virtue of this provision, the Government
games from lottery, betting and gambling, actionable has notified online gaming and OMG to be supplies
claims in relation to betting and gambling were treated for which value of supply may be determined in the
differently than actionable claims in relation to game of prescribed manner45. Accordingly, Valuation Rules have
skill. been introduced for the purpose of determining the
value of supply in case of online gaming including OMG.
The CGST Act has been now amended to include a
definition of ‘Specified actionable claim’ (“Specified The Valuation Rules, inter alia, provide that the value of
AC”). Specified AC has been defined to include supply of online gaming, including supply of actionable
actionable claims involved in or by way of inter-alia claims involved in OMG, shall be the total amount paid
betting, gambling or OMG44. or payable to or deposited with the supplier by way
of money or money’s worth, including VDA, by or on
Schedule III has now been amended to provide that
behalf of the player46. It is important to note that the
supply of actionable claims other than Specified AC
Valuation Rules do not make a distinction between
shall neither be considered as a supply of good nor a
value of supply of goods and value of supply of services.
supply of service. Therefore, supply of Specified AC
It is further provided that any amounts refunded or
shall be considered to be subject to GST. Considering
returned by the supplier to the players (for any reasons
Specified AC includes actionable claims in relation to
whatsoever) will not be deductible from the value of
OMG, such supply shall be considered to be subject to
supply of OMG.
GST.
The rules also clarify that winnings redeployed by
Please note that in the erstwhile GST regime, an
players, without withdrawing, shall not be considered
argument could have been made that online import of
as amount paid to the OMG operator and, therefore,
intangible goods such as intangible actionable claims
should not be included in the value of supply47.
should not be subject to integrated GST as the point
of taxation for customs duty for the imports does not ► OIDAR Services and Mandatory Registration for
stand satisfied. In light of the recent Amendments Offshore OMG Operators: Online Information and
discussed previously, the Indian government has the Data Access or Retrieval (“OIDAR”) services have been
power to notify such intangible goods, import of which defined under the IGST Act48 to mean the services
would be subject to GST irrespective of whether Indian whose delivery is mandated by information technology
custom frontiers are crossed or not. Since supply of over the internet or an electronic network. Service
OMG has been notified by the Indian government, providers providing OIDAR services to unregistered
import of such supplies should be leviable to GST. Indian users are required to register and discharge the
GST liability arising from the supply of such services49.
The Amendments have specifically excluded OMG from
the meaning of OIDAR services. Therefore, operators
qualifying as suppliers of OMG should not be considered
as supplying OIDAR services.
43
Entry 6 of Schedule III.
44
Section 2(102A) of the CGST Act.
45
Notification No. 49/2023 of the CGST Act dated September 29, 2023.
46
Rule 31B of Central Goods and Services Tax Rules, 2017.
47
Explanation to Rule 31B and 31C of Central Goods and Services Tax Rules, 2017.
48
Section 2(17) of the IGST Act.
49
Section 14(2) of the IGST Act.
Media & entertainment
However, despite the exclusion from OIDAR, the III. High Courts grant stay on Show Cause
Amendments have cast an obligation on the offshore Notices issued by GST authorities to
OMG operators to obtain mandatory registration under several online gaming operators
the simplified registration scheme and discharge
GST on supply of OMG to persons in India. In case of In the Gameskraft case, the Karnataka High Court54
failure to obtain such registration, the GST department quashed a GST demand of INR210 billion by holding
may block any information generated, transmitted, that the buy-in amount received by the rummy operator,
received or hosted in any computer resource used for being a game of skill, should not be subject to GST at a
supply of OMG by such offshore OMG operator50. The rate of 28%. The GST department contested this decision
Government has also issued an advisory specifying in the Supreme Court of India55, where a three-judge
additional information in the GST registration forms bench granted an ad-interim stay on the Karnataka High
that enable mandatory registration of offshore OMG Court’s order.
operators and also enable to furnish information Following this development, the GST department-
regarding supplies of OMG51. initiated assessments on numerous online gaming
Prior to this amendment, several operators were taking operators by issuing show-cause notices. These show-
an argument that supply of OMG, being import of an cause notices have been challenged by online gaming
intangible actionable claim should not be subject to operators before various jurisdictional high courts.
GST. This is because in the erstwhile regime, GST could While various courts such as the Bombay High Court56,
not be levied on import of intangible goods (such as Sikkim High Court57, and Gujarat High Court58 have
supply of actionable claims with respect to OMG) as it granted a stay on the proceedings initiated by the GST
did not physically cross the customs frontiers of India. department, the Punjab and Haryana High Court59 has
The Amendments, however, have granted power to granted a stay on recovery of demand.
the Indian government to notify such intangible goods E-Gaming Federation and Head Digital Works60 also
to be subject to GST52. The Indian government has approached the Supreme Court challenging the
notified supply of OMG as goods (i.e., Specified AC) to provisions of CGST 2017 and the retrospective
be covered under such amendment, thereby, subjecting application of GST provisions where their matter was
import of OMG to GST53. consolidated with the Gameskraft case. The consolidated
► Tax Rate: The GST rates schedule for goods (“Goods matter is listed for hearing on 2 April 2024.
Schedule”) prescribes an entry for an actionable claim
in the form of chance to win in betting and gambling,
including horse racing, to be taxable at a rate of 28%.
This has been amended to include Specified AC as
goods which shall be taxable at a rate of 28%.
