Indian media and entertainment industry to touch Rs 1.15 lakh cr mark by 2012

KOLKATA: The Indian Media & Entertainment industry grew from Rs 728 billion in 2011 to Rs 820 billion in 2012, registering an overall growth of 12.6%, says a Ficci-KPMG report. While, 2012 was a challenging year for the industry, it says, with some improvement likely in the global economy in 2013 and India's real GDP expected to be in the region of 6.1% to 6.7%, the prognosis for the industry looks much better going forward.

"Given the impetus introduced by digitization, continued growth of regional media, upcoming elections, continued strength in the film sector and fast increasing new media businesses, the industry is estimated to achieve a growth of 11.8 percent in 2013 to touch Rs 917 billion. Going forward, the sector is projected to grow at a healthy CAGR of 15.2 percent to reach Rs 1,661 billion by 2017," says the Ficci-KPMG Media & Entertainment 2013 report.

Television continues to be the dominant segment; however, the report records strong growth posted by new media sectors, animation/VFX and a comeback in the films and music sectors on the back of strong content and the benefits of digitization.

The report goes on to say, "Radio is anticipated to see a spurt in growth at a CAGR of 16.6% over the period 2012-2017, post the rollout of Phase 3 licensing."

Total advertising spend across media was Rs 327.4 billion in 2012. In light of continued economic slowdown, advertising revenues saw a growth of 9% in 2012 as against 13% in 2011 and 17% in 2010. Print continues to be the largest beneficiary, accounting for 46 percent of the advertising pie at Rs 150 billion.