MEDIA TRENDS TO WATCH OUT FOR – 2022 – 2023
In the last two years, the media industry faced turmoil like no other, hugely impacted by the pandemic of the century COVID 19. Gradually, it crawled back on its feet, sooner than later but not to the glory of the pre-covid era. It is still struggling to gain ground. However, that will be possible only if sharp strategies are in place and execution is seamless, for which media houses need to study trends and bring professionals on board, who can make it happen.
The Indian M&E industry is on the road to recovery but still must overcome its pre-pandemic levels. While 2020 saw demand patterns shift as consumers actively sought alternatives, 2021 saw Indian consumers being influential in determining the production of content and experience, time and place of delivery of content, and ways of marketing it. The increased digital media consumption has given more choice and power, and Indian customers have enthusiastically embraced it.
- In 2021, when India’s nominal GDP grew 19%, advertising growth outperformed and grew 25%. The highest growth was in television advertising of INR62 billion, followed by digital advertising of INR55 billion and then INR29 billion from a resilient print.
- India is amongst the largest content producers in the world — with 150k hours of TV content, 2,500 hours of premium OTT content, and 2,000 hours of filmed content produced in 2021.
- Digital media has firmly established itself as the second-largest segment and it grew by INR68 billion in 2021.
This has resulted in M&E companies re-thinking their business models across their core areas – content, distribution, transaction, and consumer. Technology has led to the democratization of M&E in India — content is now created for the people, by the people, and of the people. The flow of consumer data provides rich and real-time insights on what the consumer likes and dislikes, when where, and how it is being consumed, and whether the price points are appropriate.
Present here the Media industry snapshot:
- The Indian M&E sector is expected to grow by 17% in 2022 to reach INR1.89 trillion and then grow at a CAGR of 11% to reach INR2.32 trillion by 2024.
- In 2021, when India’s nominal GDP grew 19%, advertising growth outperformed and grew 25%. The highest growth was in television advertising of INR62 billion, followed by digital advertising of INR55 billion and then INR29 billion from a resilient print.
- India is amongst the largest content producers in the world — with 150k hours of TV content, 2,500 hours of premium OTT content, and 2,000 hours of filmed content produced in 2021.
- Digital media has firmly established itself as the second-largest segment and it grew by INR68 billion in 2021.
Several media trends are worth watching for in the year 2022-2023:
- Need to build the content, capabilities, and scale needed to battle the digital-native behemoths
- Mergers & acquisitions will continue to be a popular growth and survival strategy
- Content distribution will get more complex
- Print media to return to the drawing rooms along with OTT
- Digital to rule the roost
- Knowledge & Information driver content to be the favorite
Media houses are experiencing a familiar landscape influenced by consumer behaviour dynamism, technological innovation, competitive intensity, and industry reshaping. Mix in the continuing effects of the pandemic on business conditions and the workforce, an inflationary economy, and a charged social and political landscape, and company leaders are steering through unpredictable terrain.
Key trends in 2022
- Digital advertising – Digital advertising increased by 29% to INR246 billion. In addition, SME and long-tail advertisers spent INR117 billion on advertising.
- Digital subscription – Digital subscriptions also grew 29% to reach INR56 billion. Due to the abundance of free audio options, just three million people purchased music subscriptions, producing INR1.6 billion in revenue.
- Print – Advertising revenues grew 24% in 2021, though ad rates remained subdued.
- Film – Despite capacity restrictions during the year, over 750 films were released in 2021, as compared to just 441 releases in 2020. Over 100 films were released directly on streaming platforms, too.
- Television – Television advertising grew 25% to the end of 2021 just 2% short of 2019 levels. Subscription revenue continued to fall for the second year in a row.
- OOH – OOH media grew 27% but remained at 50% of 2019 levels. We expect it to regain 2019 levels, not before 2024.
Here are five trends to watch in the year ahead as the industry works to reframe its future.
1. Content distribution gets complex
Content is the fuel that drives consumer interest and engagement across platforms – print, streaming, broadcast, and cable networks. How the content reaches consumers, however, often involves a complicated decision-making process. Investment in new original content shows no sign of slowing as we move ahead into 2022.
2. Customers seeking unique experiences
In 2022, consumers will continue to seek out unique experiences and ubiquitous access to entertainment content. Companies that solve the discoverability puzzle and aggregate content in a more intuitive and accessible way will rise to the top. Consumers expect effortless interactions throughout the end-to-end customer journey, from sign-up to usage and billing. Accordingly, we will see more companies participating in the streaming value chain.
3. Movie night will return to the theatre
The effects of the pandemic on the movie business have been severe. Cinema owners struggled to remain open as moviegoers stayed away because of virus concerns and the limited availability of fresh film products. While the emergence of the Omicron COVID-19 variant is adding uncertainty, signals are pointing to a constructive path forward for the box office in 2022.
4. NFTs have entered the media chat
Excitement is building around NFTs as a vehicle for media companies to expand engagement with their content and IP and may provide a future monetization model as the market matures.
Early adopters are purchasing NFTs linked to sports, art, collectibles, and more, acquiring one-of-a-kind digital assets that are easily tradable and whose ownership and authenticity are recorded via blockchain technology.
5. M&A remains a popular item on the menu
Over the last 12 months, the media and entertainment industry saw the biggest players execute a variety of transactions – landscape-shifting megamergers, bolt-on acquisitions of smaller studios including properties located in international markets that produce localized content, targeted deals for niche IP assets that can be leveraged to create fresh programming, and innovative joint ventures meant to accelerate global streaming growth on a capital-efficient basis.
Indian M&E sector is expected to grow by 17% in 2022 to reach INR1.89 trillion and then grow at a CAGR of 11% to reach INR2.32 trillion by 2024.
Courtesy: Excerpts from the M & E trends report of E & Y
