Inspite note ban shaving off upto 250 basis points growth across all sub-segments, the media and entertainment industry clipped at 9.1 per cent in 2016 driven by over 11 per cent growth in advertising, says a report.
The industry is likely to grow at 13.1 per cent this year, with the economy recovering from the lingering effects of demonetisation and initial uncertainties arising from GST implementation, the FICCI-KPMG report said.
However, it is projected to grow at a faster clip of 14 per cent during 2017-21, with advertising revenues expected to increase at a CAGR of 15.3 per cent.
"The long-term factors driving the future growth are expected to remain positive, with growing rural demand, increasing digital access and consumption, and the expected culmination of the digitisation process of television distribution over the next 2-3 years," KPMG India Media and Entertainment Director Girish Menon said.
The TV industry reported a slower growth in 2016 at 8.5 per cent, mainly due to tepid growth of 7 per cent in subscription revenues and a lower than estimated 11 per cent growth in advertising revenues.
The evolution of free to air channels post the expansion of rural measurement in the television segment coupled with 4G rollout and aggressive tariff wars resulted in deeper media penetration in 2016, it said.
A strong performance of sports properties and increased spending for the launch of 4G by telecom operators helped alleviate some of the pressure, the report stated.
As per the report, the industry is expected to grow at a CAGR of 14.7 per cent over the next five years with advertising and subscription revenues projected to grow at 14.4 per cent and 14.8 per cent, respectively.
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