Scenario of Media and Entertainment Industry

The Indian media and entertainment industry has grown by 11.8 per cent in 2013, from 2012, and touched Rs 91.8 crores. It is expected to touch Rs 1785.8 billion by 2018, with a CAGR of 14.2 per cent.

By the end of 2014, the industry is expected to stand at Rs 1039 billion. Additionally, digital advertising has shown promising growth in 2013, from 2012, which is about 38.7 per cent, followed by gaming which grew by 25.5 per cent.Media and entertainment industry contributing 50,000 Crores to the country’s economy has equating to 0.5% of GDP, in 2013.

As for the 2018 prediction: Digital advertising is expected to lead the CAGR with 27.7 per cent, followed by radio with 18.1 per cent. Gaming and television are expected to register a CAGR of 16.2 per cent each, followed by growth rates of animation and VFX (15.9 per cent), music (13.2 per cent), films (11.9 per cent) and OOH with 9.2 per cent expected CAGR.

In 2013, Deloitte predicted that television will continue to dominate as a media source and as an impactful medium for advertising. With the advent of digitisation, the industry is expected to expand its reach using the digital platform to virtually every corner of the country.Going by the numbers, India’s FM radio industry accounts for just four per cent of India’s total advertising industry and the market size of the sector has been estimated to be at INR 14 billion in 2012-13 with almost 40 radio broadcasters providing services in 245 stations in 86 cities, as per a recent study.

Print stands last as far as the expected growth is concerned with 9 per cent CAGR.Within TV, subscription revenues are expected to be three times more than advertising revenues, by 2018.According to a FICCIreport launched on March . The sector also supports a significant 18.8 lac jobs. 

Print and TV media contribute over 75% of the advertisement spend in a year. As the Indian economy continues to develop and the media reach increases, the advertising expenditure to GDP ratio is expected to increase over the next 5 years.

The size of the Film Industry is estimated at INR 122 billion in 2013 and is expected to grow at a CAGR of 12% to reach INR 193 billon by 2017.

Industry size and projections

Overall industry size (Rs billion)	2012	2013	Growth in 2013 over 2012	2014p	2015p	2016p	2017p	2018p	CAGR (2013-18)
TV	370.1	417.2	12.70%	478.9	567.4	672.4	771.9	885	16.20%
Print	224.1	243.1	8.50%	264	287	313	343	374	9.00%
Films	112.4	125.3	11.50%	138	158.3	181.3	200	219.8	11.90%
Radio	12.7	14.6	15.00%	16.6	19	23	27.8	33.6	18.10%
Music	10.6	9.6	-9.90%	10.1	11.3	13.2	15.1	17.8	13.20%
OOH	18.2	19.3	5.90%	21.2	23.1	25.2	27.5	30	9.20%
Animation and VFX	35.3	39.7	12.50%	45	51.7	60	70.2	82.9	15.90%
Gaming	15.3	19.2	25.50%	23.5	28	32.3	36.1	40.6	16.20%
Digital Advt.	21.7	30.1	38.70%	41.2	55.1	69.7	88.1	102.2	27.70%
Total	821	918	11.80%	1039	1201	1390	1580	1786	14.20%

Source: KPMG in India analysis

Major Players

Print- Jagran Prakashan, HT Mediaand Deccan Chronicle

Broadcaster - Zee TV, TV 18, UTV, NDTV and Sun TV.
Top leading Advertising Companies - Ogilvy and Mather, J Walter Thompson India, Mudra Communication Pvt. Ltd, FCB-Ulka Advertising Ltd, Rediffusion-DY&R, McCann-Erickson India Ltd

Employment (Workforce Demand)

The total current employment in the Media & Entertainment Industry is estimated at 4.6 lakh5, and is projected to grow at a CAGR of 13% to 7.5 lakh by 2017.

Key Trends

Digitization: With the regulatory push on digitization, ongoing 3G rollouts, increasing mobile and broadband penetration, the market for digital distribution platforms is growing.

New Media: The way media is consumed are being driven by factors such as content pull from telecom service providers due to the 3G launch, emerging gaming platforms and innovation in technological devices such as tablets. The new breeds of smart TVs are offering excellent convergence opportunities.

Innovation: It is becoming increasingly important for industry players to continuously innovate new formats and strategies in order to enable brand loyalty help expand the market.

Consolidation: Mature players are increasingly looking to build scale across the media value chain and explore cross media synergies. In addition, existing foreign players are looking to expand their Indian portfolio and several other are expected to make an entry into India.

Regulation to drive growth: The government’s thrust on digitization and addressability for cable television, is expected to increase the pace of digitization leading to tremendous growth in DTH and digital cable.

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