Ronita Torcato

Indian Media & Entertainment Industry to touch INR 1466 Billion by 2016: FICCI-KPMG report Industry Achieves 12 per cent Growth in 2011; projected to Grow at CAGR of 15% Over Next 5 Yrs

 In 2011, the Indian Media & Entertainment (M&E) industry registered a growth of 12 percent over 2010 and touched INR 1,457 billon, says 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 a CAGR of 15 percent to touch INR 1457 billion by 2015. The report was formally released at the inaugural session of FICCI FRAMES 2012 today, March 14, 2012.

2011 has been a challenging year not just for the Indian M&E industry, or even the Indian economy, but for the larger world economy. While India is still expected to grow at a healthy pace, growth is projected to be lower than earlier expectations. 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 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 100 crore mark in domestic theatrical collections and 30 crore mark in C&S rights.  Advertising spends across all media accounted for INR 300 billion in 2011, contributing to 41 percent of the overall M&E industry revenues. Advertising revenues witnessed a growth of 13 percent in 2011 as against 17% 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.”