Further, gambling has been identified as a service
taxable at 28% under the GST rates schedule for
services (“Services Schedule”). Therefore, services in
relation to gambling should be taxable at 28%. Services
in relation to non-gambling activities should be taxable
at 18%. No amendment has been made to the Services
Schedule.
► Registration: As per the Amendment Acts, offshore
OMG operators shall be required to obtain mandatory
registration under the Simplified Registration Scheme
and discharge their GST liabilities accordingly. The
Simplified Registration Scheme allows the non-resident
operator to obtain a single registration (instead of
50
Section 14A(3) of the IGST Act.
multiple registrations for supply in different states). In 51
Please see: https://www.gst.gov.in/newsandupdates/read/609 (last ac-
the absence of such registration, the GST department cessed October 25, 2023).
52
Proviso to Section 5(1) of the IGST Act.
may block any information generated, transmitted, 53
Notification No. 03/2023 – Integrated Tax.
received, or hosted in any computer resource used for 54
Gameskraft Technologies vs Directorate General of Goods, Services Tax
Intelligence (2023 SCC OnLine Kar 18).
supply of OMG by such offshore OMG operator. 55
Special Leave to Appeal (C) No(s).19366- 19369/2023
56
M/s. Playersportz Media Pvt. Ltd. (WP(L) 31946/2023), Sachar Gaming
Pvt. Ltd. (WP(L) 31216/2023), Delta Corp Ltd. (WP 715 / 2023)
57
Delta Corp Ltd. (WP(C) 41 / 2023)
58
Nxgn Sports Interactive (Pvt.) Ltd. (19183 of 2023, 19243 of 2023)
59
Probo Media Technologies (Pvt.) Ltd. (WP(C) 11446 / 2023), M/s Joy Plus
Technology (Pvt.) Ltd. (CWP – 28011 / 2023)
60
WP(C) 001374 / 2023
251
IV. Bombay High Court clarifies that FDI in V. Madras High Court struck down the
gaming entities offering games without prohibition on online games of skill
real-money rewards would not amount to Tamil Nadu enacted the Tamil Nadu Prohibition of Online
gambling Gambling and Regulation of Online Games Act, 2023
In January 2023, the Bombay High Court61 in the effective on 10 April 2023 (“Tamil Nadu Act”). The Tamil
case of Play Games 24x7 Pvt. Ltd. vs. Reserve Bank of Nadu Act prohibited offering, playing, and advertising
India held that foreign investments in entities offering online gambling or games of chance with stakes, which
(i) games of skill, and (ii) games with no real-money include games that:
rewards, do not amount to gambling. The petitioner • Have elements of chance and skill and the element
had been periodically receiving FDI during the period of chance dominates over the element of skill; or
of 2006 to 2012 and had begun offering Ultimate Teen
Patti and Call it Right (the “Impugned Games”) after this • Require superlative skill to dominate chance; or
period. The petitioner had delayed complying with the • Are presented as involving an element of chance; or
reporting requirements for FDI received by them, and
this required the filing of a compounding application to • Involve any element of random event generation
the Reserve Bank of India. (e.g., cards, dice, or wheel).
The RBI directed the petitioner to approach the Games of poker and rummy were also sought to be
Department for Promotion of Industry and Internal prohibited through the Schedule to the Tamil Nadu Act.
Trade (DPIIT) to seek clarification on the petitioner’s Owing to the broad and blanket prohibitions imposed by
eligibility to receive FDI. The petitioner did not the Tamil Nadu Act, the All India Gaming Federation62,
receive clarification for eight years and hence filed a Gameskraft Technologies Private Limited63, Play Games
writ petition before the Bombay High Court seeking 24x7 Private Limited64, Head Digital Works Private
directions to the RBI to consider and decide the Limited65, and Junglee Games India Private Limited66
petitioner’s application for the compounding of such filed various writ petitions before the Madras High Court,
non-compliance. The DPIIT was also made a respondent stating that provisions of the Act are unconstitutional.
in the petition. Owing to the similar prayers in such writ petitions,
In the affidavit filed by DPIIT, it raised an issue in the Court clubbed them and heard the arguments
relation to the Impugned Games on the ground that collectively. On 9 November 2023, the High Court of
they are games of chance and therefore amount to Madras struck down the prohibition on rummy and poker
gambling, which is a prohibited sector for FDI. The as unconstitutional. The High Court also held that the
Bombay High Court analyzed past Supreme Court prohibitions under the Tamil Nadu Act were to be read to
judgments to decide whether the Impugned Games apply to only games of chance, and not games of skill.
amounted to gambling; and held that for a game to The state government had filed an appeal against the
amount to gambling, it must be (i) predominantly of High Court’s order before the Supreme Court, which is
chance, and (ii) played for a reward. Accordingly, the still pending.
Bombay High Court directed the RBI to expeditiously
hear and decide on the petitioner’s application for
compounding of FDI-related compliances.
61
Play Games 24x7 Pvt. Ltd. v Reserve Bank of India & Anr., WP No. 3047/2022
62
W.P.No.13203 of 2023.
63
W.P.No.13593 of 2023.
64
W.P.No.13720 of 2023.
65
W.P.No.13722 of 2023.
66
W.P.No.14704 of 2023.
Media & entertainment
67
See: https://indianexpress.com/article/business/centre-blocks-more-than-200-offshore-gambling-predatory-loan-platforms-8425995/ (last accessed February 15,
2024).
