media and entertainment industry on the road of recovery

Media And Entertainment Industry On The Road Of Recovery

Just like every other sector the media and entertainment industry were hit hard due to the covid-19 pandemic with heavy rules and regulations from the government the entertainment industry has resumed its work although is yet to recover financially.

According to the FICCI-EY report. The media and entertainment industry are all set to grow in the country this year.

According to the report, the industry lost 24 percent to Rs 1.38 lakh crore last year due to the Covid-19 pandemic compared to 2019.

media and entertainment industry on the way of recovery

The last quarter of 2020 saw a recovery in earnings in most segments but not much in the media sector.

The media and entertainment industry is expected to grow by 25 percent to Rs 1.73 lakh crore by 2021.

 It will increase by an average of 13.7 percent per annum to Rs 2.23 lakh crore by 2023.

 The media and entertainment industry’s revenue is expected to touch Rs 2.68 lakh crore by 2025.

OTT’s Have an Upper Hand

 OTT Platforms have a upper hand in media and entertainment industry recovery

The television segment continues to be at the top of the industry.

 Last year, 2.8 crore customers subscribed to OTT platforms out of 5.3 crores OTT subscriptions.

This led to a 49 percent increase in digital subscription revenue.

 In 2019, 1.05 crore customers made OTT subscriptions.

 The DisneyPlus Hotstar contributes to the growth last year.  Has the IPL broadcasting rights belong to Star Group.

Netflix and Amazon Prime have invested heavily in content last year. They Brought products in regional languages.

28.4 crore customers last year streamed OTT services and enjoyed the content as it came bundled with data plans.

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Online Gaming

online gaming increased drastically in 2020

Digital and online gaming, which accounted for 16 percent of the media and entertainment industry in 2019, jumped to 23 percent in 2020.

The online gaming segment has been growing rapidly for the past four years.

In 2020, the sector had a revenue of Rs 7,600 crore. It was Rs 6,500 crore the previous year.

 Employees working from home, online gaming, and online classes grew by 18%.

Online gamers jumped 20 percent i.e., 36 crores last year alone.

 Revenue from transaction-based games increased 21 percent despite restrictions in several states.

General Games‌ revenue increased 7 percent. 

Revenue from theatres

Demand for movies and videos in 2019 was Rs 11,900 crore. Last year, it fell sharply to Rs 7,200 crore.

 Revenue from theatres in 2020 fell by a quarter compared to 2019 due to lockdown.

 However, the increase in revenue from digital rights has not slowed down. Digital rights revenue almost doubled to Rs 3,500 crore.

The suspension of film production for more than six months has had a severe impact on the industry.

TV, movie, and music industries can take a couple of years to recover.

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