Media & Entertainment (M&E) industry grew by around 12 per cent in 2013, according to the annual FICCI-KPMG report.

The economic slowdown had a negative impact on the advertising revenue dependent sectors, such as TV and print. The rupee depreciation also affected print, cable and DTH companies adversely, but helped export-oriented sectors such as animation and VFX to some degree.

Digital Access System (DAS) rollout in Phase-II cities saw a reduction in carriage cos of 15-20 per cent overall. 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 2-3 years, the study said.  

The film industry recorded a double digit growth, albeit slower than in 2012, with multiple movies scoring big on box office collections. Approximately 90-95 per cent movie screens are now digitised in the country, with a shift in focus to tier II and III cities.

Going forward, multiplex growth is expected to slow down, in line with the overall delays and commercial real estate development, impacting box office growth in the short term, the report observed.  

Print media

The print sector grew at a CAGR of 8.5 per cent this year to reach Rs 24,300 crore. Regional markets performed exceedingly well on the back of steady advertiser spends, state election impact and new launches. However, with the validity of IRS data called into question by the industry majors, the sector in the short term suffers from the lack of a robust measurement system, critical for decisions on media planning and allocations.

The total internet user base in India grew to approximately 214 million by end of the year 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 consumption of music ‘on-the-go’.

“However, with the continued decline in physical sales, compounded by the significant fall in ringback tone revenues (following the backlash of TRAI guidelines issues in 2012), the sector saw an overall fall in size by 10 per cent in 2013," the report said.

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