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India’s TV sector to grow 17% over 5 years despite slowdown
The global economic slump contained the surging growth of India's media and entertainment (M&E) industry at 12% during 2011, according to new Ficci-KPMG research.
Overall the consultants suggest the M&E industry was worth INR 1,457 billion last year. Of this, television accounted for an estimated INR 329 billion in 2011, and is expected to grow at a compound annual growth rate of 17% over 2011-16, to reach INR 735 billion in 2016.
Television remains the domineering sector in India's media and entertainment industry, and with television penetration currently thought to be around 60% of all Indian households, the report points to room for expansion yet in the sector.
Ficci-KPMG predicts pay-TV subscription revenue will increase from 65% in 2011 to 69% by 2016.
"In television, the digitisation 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," said Yash Chopra, chairman, Ficci Entertainment Committee.
Digital delivery, via direct to home (DTH) platforms or increasingly digital cable TV, has enabled a strong and cost effective reach across diverse markets, and with it targeted content. Indeed, regional TV marked impressive growth in 2011, due to both increased regional incomes and consumption, according to Ficci-KPMG.
Smart phones, tablets, PCs, gaming devices, and connected TVs are combining to change the country's media landscape, and gradually impacting the way its content is both created and distributed.
"Cable digitisation, the promise of wireless broadband, increasing DTH penetration, digitisation of film distribution, growing Internet use are all prompting strategic shifts in the way companies work. Traditional business models are evolving for the better as a host of new opportunities emerge," said Jehil Thakkar, head of media and entertainment, KPMG.
'Game changers' for the next industry growth wave will, researchers say, be the phased roll out of digital cable TV and the rolling out of 4G mobile networks.
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