Top Story

e4m_logo.png

Home >> Media - Others >> Article

India’s M&E revenue to hit $25 bn by 2015: E&Y report

08-December-2011
Font Size   16
Share
India’s M&E revenue to hit $25 bn by 2015: E&Y report

The Indian Media and Entertainment (M&E) industry registered revenues of $16.3 billion in 2010 and is expected to be in excess of $25 billion in the next four years, according to Ernst & Young’s report, titled ‘Spotlight on India’s Entertainment Economy’. The study shows that India’s growing digital media consumption and favourable demographics are key drivers for future growth of the Media and Entertainment industry.

Due to economic liberalisation, near double-digit annual growth, a fast-growing middle class and a huge volume of demand for leisure and entertainment, there has been a surge in investment by global media companies in India. The Indian Media and Entertainment industry now finds itself at a new turning point – digital media. A surge in mass broadband adoption is expected, led by the launch of 3G and 4G services. By 2015, 90 per cent of India’s projected 187 million broadband subscribers will access the net through wireless devices. This presents global M&E companies with opportunities to develop ‘anytime, anywhere’ content that caters to a new generation of Indian digital consumers.

“The M&E industry in India has been, and will continue to be, one of the biggest beneficiaries of India’s favourable demographics,” said Farokh Balsara, Ernst & Young’s Media and Entertainment Leader for Europe, Middle East, India and Africa. “Having one of the world’s youngest populations, high volumes of content consumption, a favourable regulatory framework and growing digital adoption, makes India an attractive investment destination for global media and entertainment companies,” he added.

Key findings
• India’s increasing per capita income, growing middle class and working population are generating huge domestic demand for leisure and entertainment. The country has more than 600 television channels, 100 million pay-television households, 70,000 newspapers and produces more than 1,000 films annually.

• India has diverse regional markets with distinct cultures, languages and content preferences. These markets provide global media and entertainment companies with a variety of opportunities to deliver localised content.

• India’s favourable regulations and reforms are creating investment opportunities for global media and entertainment companies.

• The newspaper industry, which is facing declining readership in many international markets, continues to thrive in India, driven by increasing literacy rates, consumer spending and the growth of regional markets and specialty newspapers. Newspapers account for 42 per cent of all advertising spend in India, the most in any medium.

• The mandatory digitisation of India’s television distribution infrastructure is driving growth of digital cable and DTH and creating a need for these companies to fund expansion.

• The third phase of radio license auctions, expected soon, will see radio networks expanding their reach to add around 700 radio stations across the country.

“The growth strategies in most companies in the US and Western Europe are linked to India and other emerging markets,” remarked John Nendick, Global Media and Entertainment Leader at Ernst & Young. “However, to succeed in India, global media and entertainment companies need to navigate unique challenges in the areas of content localisation, distribution and pricing, regulations and piracy,” he further said.

According to the report, the two greatest challenges faced by media and entertainment companies doing business in India were low average revenues, with the Indian average revenue per user among the lowest in the world; and piracy, which is rampant in India and accounts for in excess of $4 billion per year.

Ernst & Young’s Global Media & Entertainment Center brings together worldwide teams of professionals to help clients achieve their potential – teams with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues.

 

Tags

Siddharth Kumar Tewary, Founder, Chief Creative, One Life Studios and Swastik Productions, on owning the IP on his most ambitious project 'Porus,' the risk of recovering its cost and his distribution strategy

Webscale plans to build the brand around smooth operations for the e-commerce sector and then move on to demand generation

Shriya Ghate, Business Head, Tinkle, spills the beans on the company's vision for its special line of merchandise launched to celebrate its 37th anniversary, its pricing, marketing strategies, and more

Vivek Patni, Director of Wonder Cement, on the current marketing strategies and challenges that brand owners face

Viacom 18 promises to announce new release date soon

Luis Fonsi, Rita Ora, Jain of Makeba fame , Dimitri Vegas, Jason Derulo, Charly Black and Dasu, J Balvin, Parineeti Chopra, Tiger & Jackie Shroff speak exclusively to the radio channel

The Film-Maker, as the host of ‘Calling Karan’, Will Be Just A Phone Call Away From Listeners Seeking Advice On Love & Relationship