'Indian M & E industry grew by 12 pct to touch Rs 920bn in 2013'

Mar 04 2014, 18:53 IST
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2013 has been an extraordinary year for the media and entertainment sector, says Uday Shankar. Reuters 2013 has been an extraordinary year for the media and entertainment sector, says Uday Shankar. Reuters
Summary2013 has been an extraordinary year for the media and entertainment sector, says Uday Shankar.

India's media & entertainment industry grew 12 per cent and touched Rs 92,800 crore in 2013, according to a Ficci-KPMG report.

The advertising revenues of mass media like television and newspapers were hit mainly on account of economic slowdown and depreciation in the rupee, affecting the fortunes of print, cable and DTH companies.

The Print sector grew at a CAGR of 8.5 per cent in 2013 to reach Rs 24,300 crore, the report found.

However, this was countered by the impact of continued digitisation of media products and services, and growth in the regional media domain.

"2013 has been an extraordinary year for the media and entertainment sector -- a year of challenges and significant change which saw the industry dealing with a host of issues," Chairman of FICCI M&E committee Uday Shankar said.

Digitisation of cable saw progress of television industry moving in the right direction, with the mandatory Digital Access System (DAS) rollout almost complete in Phase II cities. Consequently, carriage fees saw an overall reduction of 15-20 per cent, the study pointed out.

However, the anticipated increase in ARPUs and subscription revenues for broadcasters and MSOs (Multi System Operators) is expected to be realised only over the next 2 to 3 years, it said.

Other key highlights in 2013 were the inclusion of LC1 (less than class I) markets in TV ratings, the 12 minute advertising cap ruling and the shift from TRP to TVT ratings.

The study aloso found that growth of multiplexes is expected to slow down in the near future, in line with the overall delays and slow pace of retail sector and commercial real estate development, impacting box office growth in the short term.

Approximately 90-95 per cent movie screens are now digitised in the country, with a shift in focus to Tier II and III cities.

The film industry recorded a double digit growth in 2013 albeit slower than in 2012the previous year, with multiple movies scoring big on box office collections.

The total internet user base in India reached around 214 million in 2013 with almost 130 million going online using mobile devices. Mobile Internet users dominated the total internet user base capturing an overall share of 61 per cent.

Digital media advertising in India grew faster than any other advertising category. Streaming and download services continued to see growth in the music industry, with the growth in mobiles, in particular smartphones, contributing significantly to increased

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