68
See: https://www.cnbctv18.com/technology/lazypay-digital-lending-apps-blocked-china-ties-security-concerns-meity-meeting-15869481.htm (last accessed February
15, 2024).
69
See: https://www.livemint.com/news/india/meity-revokes-ban-against-some-digital-lending-platforms-details-11676022459871.html (last accessed February 15, 2024).
70
See: https://economictimes.indiatimes.com/tech/technology/payment-gateway-access-may-be-blocked-for-vetoed-online-games/articleshow/99540634.cms?from=mdr
(last accessed February 15, 2024).
71
See: https://g2g.news/gaming/meity-issues-blocking-orders-against-22-illegal-betting-apps-websites-including-mahadev-book/ (last accessed February 15, 2024).
72
See: https://www.financialexpress.com/business/brandwagon-mib-issues-advisory-on-advertisement-of-online-betting-platforms-in-sporting-events-3222665/ (last
accessed February 19, 2024)
73
DPIIT Memorandum stating that internet broadcasting platforms are covered by Section 31D of the Copyright Act. See: https://dpiit.gov.in/sites/default/files/OM_Copy-
rightAct_05September2016.pdf.
74
Wynk Ltd. & Anr. vs Tips Industries Ltd., Commercial Appeal No. 424 of 2019.
75
Tips Industries Ltd. vs Wynk Music Ltd. & Anr., Notice of Motion (L) No. 197 of 2019 in Commercial Suit (L) No. 114 of 2018.
253
II. Bombay High Court grants dynamic III. Delhi High Court holds that the use of
injunction against Instagram accounts publicly available information to create
In May 2023, the Bombay High Court76 in the case
NFTs does not infringe on publicity rights
of Applause Entertainment Private Limited vs. Meta In April 2023, the Delhi High Court77 in the case
Platforms Inc. and others granted a dynamic injunction of Digital Collectibles Pte Ltd and Ors. vs. Galactus
against a set of Instagram accounts through which Funware Technology Pvt Ltd and Anr. held that the right
“substantial parts” of the plaintiff’s web series were to publicity is not absolute and cannot infringe on the
being published. The plaintiff in the present case fundamental right to freedom of speech and expression
was the owner of the copyrighted work, i.e., the web under Article 19(1)(a) of the Constitution of India. The
series “Scam 1992: The Harshad Mehta Story,” which Delhi High Court also noted certain exceptions apply to
was based on the book “The Scam.” The plaintiff the right to publicity, like lampooning, satire, parodies,
claimed that the clips from their work were used by art, scholarship, music, academics, news, etc.
the defendants in relation to their business and to
In the present case, the plaintiff, Digital Collectible Pte
generate revenue. The plaintiff also contended that the
Ltd. (“Rario”), had been offering “digital player card” in
defendants could be using rogue or fake identities to
the form of non-fungible tokens (“NFTs”) of Cricketers
operate the Instagram accounts in question.
that could be bought, sold, or traded by users on
The Bombay High Court observed that a strong prima petitioner’s online marketplace. These cards contained
facie case existed in favor of the plaintiff, and how the names, photographs, and other personality attributes
feature of the web series on any other platform apart of players obtained by exclusive license agreements
from the licensed arrangement with the respective executed with such players. The defendants, Galactus
OTT platform would amount to a violation of the Funware Technology Private Limited (Mobile Premier
copyright in the said web series. The Court also agreed League or “MPL”) offered similar digital cards, but with
to the plaintiff’s contention regarding Instagram users limited information such as players’ names/initials and
adopting different identities to perpetuate the infringing an artistic rendition of the player’s image. Unlike Rario,
activities and hence granted an ex-parte ad-interim there was no formal agreement between MPL and the
relief in the form of a dynamic injunction. players. Further, both parties used these cards in their
game formats.
The Delhi High Court held in favor of MPL that MPL’s
fantasy sports game format consists of Digital Player
Cards with only publicly available information of all
players, there is no confusion that the MPL fantasy
sports game format is endorsed by any particular
player. The Court held that, moreover, the use of name,
image, and on-field performance statistics of a player in
fantasy sports game formats online would be protected
speech under Article 19(1)(a).
76
Applause Entertainment Private Limited vs Meta Platforms Inc. and others,
Commercial IP Suit (Lodging) No. 10238 of 2023.
77
Digital Collectibles Pte Ltd and Ors. vs Galactus Funware Technology Pvt Ltd
and Anr. CS (Comm) 108/2023
Media & entertainment
The Guidelines define dark patterns as “practices As stated above, the definition of “dark pattern”
or deceptive design patterns using user interface or clarifies that any act is a dark pattern only if it amounts
user experience interactions on any platform that is to a misleading advertisement, unfair trade practice or
designed to mislead or trick users to do something they violation of consumer rights87. Therefore, penalties will
originally did not intend or want to do, by subverting or be applicable only if a dark pattern is found to qualify
impairing the consumer autonomy, decision making or as misleading advertisement, unfair trade practice or
choice, which amounting to misleading advertisement violation of consumer rights.
or unfair trade practice or violation of consumer The Guidelines will be applicable to all online platforms
rights80.” Therefore, a practice will be considered a and websites, including OTT platforms. Some of the
dark pattern only if a practice amounts to a misleading specified dark patterns such as “subscription trap” are
advertisement81 or unfair trade practice82 or violation of likely to affect subscription models of such platforms.
