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Others India's M&E industry to clock over Rs 227,000 crore by 2018: CII-PwC study

India's M&E industry to clock over Rs 227,000 crore by 2018: CII-PwC study

Author | exchange4media News Service | Wednesday, Sep 17,2014 12:51 PM

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India's M&E industry to clock over Rs 227,000 crore by 2018: CII-PwC study

India’s entertainment and media sector is expected to grow steadily over the next five years as per CII-PwC’s latest report, titled ‘India Entertainment & Media Outlook 2014’. The industry is expected to exceed Rs 227,000 crore by 2018, growing at compound annual growth rate (CAGR) of 15 per cent between 2013 and 2018.

In 2013, the overall entertainment and media industry was estimated to be Rs 112,044 crore and grew by 19 per cent over the previous year. The largest segment, India’s television industry, continued its strong growth momentum led by subscription revenues, representing a year-on-year growth of about 15 per cent. Internet access and internet advertising have been the fastest growing segments with annual growth rates of 47 per cent and 26 per cent, respectively.

“The key theme of our report this year is ‘monetisation strategies in media sector’. Clearly, the future lies in digital media as the internet segment is leading the growth in India,” said Chandrajit Banerjee, Director General, Confederation of Indian Industry.

The revenue from advertising is expected to grow at a CAGR of 13 per cent and will exceed Rs 60,000 crore in 2018 from Rs 35,000 crore in 2013. Internet access has overtaken the print segment as the second-largest segment contributing to the overall pie of entertainment and media sector revenues.

Smita Jha, Leader, Entertainment and Media practice, PwC India said, “Digital success does not just necessarily mean better, improved technology. It means applying a digital mindset to build the right behavior among industry stakeholders. This includes getting ever closer to the customer, across the entire organisation, and in everything it does.”

Television and print are expected to remain the largest contributors to the advertising pie in 2018 as well. Internet advertising will emerge as the third-largest segment, with a share of about 16 per cent in the total E&M advertising pie. The film segment estimated at Rs 12,600 crore in 2013 is projected to grow steadily at a CAGR of 12 per cent on the back of higher domestic and overseas box-office collections as well as cable and satellite rights.

With the rapidly increasing adoption of smartphones and tablets, the gaming sector is fast emerging as a promising source of revenue for the industry. Efforts by industry players as well as support from the government are expected to provide a major boost to the gaming sector, which is still in its infancy. Out-of-home advertising is gradually expected to slide to the last position in terms of revenue contribution to the sector, with its share declining to 1 per cent in 2018, while music remains constant at 1 per cent revenue share between 2013 and 2018.

 

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