 "Media, entertainment to grow at 18% CAGR")
The report, which is to be published on Friday, also says that the sector will grow at a compounded annual growth rate (CAGR) of 18% annually until 2017.
“The size of the Indian M&E sector rose from about Rs 80,500 crore in 2011 to almost Rs 96,500 crore in 2012 representing a year-on-year growth of 20%. This growth was achieved in spite of a slowdown in the broader economy, underlining the resilience of the E&M sector. It is expected to grow at about 18% CAGR over 2012-2017 and reach revenues of about Rs 2,24,500 crore by 2017’, the report said.
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The report also said that the growth in the coming years will be aided by the introduction of cable TV digitization and continued growth of regional media in addition to the fast increasing new media businesses.
“We believe that innovation and thinking out of the box (and within the box) would be one of the game changers in this space,’’ Chandrajit Banerjee, Director General, Confederation of Indian Industry.
According to the report, India’s television market grew at 13% with revenues increasing from Rs 34,000 crore in 2011 to Rs 38,300 crore in 2012 while filmed entertainment revenues rose by 17% to Rs 11,200 crore 2012.
Meanwhile, print sector revenues are expected to increase at over 9% CAGR to reach Rs 33100 crore in 2017 from Rs 21,200 crore in 2012.
“The rapid rise of Internet usage, high penetration of smart phones, digital advertising, wireless broadband, digital content consumption, regulatory interventions have had a significant impact on the E&M sector.
The television and print sectors dominate the industry with contributions of 40% and 22% respectively in 2012. Internet access now commands about 18% share and films 12% of industry revenues, the report added.
The report also said that the share of print and films in the industry will witness a 15% and 9% decline over the next four years. “In 2017, television will continue to lead the industry in terms of revenue contribution with 39% share, followed by internet access with 28% share. The share of print and films are likely to decrease 15% and 9% in 2017”, it said.