consumer rights83 as defined under the Act AND fulfills
the other requirements of the above definition. Such II. Guidelines for health influencers
dark patterns are prohibited84. The Guidelines provide
a list of specified dark patterns for guidance of the The Ministry of Consumer Affairs has issued
industry and consumers in the Annexure 85,86. Additional Guidelines for celebrities, influencers
and virtual influencers in the field of health and
For example, “False Urgency” refers to falsely stating wellness88 (“Influencer Guidelines”). The press release
or implying the sense of urgency or scarcity so as to accompanying the Influencer Guidelines states that
mislead a user into making an immediate purchase they are an extension to the Guidelines for Prevention
or take an immediate action, which may lead to a of Misleading Advertisements and Endorsements for
purchase. This false sense of urgency can be created by Misleading Advertisements, 2022. The Influencer
showing the false popularity of a product or a service Guidelines aim to prevent misleading advertisements,
or stating that quantities are limited in stock. Another unsubstantiated claims and ensure transparency in
dark pattern specified in the Annexure is “Subscription health and wellness endorsements by celebrities,
influencers and virtual influencers.
78
Available at: https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/Draft%20Guidelines%20for%20Prevention%20and%20Regulation%20of%20Dark%20
Patterns%202023.pdf (last accessed on February 20, 2024).
79
Guideline 3 of the Guidelines.
80
Guideline 2(e) of the Guidelines.
81
Section 2(28) of the Act defines “misleading advertisement” in relation to any product or service as “an advertisement, which— (i) falsely describes such product or
service; or (ii) gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or (iii) conveys
an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or (iv) deliberately
conceals important information.”
82
Section 2(47) of the Act defines “unfair trade practice” as “a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision
of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices” and lists out an exhaustive list of practices which are
considered as unfair trade practices (available at: https://www.indiacode.nic.in/bitstream/123456789/15256/1/a2019-35.pdf) (last accessed on February 20, 2024).
83
Section 2(9) of the Act refers to “consumer rights” which includes “(i) the right to be protected against the marketing of goods, products or services which are hazardous
to life and property; (ii) the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to
protect the consumer against unfair trade practices; (iii) the right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices;
(iv) the right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate fora; (v) the right to seek redressal against unfair trade
practice or restrictive trade practices or unscrupulous exploitation of consumers; and (vi) the right to consumer awareness.”
84
Guideline 4 of the Guidelines.
85
Guideline 5 of the Guidelines.
86
Guideline 2(i) of the Guidelines.
87
Guideline 2(e) of the Guidelines.
88
Available at: https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/Additional%20Influencer%20Guidelines%20for%20Health%20and%20Wellness%20
Celebrities%2C%20Influencers%20and%20Virtual%20Influencers.pdf (last accessed on February 20, 2024).
255
For celebrities/ influencers/ virtual influencers (such as III. ASCI Guidelines for Influencers
robot or computer graphics generated avatars/ profiles)
The Advertising Standards Council of India (“ASCI”) has
posing themselves as health experts who are sharing
also introduced Guidelines for Influencer Advertising in
any information, promoting products or services, or
Digital Media89 (“Guidelines”) in August 2023.
making health related claims must provide a disclaimer
at the time of such endorsements. Following are some The Guidelines are applicable to all the influencers and
of the key features and obligations of the Influencer virtual influencers who have a material connection
Guidelines: with an advertiser. An influencer is defined as someone
who has access to an audience and the power to affect
• The requirement of disclosure is necessary for
their audiences’ purchasing decisions or opinions
sharing information or making claims on topics
about a product, service, brand or experience, because
such as health advantages, relating to food
of the influencer’s authority, knowledge, position,
items and nutraceuticals, disease prevention,
or relationship with their audience. The Guidelines
treatment or cure, medical conditions, recovery
also define virtual influencers as fictional computer
methodologies or immunity boosting, etc.
generated ‘people’ or avatars who have the realistic
• The disclaimer should state that their content characteristics, features and personalities of humans,
should not be seen as a substitute for professional and behave in a similar manner as influencers.
medical advice, diagnosis or treatment. Further,
“Material connection” has been defined as any
celebrities/ influencers/ virtual influencers must
connection between an advertiser and an influencer
encourage their audience to seek advice from
that may affect the weight or credibility of the
healthcare professionals before making any
representation made by the influencer. It can include
significant alterations to their diet, exercise or
benefits or incentives such as monetary or other
medication routines.
forms of compensation, free products with/ without
• The Influencer Guidelines provides certain any condition to include those received unsolicited,
approaches on how to clearly communicate these discounts, gifts, contest or sweepstake entries, trips/
disclosures to the audience without altering the hotel stays, etc. If such a material connection can be
overall creative presentation of their content. established, then disclosures are required.
It encourages influencers to conduct a review of the The Guidelines introduce disclosure requirements and
products which they are promoting and must ensure due diligence obligations for influencers in certain
that they are in a position to substantiate the claims scenarios:
made before endorsing a product or service. It also
• Social media influencers having a material
provides a general exemption for sharing general
connection (not limited to monetary compensation,
wellness and health advice such as stay hydrated, get
discounted/ free samples are also included)
enough sleep, avoid excessive screen time, exercise
between the advertiser and the influencer must
regularly, etc., which does not promote specific
display a disclosure label on their accounts which
products or services, or does not target specific health
clearly identifies their content as advertisements,
conditions are exempt from these regulations.
irrespective of whether evaluation is unbiased or
fully originated by the influencer.
