NEW DELHI: The media & leisure sector, which noticed a contraction of round 24 per cent at Rs 1.38 lakh crore within the pandemic-struck 2020, is predicted to log progress this yr and double its income to Rs 2.68 lakh crore by 2025, a report mentioned.
In 2020, the sector had a shortfall of Rs 43,900 crore to Rs 1.38 lakh crore ($18.9 billion) and the income virtually plunged again to 2017 stage, mentioned a joint report by trade physique Ficci and international consultancy agency EY.
“The final quarter of 2020 confirmed a marked enchancment in revenues for many segments and we count on the M&E (media and leisure) sector to recuperate 25 per cent in 2021 to succeed in Rs 1.73 trillion ($23.7 billion) after which to develop at a CAGR of 13.7 per cent to succeed in Rs 2.23 trillion ($30.6 billion) by 2023,” it mentioned.
In 2019, the sector’s income was Rs 1.82 lakh crore.
“Whereas we count on the M&E sector to rebound in 2021 and double to round Rs 2.68 trillion by 2025, the restoration of assorted segments will differ,” it mentioned.
Whereas analysing the shortfall, the report mentioned digital and on-line gaming had been the one segments that grew in 2020 including an mixture of Rs 2,600 crore and consequently, their contribution to the M&E sector elevated to 23 per cent in 2020 from 16 per cent of 2019.
“Different segments fell by an mixture of Rs 46,500 crore,” it mentioned.
In 2020, tv, conventionally retained its slot as the biggest phase, whereas digital media overtook print, and on-line gaming overtook a disrupted filmed leisure phase.
In keeping with the report, in 2020, 2.8 crore Indians paid for five.3 crore OTT subscriptions, resulting in a 49 per cent progress in digital subscription revenues.
Whereas in 2019, the quantity was 1.05 crore solely, which is even lower than half.
“Progress was led largely by Disney+ Hotstar which put the IPL behind a paywall throughout the yr, elevated content material investments by Netflix and Amazon Prime Video and launch of a number of regional language merchandise,” it mentioned.
As well as, 28.4 crore folks consumed content material that got here bundled with their information plans.
Furthermore, the net gaming phase continued because the quickest rising phase of the M&E sector for the fourth yr in a row and reported a income of Rs 7,600 crore in 2020 as towards Rs 6,500 crore a yr in the past.
“The phase grew 18 per cent helped by work-from-home, school-from-home and elevated trial of on-line multi-player video games throughout the lockdown. On-line players grew 20 per cent to succeed in 360 million in 2020,” it mentioned.
Transaction-based recreation revenues grew 21 per cent, regardless of opposed regulation in sure states, whereas informal gaming revenues rose 7 per cent, it added.
In keeping with the report, the biggest absolute contributor to the autumn of the sector was the filmed leisure phase which declined to Rs 7,200 crore in 2020 from Rs 11,900 crore for 2019.
“Whereas theatrical revenues plummeted to lower than 1 / 4 of their 2019 ranges, a portion of this loss was made up by increased digital rights revenues which just about doubled throughout 2020 to Rs 3,500 crore,” it mentioned.
Nevertheless, the stoppage in manufacturing for over six months had its impression, which is able to now solely recuperate as soon as a wholesome slate of movies is made prepared for launch and the concern of moving into crowded locations subsides.
The report estimated TV, movie and music would take one to 2 years, assuming that there are not any additional setbacks, whereas conventional print, radio, OOH would take past three years.
It additional mentioned the M&E sector has gone medium agnostic, given the truth that now video, audio, textual content and experiences can be found throughout virtually all segments.
The sector is redefining itself throughout these 4 verticals – video (TV, video OTT), experiential (On-line gaming, cinemas, occasions, OOH), textual (print, on-line information) and audio (radio, music, audio OTT), it mentioned.