M&E to touch Rs 1.4 lakh cr by ’16

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M&E to touch Rs 1.4 lakh cr by ’16​

Media and entertainment saw 12% growth in 2011 to reach Rs 72,800 crore
The Indian media & entertainment (M&E) industry saw a 12 per cent growth in 2011 over 2010 to reach Rs 72,800 crore, according to a Ficci-KPMG report, which will be formally released at the inaugural session of Ficci Frames 2012 on March 14. The industry is expected to register a compounded annualised growth rate (CAGR) of 15 per cent to touch Rs 1,45,700 crore by 2016.

The film industry too, had a reason to cheer as multiple movies crossed the Rs 100-crore mark in domestic theatrical collections and Rs 30-crore mark in cable and satellite TV (C&S) rights. The growth trajectory of the industry is backed by strong consumption in tier II and III cities, continued growth of regional media and fast increasing new media business, according to the report.

While television continues to be the dominant medium, sectors such as animation & VFX, digital advertising and gaming are fast increasing their share in the overall pie. Radio is expected to show a healthy growth rate after the advent of phase III of FM broadcasting. Print, while witnessing a decline in growth rate, will still continue to be the second-largest medium in the Indian M&E industry, said the report.

Advertising spends across all media accounted for Rs 30,000 crore in 2011, contributing 41 per cent of the overall M&E industry revenues. Advertising revenues witnessed a growth of 13 per cent in 2011 against 17 per cent observed in 2010.

“The key highlights this year are rise in digital content consumption, launch of diverse content delivery platforms, strong consumption in tier II and III cities, rising footprint of the players in the regional media, rapidly increasing new media business and regulatory shifts,” said Rajiv Kumar, secretary general at Ficci.

Filmmaker Yash Chopra, chairman of Ficci’s entertainment committee, said, “This year saw digital technologies delivering on their promise. Digital film distribution has helped wider film releases and has also helped in controlling costs. In television, the digitisation of cable will transform business models of all stakeholders and offer consumers more choice and convenience.”

Even as digital technologies generate new opportunities, it also brings with it challenges that the industry must solve more urgently than anticipated, Chopra added.

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

Jehil Thakkar, head of media and entertainment at KPMG, said, “The M&E industry landscape is undergoing a significant shift. 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 with a host of new opportunities emerging.”

“M&E landscape is beginning to change with national cross media conglomerates emerging, and consolidation and deal making finally gaining pace,” said Rajesh Jain, head of markets at KPMG.

Digital technology continues to revolutionise media distribution, be it the rapid growth of DTH and the promise of digital cable, or increased digitisation of film exhibition, and has enabled wider and cost effective reach across diverse and regional markets, and the development of targeted media content, the report added.


Source : http://www.mydigitalfc.com/news/me-touch-rs-14-lakh-cr-%E2%80%9916-588