• Disclosures should be placed in a manner which are
hard to miss. The Guidelines further suggest that
influencer’s own disclosures should be considered
in addition to the platform’s disclosure tools.
89
Available at: https://www.ascionline.in/wp-content/uploads/2023/08/GUIDELINES-FOR-INFLUENCER-ADVERTISING-IN-DIGITAL-MEDIA.pdf (last accessed on February
20, 2024).
Media & entertainment
Gowree Gokhale
Leader and Head to Technology,
Telecom, M&E practice
AI can provide an INR450 billion boost to the Indian M&E sector by 2027
This section is based on a survey of M&E CXOs and independent research by EY
The M&E sector has always been an enthusiastic adopter of technology. AI – and especially Gen AI - gives it the tools
the sector has always dreamed of, and can result in a 10% revenue growth and 15% cost efficiency.
65%
M&E CXOs say their companies have initiated AI
65%
M&E CXOs believe that Gen AI would
projects or plan to within the next 12 months help in revenue acceleration
45%
of M&E CXOs claim that CEOs are
85%
were looking at external technology
driving the Gen AI agenda providers to enable implementation
85%
believe that Gen AI would help
drive innovation, with the
biggest impact across
► Storyboard creation ► Automated video metadata analysis ► Smart scheduling for platforms
and categorization
► Scene layout descriptions ► Content localization
► Content licensing rights
► Virtual characters/ set design
management
Video
► Writing assistance/ auto ► Topic led news feed aggregation, ► Content translation
templatization automated content curation
► Image generation from photo
► Automated article generation ► Dynamic headline generation, libraries
article summarization
Print/ text
► Level design and character creation ► Automated game asset analysis and ► Cloud-based gaming platforms
categorization
► Dynamic storylines, narrative arcs ► Personalized game discovery tools
and quests ► Automated digital assets creation
► Cross-platform game streaming
Gaming
► Targeted
choices retargeting and cross-
microtransactions ► Copyright infringement
platform advertising
detection
► Personalization of
► Real-time performance
subscription plans
analytics and reporting
► Smart playlists based ► Custom transactions for ► Copyright infringement ► Music ad campaigns and
on mood/ preferences/ personalized packages detection artist endorsements
genre
► Dynamic pay-per-view ► Automated music ► Ad insertion within
► Artist/ song concerts metadata tagging playlists
recommendation and
Music
► Smart algorithms for ► Pay-per-article model ► Fact-checking tools ► Print ad creation/ layouts
personalized article
► microtransactions for ► Plagiarism detection ► Real-time campaign
recommendation
exclusive content analytics
► Automated content
► Multilingual content
Print/ text
► Automated fantasy ► Dynamic pricing for live performance tracking ► Real-time sports
sports team sports events analytics and
► Real-time intelligent
management stats for campaign performance
► Personalized sponsorship event delivery assistance
users measurement
deals
Media & entertainment
► Personalized music/ lighting/ ► Virtual stage and services previews ► Live event streaming with
visuals for live shows dynamic camera angles/ custom
In-person entertainment
commentary
► Venue design
► Virtual attendance experiences
► Choreography ideation
► Virtual artists
► Audience interaction through AR/
VR
► Event planning/ logistics and
costing
► Concept art generation ► AI-powered VFX asset libraries and ► Market analysis and pricing
recommendation engine (assets,
► Automated storyboarding ► Predictive content delivery
tutorials, tools)
► Real-time animatic creation
VFX
analysis
► Editing/ collaboration ► Microtransactions for direct creator
► Automated licensing and rights support
► Digital incentives for creators
management solutions for creators
► Language translation tools
*refers to services like governance, finance, IT, talent management, resource optimization, etc.
265
► Scene curation and demo ► VFX subscription model ► Quality control and bug ► NA
for choice enablement recommendations and detection
delivery modules
► Real-time feedback and
VFX
‘’Content is the King’ is at the core of the M&E industry; Data - and the way we leverage data - will become a key
a revolution is in the offing that will herald a tsunami of driver of competitive advantage in the industry and will
high-quality content, courtesy Gen AI! help us create differentiated experiences for our users.
We have seen tech disruptions for many decades but Gen AI is the biggest innovation for mankind after the
the next three years will be pivotal. GenAI, VR/XR and internet. The two focussed underlines for media industry
interactive/gaming content will make the most impact in today, creativity and costs, would get benefitted by
media. application of its algorithms, enhancing workflow
efficiencies. Policies, practices and protocols to thwart
possible deep fakes and ill-effects is a responsibility
bestowed on technologists in media.
Data privacy
Media & entertainment
269
Notice across websites, applications Notice in English and any of 22 Indian Provision for consumers to raise
Privacy notice prior collection of personal data languages complaints
Consent to be obtained for Consent to be obtained for collection Consent to be obtained for newsletters,
Consent profiling, promotions, personalized of cookies for personalisation, sending SMS, emails promotions
advertisement, etc. remarketing/ retargeting
Verifiable parental consent to be obtained for processing Tracking or behavioral monitoring of children or targeted
Children’s data children’s data advertising directed at children is prohibited
Only voluntarily provided personal data Processing that is carried out for
Processing that falls under law or in the
will fall under legitimate use (for e.g., interviews, print digital news, political
Legitimate uses blogs, comments on articles, social interest of sovereignty and integrity of opinions may not fall under legitimate
India or security of the state
media posts) use and require consent
Data principal Provision to erase, correct or provide access to the data Provision for data principals to nominate someone else for
rights principals’ personal data erase, correct or provide access to personal data
Cross border Central government may notify countries to where personal data cannot be transferred leading to identification of
data transfer alternate service providers.
