CII-PwC: Indian E&M industry to clock over Rs 2,24,500 cr by 2017

India's Entertainment & Media (E&M) sector is expected to grow steadily over the next five years as per CII-PwC's latest report titled 'India Entertainment & Media Outlook 2013'. The industry is expected to exceed INR 2,24,500 crore growing at a CAGR of 18 percentfrom 2012 to 2017.

The report finds that the size of the Indian E&M sector increased from about Rs 805 bn in 2011 to almost Rs 965 bn in 2012, representing an year-on-year growth of 20 percent. This growth was achieved in spite of a relative slowdown in the broader economy, underlining the resilience of the E&M sector. It is expected to grow at about 18 percent CAGR over 2012-2017 and reach revenues of about 2,245 billion INR in 2017.

"This growth is driven by the introduction of cable TV digitization, continued growth of regional media, continued strength of the filmed entertainment sector, fast increasing new media businesses and transparency. We believe that innovation - faster, better, more efficient, thinking out of the box (and within the box) - would be one of the game changers in this space," said Chandrajit Banerjee, Director General, Confederation of Indian Industry.

Smita Jha, Leader Entertainment & Media Practice, PwC India, said, "With increasing proliferation of digital platforms, industry participants will need to invest in constant innovation that encompasses products and services, business and operating models and most importantly, consumer experience and engagement. Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services."

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India's television market grew at 13 percent with revenues increasing from Rs 340 bn in 2011 to Rs 383 bn in 2012. Filmed entertainment also demonstrated stellar growth in 2012 with sector revenues increasing by about 17 percent from Rs 96 bn in 2011 to Rs 112 bn in 2012. The print sector revenues are expected to increase at over 9 percent CAGR to reach Rs 331 bn in 2017 from Rs 212 bn in 2012.

Year-on-year sectors such as internet access (30 percent), internet advertising (29 percent), gaming (19 percent), and music (15 percent) are expected to continue on their high growth trajectory. The radio sector is also expected to receive a fillip with the successful conclusion of Phase III licence auctions and it is expected to grow at a robust CAGR of about 16 percent.

The television and print sectors dominate the industry with about 40 percent and 22 percent contribution to industry revenues respectively in 2012. Internet access now commands about 18 percent share and films 12 percent of industry revenues. However, in 2017, television will continue to lead the industry in terms of revenue contribution with 39 percent share, followed by internet access with 28 percent share. The share of print and films are likely to decrease 15 percent and 9 percent in 2017. The report states that overall, the Indian E&M industry is on the cusp of a strong phase of growth, backed by rising consumer payments and advertising revenues across all sectors.