The Indian Media and Entertainment (M&E) industry is poised to touch Rs 1.09 lakh crore by 2014, driven by economic recovery, expected rise in advertising spends and increasing media penetration, a study today said.
According to a Ficci-KPMG report, over the next five years the M&E industry is projected to grow at a compound annual growth rate (CAGR) of 13 per cent to reach Rs 1.09 lakh crore by 2014.
With economic slowdown and cut down in advertising spends, the industry went through a tough phase but recovery was seen in the last quarter of 2009, which is expected to continue in 2010.
The study shows that in 2009 the industry stood at Rs 58,700 crore, up 1.4 per cent over the previous year, while subscription revenues of TV and print grew by 8.5 per cent to reach Rs 24,100 crore.
Advertising spends, which grew at 10 per cent CAGR in the past three years, was almost flat in 2009. But going forward, the segment is expected to rise by 14 per cent CAGR over the next five years.
"The media & entertainment industry represents the face of consumers in India. Despite the challenging last year, I'm excited by the potential of the industry to perhaps grow beyond 13 per cent per annum over the next few years," Ficci Secretary General Amit Mitra said.
The report said with changing landscape and emerging challenges in the industry, players now have a stronger focus on profitability.