Media & entertainment
M&E consumers are concerned How likely are you to trust a company that clearly
about data privacy communicates its data protection practices?
1
https://www.infosysbpm.com/blogs/media-entertainment/key-ways-ai-is-changing-the-entertainment-industry.html
271
Content ► Analyzes user behavior, preferences, ► Demands clear user consent for ► With growing privacy concerns
recommendation and historical data to curate personalized suggestions among users, M&E companies
system
personalized content suggestions can expand their clientele by
► M&E companies to ensure
highlighting compliance with the
► Frequently used by OTT platforms, their AI models do not process
regulations
music apps, and reading apps for personal data if user opts out of
user suggestions personalization
Predictive ► Predictive analytics algorithms ► M&E companies to add all ► Businesses can employ
analytics anticipate user preferences and purposes for which personal data anonymized datasets or publicly
trends is collected and used (including for available data sets without
AI models) in their Privacy Notice consent to refine content
► Frequently used by M&E companies
strategy
to make data-driven decisions for ► For e.g., In 2023, X (formerly
upcoming releases or optimizing twitter) changed its privacy notice
content distribution strategies to add use of personal data to
train AI models, thereby taking
consent from users for AI data
processing2
AI-generated ► Utilizes personal data, including voice ► M&E companies integrating ► Engage with Processors who
synthetic voice recordings and speech patterns, to third-party AI models as Data are DPDPA ready or comply
create lifelike synthetic voices for Processors to ensure that their to Global Data protection
various applications Data Processors comply with regulations to build trust
DPDPA among customers and ensure
► For e.g., Spotify’s new AI voice
protection of their personal data
translation feature translates select ► M&E companies are obligated
podcasts into other languages, not to enter into a Data Processing
by speakers of that language, but in Agreement (DPA) to that effect
synthetic AI voices that match the
original speaker’s style
VFX ► Utilizes personal data such as actors’ ► M&E companies must ► Build privacy by design
facial expressions and movements deploy robust technical and capabilities in the AI tools
to enhance realism and immersion in organizational measures to shield to ensure personal data
the final product personal data that is fed into AI is protected across the
applications lifecycle while processing is
► For instance, in blockbuster movies
carried out and leverage the
like Avengers: Endgame, VFX
implementation of such controls
technology seamlessly integrates
as marketing strategy
actors’ movements and facial
expressions to bring characters to life
Gaming, AR, ► In gaming, AI powers conversationally ► M&E companies to establish ► Enable compliance and get a
and VR capable avatars and determines NPC robust mechanisms for first mover advantage in the
behavior and game progress based parental consent within gaming market to target customers and
on player decisions environments get them onboarded by building
trust
► For instance, Apple’s Vision Pro ► Companies to ensure their AI
analyzes personal data such as facial models do not track or monitor
expressions or gestures to enhance the personal data of children world
user experience
2
https://techcrunch.com/2023/09/01/xs-privacy-policy-confirms-it-will-use-public-data-to-train-ai-models/
Media & entertainment
What is the optimal media business portfolio today? 91% Of M&E execs
say linear video will
Advertising sales keep declining yet
will remain a key part
23.3% 22.7% 22.0% of an optimal media
business mix for the
foreseeable future
Streaming platforms
16.0% 10.7% 24.0%
93%
say that consumers appreciate the increased choice
To maximize consumer value in three years’ time, which of
the following offerings will be most important to invest in?
85%
67.3%
68%
Fresh programming (new content to the streaming site)
42.0%
say consumers want to access content through a Recommitting to traditional pay TV bundles
single platform 21.3%
59%
executives’ top three choices or similar
n=150
Content spend on streaming will Sports and reality content are most valued by consumers
continue, despite profitability issues What type of content/ intellectual property (IP)
is most valued by consumers today?
