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Indian media & industry sector nudges Rs 1 lakh crore size

Wednesday, 5 March 2014 - 6:00am IST | Agency: dna

The Indian media & entertainment (M&E) sector registered a growth of around 12% to touch Rs 92,000 crore in 2013, as per an annual FICCI-KPMG report that is scheduled to released at the Ficci Frames conclave on March 12. The overall growth has stayed muted thanks to the economic slowdown which impacted advertising revenue-dependent sectors of television and print.

Jehil Thakkar, head of media and entertainment, KPMG in India, said, "Last year, the focus shifted from topline to bottomline growth with companies focusing on operations and efficiency. The sector grew 12%, a far better performance than many other industries."

According to the Ficci-KPMG study, digitisation of cable saw carriage fees going down by 15-20%. Other key highlights of last year were the inclusion of LC1 (less than class I) markets in TV ratings, the 12-minute advertising cap ruling and the shift from TRP to TVT ratings.

The film industry recorded a double-digit growth, albeit slower than in 2012, with multiple movies scoring big on Box Office collections. The print sector continued to buck the global slowdown trend. The sector grew at a CAGR of 8.5% this year to reach Rs 24,300 crore, as per the report. The total internet user base in India grew to around 214 million by end of the year, with almost 130 million going online using mobile devices. Streaming and download services continued to see growth in the music industry, with the growth in mobiles, particularly smartphones, contributing significantly to increased consumption of music 'on-the-go'.

However, with continued decline in physical sales, compounded by the significant fall in ringback tone revenues (following the backlash of Telecom Regulatory Development Authority guidelines issues in 2012), the sector saw an overall 10% drop in 2013.

Going forward, digital revenues are expected to drive growth in the sector. The vibrant live events sector, too, is expected to continue its role as a catalyst for driving growth in artists' fan-base, and public performance royalties.

Uday Shankar, chairman, Ficci M&E committee, said, "2013 was a year of challenges and significant change. I am certain that the insights and findings from this report will provide a comprehensive and useful lens for all of us in the industry."

By arrangement with MxMIndia.com

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