Print Media Set to Experience 13-15% Revenue Growth in FY24, Fueled by Increased Ad Expenditure: CRISIL Report

Print Media Revenue to Witness Strong Growth in FY24

Increased Government and Corporate Advertising Spending to Drive Growth

The print media industry is poised for significant growth in the fiscal year 2024, with revenue expected to increase by 13-15%, according to a recent report by CRISIL. This surge can be attributed to the substantial rise in government and corporate advertising spending.

CRISIL predicts that the revenue of print media will reach US$ 3.63 billion (Rs. 30,000 crore) in FY24, representing a significant leap for the sector. Furthermore, this surge in revenue is expected to have a positive impact on the industry's profitability, projected to grow by 10-14.5%.

Revenue Composition and Growth Trends

Subscriptions and Advertisements Fueling Print Media Revenue

The revenue structure of the print media industry is divided into two primary sources: subscriptions and advertisements. Approximately 70% of the industry's revenue comes from subscriptions, while the remaining 30% is generated through advertisements.

In recent years, the print media sector has witnessed impressive revenue growth rates. In FY22, the industry's revenue surged by 25%, followed by a 15% increase in FY23. This upward trajectory is expected to continue, with the projected 13-15% growth in FY24.

Key Drivers of Print Media Revenue Growth 

Diverse Sectors Contributing to Advertising Revenue Surge

CRISIL's Director of Ratings, Mr. Naveen Vaidyanathan, highlights several sectors that play a pivotal role in driving print media's advertising revenue growth. These sectors include retail, clothing and fashion jewelry, new car introductions, rising preference for higher education, online shopping, and growing real estate sales.

Furthermore, Mr. Vaidyanathan emphasizes that government advertising, which accounts for a significant portion of the sector's revenue, will witness increased spending, particularly in the aftermath of impending elections.

This boost in government ad expenditure is expected to propel the overall growth, with ad income anticipated to rise by 15-17% and approach pre-pandemic levels in the current fiscal year.

Sustained Preference for Print Media

Subscription Revenue Growth and Moderate Price Increase

Despite the digital transformation in the media landscape, print media continues to maintain its popularity among customers in India. CRISIL reports an 8-10% increase in revenue from subscriptions for physical newspapers over the past two years.

In line with this trend, CRISIL projects a further 5-7% growth in subscription revenue for the print media industry in FY24. This growth can be attributed to a combination of sustained customer preference for print media and moderate price increments.

here are some relevant and latest facts for the above news:

• The Indian print media industry is the fourth largest in the world, after the United States, China, and Japan.

• The industry employs over 1 million people in India.

• Print media advertising revenue in India was estimated to be US$ 3.16 billion (Rs. 25,000 crore) in FY23.

• The government is expected to spend around US$ 1 billion (Rs. 7,500 crore) on advertising in FY24.

• Corporate advertising spending in India is expected to grow by 10-12% in FY24.

• The revenue from subscriptions for physical newspapers in India was estimated to be US$ 1.5 billion (Rs. 11,250 crore) in FY23.

• The number of print media readers in India is expected to reach 500 million by 2025.

Conclusion:

The print media industry is set to experience a substantial revenue boost of 13-15% in FY24, driven by increased government and corporate advertising spending.

Sectors such as retail, fashion, education, online shopping, and real estate are expected to play a significant role in driving ad revenue growth.

Additionally, the sustained preference for print media among customers in India is projected to contribute to subscription revenue growth.