Print segment expected to reach Rs 250 billion by 2024: FICCI EY report

The Indian M&E sector recovered by 16.4% to Rs 1.61 trillion ($21.5 billion) in 2021 and is pegged to grow 17% in 2022 to reach Rs 1.89 trillion ($25.2 billion), FICCI EY revealed in their latest edition of the annual report on India’s M&E industry. According to the report, while Digital media grew the most at Rs 68 billion, the share of traditional media (Television, Print, Filmed Entertainment, OOH, Music, Radio) stood at 68% of the M&E sector revenues in 2021, down from 75% in 2019.

Print fights back

The report reveals that Print advertising revenues grew 24% in 2021, though ad rates remained subdued. Subscription revenues saw a growth of 12% on the back of recovery in direct to home and newsstand sales as well as rising cover prices. Corporate sales, metro circulation and English dailies remained under stress, though the situation seems to be improving.

TV, Digital and Print together accounted for 95% of the ad spends. Share of advertising to total income of print segment stood at 66%, up from 64% in 2020, but still below its 70% share in 2019.

Overall, subscription grew Rs 15 billion with film, print and digital showing a combined growth of Rs 42 billion, while television saw a drop of Rs 27 billion.

The print segment grew 20% in 2021 to reach 77% of pre-pandemic levels. Overall, advertising revenues were still 27% below pre-COVID-19 levels. Advertising in English publications recovered to 63% of pre-COVID-19 levels, while advertising in Hindi and regional language publications recovered to around 78%. FMCG, education, auto and real estate continued to be the largest spenders on print. Ad volumes recovered 32%.

Circulation revenues recovered 12% in 2021, while Corporate/ institutional circulation remains impacted by 60% across languages. News stand and home delivery circulation seems to have recovered over 85% for most regional and Hindi print companies. Magazine publishers are planning a larger and more assured distribution network using technology and India Post.

Future outlook

The FICCI EY M&E report forecasts Print segment to reach Rs 250 billion by 2024. Advertising is pegged to grow at a 4% CAGR, driven by resumption of corporate sales, ability to reach SEC A audiences and events and activations business.

However, subscription growth will be more muted at 1-2% CAGR, driven by cover price increases, which will offset loss of reader base in metro markets.

The FICCI EY report estimates that newspaper circulation will grow to reach 90% of the 2019 levels by 2024. Even though, magazine revenues recovered by 34% in 2021, the report doesn’t expect further significant growth in this segment.