The Indian Media & Entertainment (M&E) industry, which now stands at Rs.65,200 crore, registered a growth of 11 per cent over 2009 and is likely to grow 13 per cent in 2011. Overall, the industry is expected to register a cumulative annual growth rate (CAGR) of 14 per cent to touch Rs.1.28 lakh crore by 2015, a report by the Federation of Chambers of Commerce & Industry (FICCI)- KPMG said.
Overall for the M&E industry, 2010 was a year of great dynamism with growth across all sectors other than film. The report highlights a strong recovery in advertising spends as a key driver for growth. Advertising spends grew by 17 per cent to Rs.26,600 crore and accounted for 41 per cent of the overall industry size.
While television and print continued to dominate, sectors such as gaming, digital advertising and animation VFX grew at a faster rate and show tremendous potential.
FICCI Secretary General Amit Mitra said “the key industry highlights are growing potential of the regional markets, increasing media penetration and per capita consumption and increasing importance of New Media driven by changing media consumption patterns.''
TV households to surge
The report said TV households are likely to surge to 15.60 crore homes by 2015, advertising and subscription revenues to touch Rs.21,400 crore and Rs.41,600 crore, respectively, and the overall print industry is likely to see a CAGR of 10 per cent to touch Rs.31,000 crore in five years with regional print likely to grow at a rate of 12 per cent.
The radio industry is expected to grow at 20 per cent and become more profitable. Films had a challenging 2010 but with better content, increase in multiplexes, and continued cost corrections, the industry can grow from Rs.8,300 crore to Rs.13,200 crore by 2015.
Digitisation continues to be a key growth driver and was more pronounced in 2010. Film studios saw greater adoption of digital prints over physical and it was the first time in India that digital music sales surpassed that of physical unit sales. Direct to Home (DTH) grew 75 per cent in the net subscriber base by adding 1.20 crore subscribers in 2010, giving a net subscriber base of 2.8 crore in 2010. The TV industry, which grew 15.5 per cent in 2010 and is expected to grow at CAGR of 16 per cent to touch Rs.63,000 crore by 2015, is likely to account for half of Indian M&E industry revenues.
Regional media consumption is expected to grow. In print, revenues from Hindi and vernacular segments are likely to catch up with English which today has significant share.