Media, entertainment sectors to grow 13% this year

Our Bureau Mumbai | Updated on March 21, 2011

According to a FICCI-KPMG report, the Media and Entertainment (M&E) sectors in India grew by 11 per cent in 2010 to Rs 65,200 crore. The report estimates that the sectors will grow at 13 per cent in 2011, before reaching Rs 1,27,500 crore by 2015.

Television is expected to account for half of the overall revenues of the M&E industry.

The net DTH subscriber base stood at 2.8 crore at the end of 2010, an addition of 1.2 crore subscribers or a growth of 75 per cent.

The television industry grew by 15.5 per cent in 2010 and is expected to grow at a CAGR of 16 per cent to touch Rs 63,000 crore by 2015.

The medium of print is second largest by revenue, though it is only ‘about half the size of television'.

The print sector grew by 10 per cent in 2010, and is expected to continue to grow at the same rate and touch Rs 31,000 crore by 2015.

The report also notes that barring film, all other sectors grew in 2010. Advertising — across sectors — grew by 17 per cent in 2010 to Rs 26,600 crore, accounting for 41 per cent of the M&E industry.

“Sectors such as gaming, digital advertising, and animation VFX grew at a faster rate and show tremendous potential in the coming years,” adds the report.

"The full report is to be formally unveiled at FICCI Frames in Mumbai on March 23.

Growth drivers

Dr Amit Mitra, Secretary General, FICCI, said, “The key industry highlights are the growing potential of the regional markets, increasing media penetration and per capita consumption and increasing importance of new media driven by changing media consumption patterns”.

Mr Rajesh Jain, Head of Media and Entertainment, KPMG, added, “The resurgence in advertising, growth in subscription revenues, thrust on digitisation, and emerging avenues for content monetisation were the key growth drivers in 2010. Going forward, it will become imperative for media companies to reset their business models and build greater focus on profitability and changing consumer preferences.”

Published on March 21, 2011

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