India’s Media & Entertainment industry is poised to double in size by 2017. The FICCI-KPMG report released at the inaugural ceremony of FICCI Frames 2013 in Mumbai today, said the industry, whose current size is estimated at Rs 91,700 crores is expected to touch Rs 1,66,000 crores by 2017.
“This industry is an economic enterprise, which is capable of creating employment and wealth much faster than most other sectors and with the ability to be a force multiplier,” said Uday Shankar, Chairman of FICCI’s Media & Entertainment Committee. He said the growth of the industry should be supported by bold policy and regulatory initiatives. During his introductory remarks, Shankar, who is also CEO of STAR India, however, lamented lack of reliable data on audience measurement across verticals of the media and entertainment sector. “There are 140 million cable and satellite homes but the measured universe is 62 million households. I do not know how many subscribers I have with a particular MSO and the MSO doesn’t know how many households his LCO delivers the signals to” he said.
Delivering the key note address, Andy Bird, Chairman, Walt Disney International said his company is betting big on India “as the media & entertainment industry here is poised for a huge leap forward, with rapidly rising middle class and their traditional focus on the family”.
The FICCI –KPMG Report said that television continues to be the dominant segment of the M&E sector, although new media like animation, VFX, gaming and digital advertising are expected to post strong double digit growth during the next five years. In 2012, the television segment accounted for 45% of the Rs 83,100 crore market. Its share is likely to go up to 50% by 2017, with a size of Rs 84,760 crores of the Rs 166,100 crore market. Print media is expected to post a moderate Combined Annualized Growth Rate (CAGR) of 8.7% to touch Rs 34,020 crores from the 2012 level of Rs 22,410 crores. Indian film industry is slated to grow from the present Rs 11,240 crores to Rs 19,300 crores in 2017.
Similarly, the size of the advertising industry in India is estimated to be Rs 36,200 crores. Print media continues to account for a larger share at 44.7 % , followed by TV 38.2 %. By 2017, it is estimated that the size of the Indian advertising industry would be Rs 63,000 crores with both print and TV having a share of 38-40 % each. Digital advertising is estimated to post a robust 32.1 % growth to reach Rs 8,720 crores from the current modest level of Rs 2,170 crores.
FICCI Frames 2013, aims to deliberate on the growth of the industry and find ways to maximise both its creative and economic potential. The range of topics being covered include digitization, censorship, marketing, exhibition and distribution. South Korea is the partner country this year.
India’s Minister of State for External Affairs, Preneet Kaur, South Korea’s Deputy Minister for Culture, Sports and Tourism, Dr.Soon Tae Park, President, FICCI, Naina Lal Kidwai shared the dias with Mr. Uday Shankar and Andy Bird at the inaugural session that was moderated by well known filmmaker Karan Johar. Bollywood actress Kareena Kapoor joined the guests for the traditional lighting of the lamp.