Experts decode the dynamics of the media and entertainment industry

The media and entertainment sector has emerged as a focal point for mergers and acquisitions (M&A) in recent times, undergoing a significant digital transformation.

Speaking to CNBC-TV18, Nitin Chandalia, MD & Partner of BCG highlighted the sector's potential for growth and the influx of new players. Market consolidation, he noted, is a natural progression in this dynamic landscape.

He said, "Media overall as a space, media and entertainment is a space where we believe is going to be an exciting space with a lot of growth opportunities, opportunities for new players to come in and so on and market consolidation is a part of it.”

Chandalia noted that while consolidation brings together various players, India's market remains fragmented.

“There are different regions, there are different kinds of genres, you have to look at Hindi, English GEC, Hindi GEC, regional, sports, movies, all of these separately. As advertisers look at allocating the ad dollars, there is a target for these different segments, and therein lies the opportunity for a spectrum of players for somebody like Sun it continues to be a relevant and significant opportunity going ahead.”

SL Narayanan, Group CFO of Sun Group, shared insights into their strategic approach to content acquisition. He emphasised the importance of viewing content as individual profit and loss (P&L) entities, where financial viability is paramount.

Narayanan explained that while certain content may hold value at a particular price point, excessive spending can be detrimental. Sun Group has been cautious in its content acquisition strategies, avoiding significant investments in web exclusives. Despite this approach, the company has maintained its market position and strengthened its presence.