08-Jan-2018

THE BROADCAST INDUSTRY GROWTH STORY - GROWING RURAL DEMAND, INCREASING DIGITAL ACCESS & CONSUMPTION AND THE CULMINATION OF THE DIGITIZATION PROCESS OF TELEVISION DISTRIBUTION TO PAVE THE WAY FORWARD.

The long-term factors driving the future growth in the Media & Entertainment industry in India are expected to remain positive; with growing rural demand, increasing digital access and consumption, and the expected culmination of the digitization process of television distribution over the next two to three years.

The Indian M&E industry is projected to grow at a faster pace of 14 per cent over the period 2016-2021, with advertising revenues expected to increase at a CAGR of 15.3 per cent during the same period.

Television is expected to grow at a CAGR of 14.7 per cent over the next five years. The long-term forecast for the television segment remains robust due to strong economic fundamentals and rising domestic consumption coupled with the delayed, but inevitable, completion of digitization.

The Films segment is forecasted to grow at a CAGR of 7.7 per cent, as the revenue streams broaden, driven by the growing depth of regional content, expansion in overseas markets and higher contribution of digital revenue streams.

Digital advertising is expected to grow at a CAGR of 21 per cent to reach INR 294.5 billion by 2021, contributing 27.3 per cent to the total advertising revenues by that point. As digital infrastructure continues to develop and data costs are driven down, digital consumption is likely to become more frequent and more mainstream.

Animation and VFX is expected to grow at a CAGR or 17.2 per cent over 2016-2021 largely led by the continued growth in outsourced services and the swelling use of animation and VFX services in the domestic television and film space, respectively.

Radio is expected to grow the fastest amongst the traditional sectors at a CAGR of 16.1 per cent, with operationalization of new stations in both existing and new cities, introduction of new genres and radio transitioning into a reach medium. The radio industry in India is expected to grow from INR 2300 crores in 2015 to anywhere between INR 5000 – 6000 crores by 2020.

Source: FICCI-KPMG Report 2017



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