1. Media & Entertainment likely to grow at a fast pace, reveals study

Media & Entertainment likely to grow at a fast pace, reveals study

The year 2017 is likely to witness a marginally slower growth rate of 13.1% for the M&E industry as the economy recovers from the lingering effects of demonetisation.

By: | Mumbai | Published: March 22, 2017 3:33 PM
The Indian media and entertainment industry is projected to grow at 14% over the period of 2016-21, according to the FICCI-KPMG Media and Entertainment industry report 2017, to reach Rs 2,419.4 billion by 2021.

The Indian media and entertainment industry is projected to grow at 14% over the period of 2016-21, according to the FICCI-KPMG Media and Entertainment industry report 2017, to reach Rs 2,419.4 billion by 2021. Released recently, the report, Media for the masses: The promise unfolds, highlighted that advertising revenue is expected to increase at a CARG of 15% during the same period. In 2016, the M&E sector grew at 9.1%, while overall advertising grew at 11.2% over 2015. Demonetisation is expected to continue to show its effect in 2017, as advertising revenues are expected to grow slower rate of 13.1%. Television is expected to grow at a CAGR of 14.7% over the next five years as both advertisement and subscription revenues are projected to exhibit strong growth at 14.4% and 14.8%, respectively.

Of the traditional media, radio is expected to grow the fastest at a CAGR of 16.1% with operationalisation of new stations in both existing and new cities. Not too far behind is OOH. The medium is projected to grow at a CAGR of 11.8% primarily due to the development of regional airports, privatisation of railway stations, growth in smart cities and growing focus on digital OOH. The report highlights that on the back of continued readership growth in vernacular markets and advertisers’ confidence in print, it will continue to growth at 7.3%. However, rising digital content consumption is perceived to be a long-term risk to the industry.

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The films segment is expected to bounce back and is likely to grow at a CAGR of 7.7% as the revenue streams broaden, driven by the growing depth of regional content, expansion in overseas markets and higher contribution of digital revenue streams. However, slow growth in screen count, along with inconsistency in content quality would act as the primary limiting factors. Meanwhile, the fastest-growing sector continued to be digital advertising, at 31% CAGR growth, to reach Rs 294.5 billion by 2021, contributing 27.3% to the total advertising revenues by that point.

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