The media & entertainment sector is expected to cross the ₹2.27 lakh crore mark by 2018, growing at a compounded annual growth rate (CAGR) of 15 per cent during the next five years, says a report released jointly by Confederation of Indian Industry (CII) and consulting firm PwC on Tuesday.

The report, titled ‘India Entertainment & Media Outlook 2014’, pegged the sector’s revenues at ₹1.12 lakh crore in 2013, recording a growth of about 19 per cent over last year.

The television sector, the largest segment, saw a growth of about 15 per cent on the back of strong growth momentum in subscription revenues driven by the ongoing digitisation process, it said. At the same time, internet access and online advertising were the fastest growing segments in 2013, with an annual growth of 47 per cent and 26 per cent, respectively.

The report expects the television sector to continue witnessing a robust growth of 15 per cent CAGR in the next five years touching the ₹84,600-crore mark, while internet advertising and access are also projected to continue being the fastest growing segments, with a CAGR of 28 per cent and 21 per cent, respectively.

Films

“The film segment, estimated at ₹12,600 crore in 2013, is projected to grow steadily at a CAGR of 12 per cent on the back of higher domestic and overseas box office collections as well as cable and satellite rights,” the report said.

Revenues from advertising are expected to grow at 13 per cent CAGR to cross the ₹ 60,000-crore mark by 2018 from ₹35,000 crore in 2013.

Television and print are expected to remain the largest contributors to the advertising pie in 2018, while internet advertising will emerge as the third largest segment, with a share of about 16 per cent.

Flexible models

Smita Jha, Leader, Entertainment and Media practice, PwC India, said, “Businesses no longer need a digital strategy, what they need is a business strategy fit for a digital age. The industry needs to get even closer to the consumer and adopt more flexible business models.”

“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 Chandrajit Banerjee, Director General, CII, in a statement.

comment COMMENT NOW