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Indian M&E sector to grow at CAGR of 13.9% to Rs 1,964 bn by 2019: Deloitte
MUMBAI: The media and entertainment industry is projected to grow at a CAGR of 13.9 per cent to reach Rs 1,964 billion by 2019, according to a new report by Deloitte.
The growing demand for content consumption from Tier II and Tier III cities will enable the entire M&E value chain to connect with, engage and monetise India’s strong youthful demographic. Organisations in the Indian M&E sector are poised for substantial growth in the coming years.
Government initiatives such as ‘Make in India’ and ‘Digital India’ will further help to achieve substantial growth in the coming years, says Assocham report on ‘Digitisation & mobility: Next frontier of growth for M&E’.
The report done by Deloitte provides insights into evolving trends, challenges and future opportunities across broadcasting digitisation, the film industry and mobile entertainment.
Assocham president and Yes Bank MD & CEO Rana Kapoor said, “The Indian media and entertainment industry has undergone a positive transformation with better content generation, mobility, digitisation and growth in new media, resulting in an exemplary shift in consumer behaviour and media consumption patterns. Recent regulatory interventions such as the increased FDI limit in the broadcast distribution platforms like cable TV networks, DTH, headend-in-the-sky (HITS), mobile TV and radio will continue to be key enablers for growth of this industry.”
Digitisation and mobility will drive share of video in internet data traffic to increase to 64 per cent in FY 2017. The report notes that with the increase in the number of internet users to 200 million currently, the impact of digital technology on media consumption has already demonstrated the power of the internet to disrupt linear traditional media.
However, the lack of global appeal for Bollywood movies remains a challenge. The industry has not yet been able to create universally appealing movies for a global audience. Although new directors exposed to Western styles of filmmaking are making movies keeping in mind the sensibilities of a global audience, nobody right now can predict that films popular in India will be able to find a global audience.
The report argues that perception needs to change about Indian cinematic styles to make the crossover to western audiences. Song and dance are part of Indian films and it will take a while before they are accepted in the mainstream globally.
Big Indian movies make $7–10 million abroad. There may be a bigger market as the appeal goes beyond the 22 million NRIs to local audiences in China, Morocco, Hong Kong and other countries. New markets like Germany, Peru, France and Poland need to be nurtured. The performance of the overseas market depends on Indian studios’ acquiring scale as well as on global audiences accepting that Indian cinema is more than just Bollywood.
Commercial films have started adopting new themes and have found success at the box office. ‘Gangs of Wasseypur’ has been highlighted as a critical film that tests how hard a studio can push in their bid to revive the overseas market for Indian films. Hindi films only contribute 15 per cent to the total number of movies made. Increasingly, regional cinema is making its mark. Production houses like Reliance Entertainment, Eros and Disney UTV will aim to spend 20 per cent of their budgets on regional cinema.
Southern cinema grows both here and abroad and may soon dethrone Bollywood from the top spot.
The report notes that a few stars have crossed over to Hollywood. Irrfan Khan is one of them having done films like ‘A Mighty Heart’ and the Oscar-winning ‘Life of Pi’. After doing ‘Slumdog Millionaire’, Anil Kapoor appeared in the TV show ’24’ with Kiefer Sutherland.
The report also mentions the 2014 IIFA Awards in Florida. This was the first time that the show went to the US. That event generated nearly $32 million in direct spending and had a total economic impact of $56 million.