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Indian M&E sector expected to exceed Rs 227,000 crore by 2018: CII-PwC report
MUMBAI: India’s media and entertainment sector is expected to exceed Rs 227,000 crore (Rs 2270 billion) in 2018, growing at a CAGR of 15 per cent between 2013 and 2018, as per CII-PwC’s latest report titled India Entertainment & Media Outlook 2014.
In 2013, the overall M&E industry was pegged at Rs 112,044 crore (Rs 1120.44 billion), growing 19 per cent over the previous year.
Television, the largest segment, continued its strong growth momentum. Led by subscription revenues, it reported a year-on-year growth of about 15 per cent.
Internet access and internet advertising have been the fastest growing segments with annual growth rates of 47 and 26 per cent respectively.
“The key theme of our report this year is ‘monetisation strategies in media sector’. Clearly, the future lies in digital media as the internet segment is leading the growth in India.” said Confederation of Indian Industry (CII) director general Chandrajit Banerjee.
Revenue from advertising is expected to grow at a CAGR of 13 per cent and will exceed Rs 60,000 crore (Rs 600 billion) in 2018, from Rs 35,000 crore (Rs 350 billion) in 2013.
PwC India Leader, Entertainment and Media practice Smita Jha said, “Digital success does not just necessarily mean better, improved technology. It means applying a digital mindset to build the right behaviours among industry stakeholders. This includes getting ever closer to the customer across the entire organisation, and in everything it does.”
Television and print are expected to remain the largest contributors to the advertising pie in 2018 as well. Internet advertising will emerge as the third-largest segment, with a share of about 16 per cent in the total E&M advertising pie.
The film segment, estimated at Rs 12,600 crore (Rs 126 billion) in 2013, is projected to grow steadily at a CAGR of 12 per cent. This will come on the back of higher domestic and overseas box-office collections as well as cable and satellite rights.
With the rapidly increasing adoption of smartphones and tablets, the gaming sector is fast emerging as a promising source of revenue for the industry. Efforts by industry players as well as support from the government are expected to provide a major boost to the gaming sector, which is still in its infancy.
Out-of-home advertising is gradually expected to slide to the last position in terms of revenue contribution to the sector, with its share declining to 1 per cent in 2018, while music remains constant at 1 per cent revenue share between 2013 and 2018.