The media and entertainment (M&E) industry is likely to grow at a marginally lower pace this year at 11.8 percent over 2012, and will touch Rs 91,700 crore, says a Ficci-KPMG report.
Mumbai: The media and entertainment (M&E) industry is likely to grow at a marginally lower pace this year at 11.8 percent over 2012, and will touch Rs 91,700 crore, says a Ficci-KPMG report.
Last year, the domestic M&E industry grew at 12.6 percent to Rs 82,000 crore from Rs 72,800 crore the year before, said the report.
"While 2012 was a challenging year, the M&E industry looks better going forward and is estimated to grow 11.8 percent to touch Rs 91,700 crore in 2013," said the Ficci-KPMG Media & Entertainment 2013 Report, released ahead of the Ficci-Frames meet beginning next week here.
The report is bullish about the future, saying the sector is poised to clip at a healthy CAGR of 15.2 percent to reach Rs 1,66,100 crore or Rs 1.67 trillion by 2017.
Though the report notes that television continues to be the dominant segment, its says new media sectors, animation/VFX and films and music sectors are witnessing stronger growth.
Radio is anticipated to see a spurt in growth at a CAGR of 16.6 percent from 2012 to 2017, on the back of third phase of licensing.
According to the report, total advertising spend across media was a little over Rs 32,700 crore in 2012. Due to continued slowdown in the general economy, advertising saw a growth of only 9 percent in 2012 as against 13 percent in 2011 and 17 percent in 2010.
Print continues to be the largest beneficiary of advertising, accounting for 46 percent of the ad pie at Rs 15,000 crore.
Ficci M&E committee chairman Uday Shankar said, "2012 was one of the toughest years in recent times. But it has also been a landmark year for the sector with significant progress in all verticals: the signs are already evident that digitalisation will fundamentally change broadcasting, films have scaled up their ambitions, and radio and print continue to defy global trends. This year promises to be even more disruptive."
KPMG M&E head Jehil Thakkar said, "2012 was a year in which important foundations for future growth were laid. The advertising environment went through one of the toughest years in a decade.
"However, digitisation, stellar performance of films and their digital distribution, continued growth in regional print and new media momentum and announcement of Phase 3 radio licensing have all finally provided the needed platform to boost the industry."
On digitisation of film and TV distribution, the report says the film industry has achieved 77 percent digitisation of screens and expects to be close to 100 percent in the next 18-24 months.
Overall, digital technology is expected to drive growth in the M&E sector, by spurring on end-user spending and transparency, it said.