Summary:

According to a CRISIL research report on 20 corporations, media companies are predicted to grow by 8%, reaching US$ 7.14 billion (Rs. 60,000 crore) by FY27, driven by contributions from digital segments. This follows a 5% CAGR, with FY24 revenues of $5.60 billion (Rs. 47,000 crore). Revenue growth and cost savings are expected to increase operating margins by 500 basis points to 18% by FY27.

The shift to digital consumption has resulted in a 5% annual growth rate from FY19 to FY24, fueled by growing smartphone usage, expanding internet penetration, and low data prices in India (about US$ 0.2 per GB). Although media organizations were initially reluctant to adjust, the trend is shifting. According to Mr. Manish Gupta of CRISIL Ratings, the digital segment's share of media revenue is predicted to increase from 12% in FY24 to over 18% by FY27, driven by rising ad revenue in traditional sectors such as print and online retail, despite profitability challenges.

Source: IBEF 

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