Indian Media & Entertainment Industry to touch INR 1,457 billion by 2016: FICCI-KPMG report

In 2011, the Indian Media & Entertainment (M&E) Industry registered a growth of 12% over 2010, to reach INR 728 billon, says the FICCI-KPMG report. The growth trajectory is backed by strong consumption in Tier 2 and 3 cities, continued growth of regional media, and fast increasing new media business. Overall, the industry is expected to register a CAGR of 15% to touch INR 1,457 billion by 2016.

The report will be formally released at the inaugural session of FICCI FRAMES 2012 on March 14, 2012.

2011 has been a challenging year not just for the Indian M&E industry, or even the Indian economy, but for the larger world economy. While India is still expected to grow at a healthy pace, growth is projected to be lower than earlier expectations.

While television continues to be the dominant medium, sectors such as animation & VFX, digital advertising, and gaming are fast increasing their share in the overall pie. Radio is expected to display a healthy growth rate after the advent of Phase 3. Print, while witnessing a decline in growth rate, will continue to be the second largest medium in the Indian M&E industry. Also, the film industry had a reason to cheer, with multiple movies crossing the INR 100 crore mark in domestic theatrical collections, and INR 30 crore mark in C&S rights.

Advertising spends across all media accounted for INR 300 billion in 2011, contributing to 41% of the overall M&E industry's revenues. Advertising revenues witnessed a growth of 13% in 2011, as against 17% observed in 2010.

Source : Equity Bulls

Keywords