77%
Sports
72.7%
Unscripted/ reality
of M&E executives say they expect content outlays to
increase over the next three years 68.7%
Original scripted
54%
58.7%
News
45.3%
of M&E executives say that their inability to measure
ROI is an extremely significant business challenge Children’s programming
36.7%
68%
from AI and Gen AI do not rock
industry prospects
83%
expect that only one of today’s M&E conglomerates
will remain as a stand-alone company in three years’
time; the other 32% do not expect any of them to
remain independent
say their companies have initiated AI projects or plan
to within the next 12 months
97%
69%
of all respondents expect that Gen AI will accelerate
of M&E leaders say that mergers completed over
the last five years have driven lasting benefits for
the acquiring companies, mainly their competitive
the process of content creation, from research to positioning and streaming capability
ideation to scripting
65% 93%
of M&E executives say they have simplified their
expect that Gen AI will improve the customer experience business portfolio to focus on their core strategy, or
through intelligently automated assistants, voice plan to do so in the next 12 months
recognition and elevated customer query handling
53%
believe that Gen AI will improve content quality
51%
believe Gen AI will drive audience engagement
at scale
279
Media & entertainment
About this
report
281
Media & entertainment
Glossary
1P First party CIO Chief Information Officer
20XX Calendar year 20XX CMO Chief Marketing Officer
20XXE Estimate for calendar year 20XX CMoSPI Central Ministry of Statistics and
2D Two dimensional Programme Implementation
3D Three dimensional COPPA Children’s Online Privacy Protection Act
4G 4th generation mobile network COVID Coronavirus disease
4K 4,000 pixels CPM Cost per mille (thousand)
5G 5th generation mobile network CPRP Cost per rating point
8K 8,000 pixels CPT Cost per thousand
ABP Ananda Bazar Patrika CRM Customer relationship management
ACR Automatic content recognition Crore Ten million
Ad Advertising Crypto Cryptocurrency
AdEX Advertising expenditure CTV Connected TV or Smart TV
AFP Advertising funded production cume cumulative audience
AGR Adjusted gross revenue CWC Cricket World Cup
AI Artificial Intelligence CX Customer experience
AIGF All India Gaming Federation D2C or DTC Direct-to-customer
AIPA ATF IP Accelerator D2M Direct-to-mobile
AIR All India Radio DAS Digital Addressable System
AMA Average Minute Audience, as defined by DAU Daily active users
BARC DAVP Directorate of Advertising and Visual
ANA Association of National Advertisers Publicity
Anr Another DB Corp Dainik Bhaskar Corporation
APAC Asia-Pacific DD Doordarshan
App Application DG Diesel Generator
AR Augmented reality DNPA Digital News Publishers Association
ARPU Average revenue per user DOOH Digital out-of-home
ASCI Advertising Standards Council of India DOT Department of Telecommunications
ATF Asia TV Forum DPA Data Processing Agreement
ATL Above the line, or media spends DPCGC Digital Publisher Content Grievances
ATP Average ticket price Council
ATS Average time spent DPDPA Digital Personal Data Protection Act
Auto Automobile DPIIT Department for Promotion of Industry and
Avg Average Internal Trade
AVGC Animation, Visual effects, Gaming and DPOs Distribution platform operators
Comics DSP Demand side platform
AVOD Advertising video on demand DTH Direct to home satellite television
B2B Business-to-business EBITDA Earnings before interest tax depreciation
BARC Broadcast Audience Research Council and amortisation
BCCI Board of Control for Cricket in India E-commerce Electronic commerce
BFSI Banking, financial services and insurance ED Enforcement Directorate
BGMI Battlegrounds Mobile India EEMA Events & Entertainment Management
BI Broadcast India survey Association
BMS BookMyShow E-gaming Electronic gaming
Bn Billion E-Invoicing Electronic invoicing
BNS The Bhartiya Nayaya Sanhita, 2023 EMDEs Emerging Markets and Developing
BTL Below the line or event spends Economies
CAGR Compounded annual growth rate EPG Electronic program guide
CBDT Central Board of Direct Taxes ER Effective rate
CBFC Central Board of Film Certification ETR Effective tax rate
CCPA Central Consumer Protection Authority Euro Area Europe
CDP Customer data platform EV Electronic vehicle
CEO Chief Executive Officer EY Ernst & Young LLP, India
CFL Compact fluorescent lamp EYG Ernst & Young Global
CGI Computer generated images F&B Food & Beverage
CGOOH Computer generated out-of-home FAST Free ad-supported streaming TV
CGST Central Goods and Services Tax FC Football club
283
FCT Free commercial time, or ad inventory INR Indian Rupees (US$1 = INR83)
FDI Foreign direct investment IOAA Indian Outdoor Advertising Association
FFO Film Facilitation Office iOS iPhone operating system
FICCI Federation of Indian Chambers of IP Intellectual Property
Commerce & Industry IPC Indian Penal Code,1860
FIFA Fédération Internationale de Football IPL Indian Premier League
Association IPLC International Private Leased Circuit
Fintech Financial technology IPR, or IP Intellectual property rights
FIR First information report IPRS Indian Performing Rights Society
FM Frequency modulation IRDAI Insurance Regulatory and Development
FMCG Fast moving consumer goods Authority of India
FS Financial services IRS Indian Readership Survey
FTA Free to air ISD Input service distributor
FTII Film and Television Institute of India ISL Indian Super League
FY Fiscal year (April to March) ISP Internet service provider
G20 Group of 20 Countries IT Information technology
GB, gb Gigabyte K thousand
GBO Gross box office KPI Key performance indicator
GDP Gross domestic product KYC Know your customer
GDPR General Data Protection Regulation Lakh A hundred thousand
GEC General entertainment channel LAM Large action models
Gen AI Generative AI LCO Local Cable Operators
GenX Individuals born between early to mid LED Light emitting diode
1960s and late 1970s or early 1980s LLP Limited liability partnership
GenZ Individuals born between late 1990s and Ltd Limited
early 2010s M&A Mergers and acquisitions
GGR Gross gaming revenue M&E Media and entertainment
GIFT Gujarat International Finance Tec-City Martech Marketing technology
GLoBE Global Anti-Base Erosion MAU Monthly active users
GMPCS Global Mobile Personal Communication Mbps Megabits per second
Services MCN Multi-channel network
GO Grievance officer MEITY The Ministry of Electronics and
GOI Government of India Information Technology
GPT Generative Pre-trained Transformer MENA Middle East and North Africa
GR Gross revenue MF Male and female
GSM Grams per square meter MFA Made for advertising
