The Indian media and entertainment sector is expected to grow at 14 per cent in the next five years but it will be slower in 2017 due to demonetisation and GST related uncertainties, according to a FICCI-KPMG report.
Advertising revenue of the industry is anticipated to increase at a CAGR of 15.3 per cent in the next five years, said the joint report by FICCI and KPMG.
The 'Media and Entertainment Industry Report 2017' said the industry grew at 9.1 per cent last year "despite demonetisation shaving off 150-250 basis points in terms of growth across all sub-segments".
The digital advertising industry is projected to be around Rs 29,450 crore by 2021 growing at a CAGR of 31 per cent, contributing 27.3 per cent to the total advertising revenues, the report said.
"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 two to three years," KPMG Media and Entertainment Director in India Girish Menon said.
FICCI M&E Committee Chairman Uday Shankar said building solid infrastructure and continued government support will help the industry reach the tremendous potential it holds for employment and creating socio-economic value for the country.
The television medium is expected to grow at a CAGR of 14.7 per cent over the next five years as advertising revenues will continue to show a robust growth due to strong economic fundamentals, it added.
The report noted that the print industry is likely to grow at 7.3 per cent driven by continued growth in readership in vernacular markets and advertisers' confidence in the medium.
Films are expected to grow at 7.7 per cent CAGR due to increase of depth in regional content and rise in acquisitions of digital content by over-the-top platforms, the report said.
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