The Indian Media & Entertainment (M&E) industry registered a growth of 12 per cent in 2011 over 2010 and touched Rs 1,45,700 crore, according to a FICCI-KPMG report. The growth trajectory is backed by strong consumption in Tier 2 and 3 cities, continued growth of regional media and fast increasing new media business. Overall the industry is expected to register an average annual growth of 15 per cent.

While television continues to be the dominant medium, sectors such as animation and VFX, digital advertising and gaming are fast increasing their share in the overall pie.

Radio is expected to display a healthy growth rate after the advent of Phase 3. Print, while witnessing a decline in growth rate, will still continue to be the second largest medium in the Indian M&E industry. Also, the film industry had reason to cheer with multiple movies crossing the Rs100 crore mark in domestic theatrical collections and Rs 30 crore mark in C&S rights, the report said.

Advertising spends across all media accounted for Rs 300 billion in 2011, contributing to 41 per cent of the overall M&E industry revenues. Advertising revenues witnessed a growth of 13 per cent in 2011 as against 17 per cent observed in 2010.

According to Mr Yash Chopra, Chairman, FICCI Entertainment Committee, “2011 was clearly the year where digital technologies began to deliver on their promise. Digital film distribution has helped wider film releases and helped control costs. In television, the digitization of cable will transform business models of all stakeholders and offer consumers more choice and convenience. Even as digital generates new opportunities, it also brings with it challenges that the industry must solve more urgently than anticipated.”

In terms of performance, 2011 proved to be a year with mixed results in terms of growth across different sub sectors. The traditional media businesses experienced a slow down compared to last year, especially in the second half of the year. However, the new media segments like Animation and VFX, online and gaming businesses witnessed phenomenal growth rates.

Mr Rajiv Kumar, Secretary General, FICCI, said, “The key highlights are rise in digital content consumption, launch of diverse content delivery platforms, strong consumption in Tier 2 and 3 cities, rising footprint of the players in the regional media, rapidly increasing new media business and regulatory shifts.”

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