An unexpected shift in consumer behavior in the wake of the global pandemic; a global economic slowdown and high prices dampening consumer spending; storylines that fail to resonate – media and multiplex managers face a litany of challenges in 2022.
The shift from traditional to internet-based media distribution has been a game-changer, with movie theaters and TV broadcasters restricted in 2022. Total OTT revenue in India more than doubled by the end of 2020, a trend that will continue in 2021 and 2022. -Personal entertainment — plus syndicated and brick-and-mortar hosting platforms — is under the greatest pressure ever to move beyond simply taking people out of their pandemic cocoons to replicate the “living room” outside the home.
By February and March, as pandemic restrictions began to ease, people started returning to theaters. what did they see Mainly Southern Films: KGF: Chapter 2 (Kannada; Domestic: Rs 100 crore), RRR (Telugu; Rs 9.44 crore) and Kantara (Kannada; Rs 3.61 crore) are the biggest box office hits this year The top-grossing film, though Bollywood films with A-list actors such as Akshay Kumar’s period drama Samrat Prithviraj, Aamir Khan’s Laal Singh Chaddha – which grossed Rs 1.86 crore – and Kangana Ranaut’s Dhaakad struggled at the box office.
That said, analysts predict multiplex revenues will surpass pre-pandemic levels in 2022-23. Ratings agency Crisil Ratings said in a report that it expects revenue to rise to a record high above Rs 6,000 crore, 13-15% above 2019-20 levels. A trio of higher average ticket prices, higher spending on food and beverages per capita and more screens, helped by the generosity of some highly-anticipated Hollywood titles before the end of the year, is expected to drive growth, according to a Crisil Ratings report on the industry’s story.
The average fare this year is Rs 240-245, 20% higher than pre-pandemic levels. Theater occupancy is hovering around 32% this year.
How about family entertainment? According to the EY FICCI M&E 2022 report, TV advertising revenue (the core of home entertainment) is expected to reach Rs 34,400 crore by 2022 and Rs 3,940 crore by 2024. TV channel subscription revenue is expected to reach Rs 41,500 crore this year. Subscription revenue will grow marginally at 2% CAGR to Rs 43,200 crore by 2024.
The pandemic period was the golden age of streaming in India, with people opting for stay-at-home entertainment over live events and going to theatres. Streaming services took center stage during the pandemic lockdown but are under pressure as viewers shift their attention to live entertainment and sporting events in 2022. Can the media and entertainment industry seize emerging opportunities?
Speaking at the Big Picture Summit in November, Information and Broadcasting Secretary Apurva Chandra said the ministry, together with India’s media and entertainment industry, has set a target to make the M&E industry a $100 billion industry by 2030.
In fact, India’s M&E sector is underpenetrated, contributing 0.9% of GDP compared to 3-4% in many advanced economies. In other words, about 100 million of India’s 300 million households do not have a TV, so the potential for growth is huge.
India will become the third largest TV advertising market in the next two years due to the rise of digital natives and the build-out of smart TVs and OTTs, according to the report “The Changing TV Landscape in India 2022” by GroupM Finecast and Kantar.
Connected TV (CTV) will dominate as Indian customers switch to smart TVs and devices. In the third quarter of 2022, smart TV shipments in India will increase by 38% year-on-year, of which 90% are smart TVs. According to Prasanth Kumar, CEO South Asia, GroupM: “With the advent of new technologies such as CTV, the future of TV in advertising is bright, creating more room for customization.”
what’s next One of the things the industry talks about a lot these days is the growing use of super apps and how these apps will drive growth in home entertainment in 2023 like so many other industries. When this happens, consumers will use one app to control all the other devices in their entertainment ecosystem. According to Gartner, more than half of the world’s population will be daily users of super apps.
Study after study shows that we are only months away from a major revolution in the way people consume media and entertainment. The only question to ask ourselves is, are we ready?
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