GST Goods and Services Tax MIB Ministry of Information & Broadcasting
GSTR Goods and Services Tax Return MICE Meetings, incentives, conferences and
HC High Court exhibitions
HD High definition Millennials Individuals born between early 1980s and
HITS Headend in the sky mid to late 1990s
HSM Hindi speaking markets Min or Mins Minutes
HSN Harmonized system of nomenclature MIP TV Marché International des Programmes de
IAP In-app purchase Télévision
ICC International Cricket Council MIPCOM Marché International des Programmes de
ICEA India Cellular & Electronics Association Communication
ID Identifiers ML Machine learning
IFPI International Federation of the MMX MultiMedia eXtensions
Phonographic Industry Mn Million
IGST Integrated goods and service tax MNE Multinational enterprise
IMDb The Internet Movie Database MoSPI The Ministry of Statistics and Programme
IMF International Monetary Fund Implementation
IMI Additional
Indian Guidelines
Music Industry for celebrities, MPEG2/ MPEG4 Encoding technologies
Influencer influencers and virtual influencers in the MPL Mobile Premier League
guidelines field of health and wellness issued by MSO Multi-system operator
Ministry of consumer affairs NA Not applicable/ Not available
NAS National Accounts Statistic
Media & entertainment
Acknowledgements
Sandeep Gupta
Saurav Mehra
Shraddha Rai
Shrikant Gosavi
Siddhartha Banerjee
Sonika Pruthi
Soumya Jain
Tarrung Kapur
Vikas Mathur
Vikas Yadav
Vipul Ubale
Vismay Tolia
Yash Maheshwari
Media & entertainment
Building a
better
Kaushal H Shah
Transaction Advisory
working
kaushal.shah@in.ey.com
Priyanka Minawala
Ashish Pherwani
Direct Tax Advisory
Consulting priyanka.minawala@in.ey.com
ashish.pherwani@in.ey.com
Uday Pimprikar
Ajay Shah
Indirect Tax
Transaction Advisory uday.pimprikar@in.ey.com
ajay.shah@in.ey.com
Pratik Sampat
Indirect Tax
pratik.sampat@in.ey.com
289
Bhavesh Laddha
Raghav Anand
Content Production Audit
Digital Media bhavesh.laddha@in.ey.com
raghav.anand@in.ey.com
Methodology
Disclaimer Key assumptions used to size the
segments of this report:
This report has been developed by conducting primary and ► Sizing of various segments has been arrived at
secondary research, discussions with several companies and using various sources of data, primary research and
industry stakeholders, and cross referencing of available data proprietary EY research. We have tried to then validate
points. To the extent possible, the data has been verified the sizing through industry discussions
and validated. However, there can be no guarantee that
such information is correct as of the date it is received or ► All INR amounts are gross of taxes, except where
that it will continue to be correct in the future. EY does not stated. Changes in GST rates have been factored into
take any responsibility for the veracity of the underlying the relevant segments
data. Use of this report is at the discretion of the reader, and ► Sales between any two segments of the M&E sector
neither FICCI nor EY take any responsibility for the same in are included as revenues for the segment providing
any manner. Please obtain professional guidance prior to the service. Content production has not been
using the information provided in this report for any decision independently sized as it is assumed to be a part of the
making. There is no tax, operating, regulatory or other segment it serves
business advice or opinion provided in this report. By reading
► Digital subscription and TV distribution revenues are
this report, the reader shall be deemed to have accepted the
considered at end customer prices. Content purchased
terms and conditions of use mentioned in this paragraph.
by telcos and ISPs has been valued under subscription
Despite our best efforts, errors do creep into this report,
incomes of media companies and not at end customer
which we correct when brought to our notice. Please do use
prices of bundled data packs
the latest updated version from our website.
► Digital ad and subscription revenues are not released by
most companies and are hence sized based on industry
discussions and correlated to media articles and
analyst reports. They should be used from a trending
perspective only. Ad revenues are grossed up at 18%
291
► International ad and subscription revenues of TV ► No hardware sales are included where bundled with
broadcasting companies have not been included in content. Value of sporting goods is not included in the
sizing the television segment sports segment
► Gaming captures only online games of skill and no other ► Where alternate sources of sizing exist, we have
forms of gaming like betting and gambling. Where GST considered the most conservative, unless there is
burden has been absorbed, the same has been netted adequate justification not to
off from gross revenues, where data was available
► Forward estimates assume that there will be no further
► Filmed entertainment segment does not include any pandemic-related lockdowns, geo-political issues or
revenues from food and beverage operations, parking major restrictions
revenues, retail revenues or any ticketing charges
► There are several statements in this report which refer
billed by online booking portals. Film gross box office
to certain media companies. Where sources for these
is considered at end customer price, for both domestic
statements have not been specifically mentioned,
and international theatricals, the latter being impacted
these statements have been sourced from news articles
by exchange rate fluctuations
available in the public domain
► OOH does not consider the large unorganized billboard,
► Prior year numbers have been updated where estimates
wall-painting, ambient media and retail point of sale
were used, to reflect actuals
markets
► Forward estimates have been provided on best effort
► The live events segment does not consider value
basis and are subject to change to reflect the ground
of media rights (unless the IP is owned by the
realities and unforeseen events
event company), the large unorganized sector,
cash transactions if any, and pure MICE and travel ► Content production estimates are based on publicly
companies. Events carried out by other segments are available information and other information available
included in the revenues of those segments with EY’s production audit team. The section uses
extrapolations and assumptions
► Animation, VFX and post-production revenues include
those earned from domestic and export services by ► Analysis of deals and content production is based on
companies in India and are correlated to averages secondary research and may not be complete
across the content value chain
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