The media and entertainment (M&E) industry would almost double to Rs 2.26 lakh crore in next five years, mainly led by growth in advertising revenue which is expected to touch Rs 99,400 crore by 2020, says a report.
The media and entertainment (M&E) industry would almost double to Rs 2.26 lakh crore in next five years, mainly led by growth in advertising revenue which is expected to touch Rs 99,400 crore by 2020, says a report.
The total advertising revenue of M&E sector was around Rs 47,500 crore in 2015 as against Rs 41,400 crore in 2014, a jump of 14.7%, the joint report by FICCI-KPMG said.
While, the overall the sector grew by 12.8% to Rs 1.15 lakh crore in 2015 as against Rs 1.02 lakh crore of 2014, it added.
"M&E industry in India is poised to grow at a CAGR of 14.3% to INR 2260 billion by 2020, led by advertising revenue which is expected to grow to INR 994 billion at a CAGR of 15.9%," the Media and Entertainment Industry Report 2016 said.
The report also said that by 2020 the digital advertising would scale up to Rs 25,500 crore and contribute to 25.7% of total advertising revenues.
"Increased share of mobile and video advertising as part of digital media is one of the things to look forward to as well," it added.
Digital format would have the highest growth of 33.5% in the advertising segment between 2015-20, followed by Radio with 16.9%.
In 2016, digital advertising is projected to be around Rs 8,100 crore and is expected to be around Rs 25,500 crore by 2020, while radio advertising would be around Rs 2,340 crore in 2016 and touch Rs 4,330 crore by that time.
"Digital advertising continued its strong run with 38.2% growth over 2014 as a mounting Internet user base and data usage were supplemented by increased spend allocation by marketers," it added.
While, television medium is expected to grow at a CAGR of 15.1% as advertising revenues will continue to show a robust growth.
This would happen despite delay in digitisation of home cable delivery system, which would mean that subscription growth would be slower than anticipated.
"Films are expected to grow at 10.5% CAGR though largely on the back of growing acceptance of the regional and Hollywood content," it said.
However, lack of screen density is a key constraint to sustained growth especially for Bollywood content, it added.
"Print growth expected at 7.8% CAGR continues to be driven by growing regional markets with rural demand expected to be strong on the back of multiple government initiatives supplemented by headroom for circulation growth," the report said.
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