Media and Entertainment Sector Prepares for M&A Surge After 2023 Slowdown

M&A in entertainment sector: Following a lacklustre year in 2023, Media and Entertainment (M&E) industry is gearing up for a potential uptick in mergers and acquisitions (M&A) activity. Industry insiders anticipate a revival, spurred by promising shifts within various segments.

Despite last year's subdued performance, re are indications of a turnaround as strategists opt a more optimistic outlook. Notably, real money gaming sector is stabilising, suggesting a move away from cautious approaches.

Tritional media, particularly television, remains a dominant force in deal value, pointing towards sustained momentum moving forward.

“2024 will have challenging trends as far as -supported revenue is concerned, however, we expect a stey growth in music subscriptions in India. In 2023 only top atrical successes gave a push to music consumption, and 2024 could see similar results. 2024 will provide opportunities for M&A and strategic partnerships,” Vivek Raina of Believe Digital said. 

Segment Analysis

New media experienced a surge in deal volumes, comprising 86 per cent of transactions, though accounting for only 35 per cent of total deal value. On or hand, tritional media, especially television and film, commanded a significant 65 per cent share of deal value.

Television Segment Dynamics

fallout of Zee-Sony merger and impending Disney-Viacom18 deal is anticipated to stimulate heightened M&A activity within television sector. This is expected to le to consolidation, particularly in regional and digital sectors, in a bid to manage escalating sports rights costs and safeguard market share.

“ television segment is expected to see considerable M&A action, to protect and grow market share, in aftermath of Zee-Sony merger being called off and impending merger between Disney with Viacom18.  domino effect is likely to trigger a furr consolidation wave, especially in regional and digital segments, and to manage rising cost of sports rights,” EY and FICCI report stated. 

Digital Media and Online Gaming

se segments witnessed robust deal volumes, signalling a growing interest in investments within digital entertainment platforms. Despite television's dominance in total deal value (63 per cent), digital media and online gaming are significant drivers of M&A momentum.

Market Trends

Although 2023 experienced a slowdown in M&A activity, industry outlook remains positive for increased deal-making in near future. Tritional media continues to play a crucial role, driving significant deal values despite overall downturn. Furrmore, private equity (PE) and venture capital (VC) firms retain ir prominence in M&E transactions, signalling sustained interest and investment in sector.