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Indian M&E sector to grow at 11.8% CAGR to $34.8 bn by 2021: EY

MUMBAI: The Indian media and entertainment industry is expected to grow at a CAGR of 11.8% over 2016–21 to touch $34.8 billion, according to a report titled ‘Digital inflection point: Indian media and entertainment’, released at the FICCI-IIFA Global Business Forum in New York.

Among the sub-sectors in the M&E industry, digital (which includes digital advertising, advertising on mobile, OTT, etc.) is expected to register the highest growth at 26% CAGR during 2016–21. This is followed by the organised sector (expected to grow at 16% CAGR), radio (at 14% CAGR), TV (at 11% CAGR), music (11% CAGR), film (at 10% CAGR) and print (at 7% CAGR) in the same period.

According to the report, currently television continues to dominate the M&E sector, with the segment accounting for 46% of the sector’s revenue share in 2016. Television, print (23%) and film (11%) segments together accounted for 80% market share in 2016. Digital (6%), organised events (4%), radio (2%), music (1%) and other segments (7%) constitute the other 20%.

In 2016, total advertising spend across all segments in India stood at $8.18 billion, which is estimated to reach $16.7 billion in 2020. Print media and TV together accounted for 76.2% of the total revenue from advertising in 2016. Mobile advertising has emerged as the third-largest advertising medium in India after TV and print, notes the report.

The report also predicts that the subscription market will grow to $15 billion by 2020. It is currently pegged at $9.3 billion in 2016.

Commenting on the report, EY partner – advisory, media and entertainment Ashish Pherwani said, “The Indian M&E sector is at a digital crossroads today. Every segment of the industry, including print, TV, radio, film, experiential marketing and OTT, is being impacted by digitisation, and is showing growth, consolidation and innovation. It presents an excellent opportunity for companies looking at establishing and expanding their presence in the country, and making the most of the India digital growth story.”

FICCI assistant secretary general Leena Jaisani said, “India is home to one of the most vibrant, dynamic and differentiated M&E markets in the world. The Indian M&E industry has adapted and innovated its offerings to cater to the huge and varied demand in each segment of the industry, be it films, broadcast, digital, animation, print or live events. The government has been imperative in boosting growth, investment opportunities and facilitating ease of doing business in the industry with initiatives such as single window clearance, favourable tax incentives, policies and regulations in place. Today definitely is the time to invest in the Indian M&E industry.”