Indian M&E to touch $34.8b by 2021; ad spends pegged at $16.7b: EY Report
The Indian Media & Entertainment industry is expected to touch $34.8 billion, witnessing a CAGR of 11.8 per cent over 2016-21, according to a report titled ‘Digital inflection point: Indian media and entertainment’, released at the FICCI-IIFA Global Business Forum in New York.
Amongst the sub-sectors in the Media & Entertainment industry, Digital (which includes Digital advertising, advertising on mobile, OTT, etc.) is expected to register the highest growth at 26 per cent CAGR in the 2016-2021 period. This is followed by the organised sector (expected to grow at 16 per cent CAGR), Radio (at 14 per cent CAGR), TV (at 11 per cent CAGR), Music (11 per cent CAGR), films (at 10 per cent CAGR), and Print (at 7 per cent CAGR), respectively, in the same period.
Commenting on the report, Ashish Pherwani, Partner – Advisory, Media and Entertainment, EY, said, “The Indian M&E sector is at a digital crossroad today. Every segment of the industry, including print, TV, radio, film, experiential marketing and OTT, is being impacted by digitisation, and is showing growth, consolidation and innovation. It presents an excellent opportunity for companies looking at establishing and expanding their presence in the country, and making the most of the India digital growth story.”
Leena Jaisani, Assistant Secretary General, FICCI, noted, “India is home to one of the most vibrant, dynamic and differentiated M&E markets in the world. The Indian M&E industry has adapted and innovated its offerings to cater to the huge and varied demand in each segment of the industry, be it Films, Broadcast, Digital, Animation, Print or Live Events. The Government has been imperative in boosting growth, investment opportunities and facilitating ease of doing business in the industry with initiatives such as single window clearance, favourable tax incentives, policies and regulations in place. Today definitely is the time to invest in Indian Media & Entertainment industry.”
According to the report, currently, television continues to dominate the M&E sector, with the segment accounting for 46 per cent of the sector’s revenue share in 2016. Television, print (23 per cent) and film (11 per cent) segments together accounted for ~80 per cent market share in 2016. Digital (6 per cent), organised events (4 per cent), Radio (2 per cent), music (1 per cent), and other segments (7 per cent) constitute the other 20 per cent.
In 2016, total advertising spend across all segments in India stood at $8.18 billion, which is estimated to reach $16.7 billion in 2020. Print media and TV together accounted for 76.2 per cent of the total revenue from advertising in 2016. Mobile advertising has emerged as the third largest advertising medium in India after TV and print, notes the report.
The report also predicts that the subscription market – pegged at $9.3 billion in 2016 – will grow to $15 billion by 2020.