Indian M&E industry to grow at 13% over 5 years to Rs 1091 billion

MUMBAI: The media and entertainment (M&E) industry is slated to grow at a CAGR of 13 per cent to touch Rs 1091 billion by 2014 as per the latest FICCI & KPMG report.

The M&E industry stood at Rs 587 billion in 2009, a growth of 1.4 percent over the previous year. In 2010, a growth of 11.2 per cent is expected.

The estimated 13 per cent growth rate per annum for the sector for next five years will be driven on the back of factors like favorable demographics, expected recovery in the GDP growth rate, strong long term fundamentals of the Indian economy, expected rise in advertising to GDP ratio compared to developed economies and increasing media penetration.

Factors like Digitisation, Regionalisation, Convergence of new media etc are some of the trends in the industry and are expected to drive growth going forward.

Television:

The industry is estimated to have reached a size of Rs 257 billion, a growth of 6.8 percent over 2008. The television industry is projected to grow at the rate of 15 per cent over 2010-14 to touch Rs 521 billion in 2014.

Filmed Entertainment:

The filmed entertainment sector saw a de-growth of 14 per cent to stand at Rs 89 billion in 2009. This was primarily due the three month impasse between the multiplexes and the producers last year coupled with poor content being churned out. The industry is expected to grow at a rate of nine per cent over the next five years, to stand at Rs 137 billion by 2014.

Print Media:

The Indian Print Media industry is estimated to have shown a very moderate growth of 2 percent in 2009 and reached around Rs 175 billion. Ad revenues saw a decline. The industry is projected to grow at a CAGR of 9 percent over the next five years and reach around Rs 269 billion in size by 2014.

Radio:

Radio industry is estimated to have grown at a CAGR of 9 percent over 2006-09. It is estimated to have reached a size of Rs 7.8 billion by end of 2009, a decline of 0.3 percent over the previous year. It is expected to grow at a CAGR of 16 percent over 2010-14 and reach a size of Rs 16.4 billion by 2014.

Music:

The size of the Indian music industry was estimated at around Rs 8.3 billion in 2009, up from Rs 7.3 billion in 2008, implying a growth of 14 percent during the period. Overall the music industry is expected to grow at a CAGR of 16% over 2010-14 to reach Rs 17.2 billion.

Out of Home (OOH):

OOH media has grown at a CAGR of 5 percent over the past 3 years, and is estimated to have reached Rs 13.7 billion in size in 2009, a de-growth of 15 percent over 2008. It is projected to grow at a compounded rate of 12 percent over the next 5 years and reach a size of around Rs 24.1 billion by 2014.

Animation:

The Animation & VFX segment in 2009 registered a growth of 13.6 percent over 2008. The industry is expected to grow at a CAGR of 18.7 percent in the coming years to reach Rs 46.6 billion by 2014. This growth will be triggered by the increased consumption of animated content, focus on IP creation and growth of 3D formats.

Gaming:

Gaming is expected to be the fastest growing sector in the M&E industry. While the sector has shown a 22 percent growth in 2009, it is expected to grow at a CAGR of 32 percent in the next 5 years to reach Rs 32 billion by 2014.

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