Media and entertainment industry in South India is expected to grow at compound annual growth rate (CAGR) of 16 per cent to Rs 43,600 crore by 2017 driven by popularity of vernacular content and rapid digitisation, a report by Deloitte and Ficci said.
The projected growth is against Rs 23,900 crore in FY2013, Deloitte, a leading global professional services firm, and Federation of Indian Chambers of Commerce and Industry said in a release quoting from its report Media & Entertainment in South India - the Digital March.
This growth will be mainly driven by popularity of vernacular content among the region's populace and the evolving ecosystem, including endeavors by media vehicles to expand their presence, the report added.
Stating that market is dominated by television (56 per cent), followed by print (28 per cent) and films (11 per cent), the report said: "Sectors such as new media and radio, though smaller than other mediums, are expected to grow at rates higher than the industry average, given their increasing power of engagement."
Pointing out that television constitutes the largest segment of the South Indian M&E industry, it said, it is currently estimated at Rs 13,470 crore, accounting for the largest share of the overall market at 56 per cent.
The medium is expected to grow at a CAGR of 20 per cent over the next four years due to benefits of digitisation being realised, it added.
The report further said print is the second largest segment accounting for 28 per cent of the overall market in FY 2013 at Rs 6,680 crore.
English players are launching vernacular dailies as advertising revenue from vernacular print in the region is estimated to grow at twice the pace of that of English, largely driven by local advertisers and increasing focus of national advertiser's beyond Tier 1 cities.
Print industry is also trying to identify monetisation opportunities online by developing mobile apps and mobile optimised websites.
With players identifying innovative ways to reach out to their readers, Print industry is also expected to see a steady CAGR of 8 per cent till FY 2017, the report said.