M&E sectors to touch Rs 2,24,500 cr by 2017: CII-PwC study

According to CII-PwC’s report titled ‘India Entertainment and Media Outlook 2013’, the Media and Entertainment (M&E) sector in India is expected to grow steadily over the next five years. According to the report due for release at a CII Summit on 13 September, the segments are expected to top Rs 2,24,500 crore in revenue, growing at a CAGR of 18 per cent from 2012 to 2017.

The size of the Indian M&E sector increased from about Rs 80,500 crore in 2011 to almost Rs 96,500 crore in 2012 representing a growth of 20 per cent, according to the report.

Chandrajit Banerjee, director general, CII, said, “This growth is driven by the introduction of cable TV digitisation, continued growth of regional media, continued strength of the filmed entertainment sector, fast increasing new media businesses and transparency. We believe that innovation - faster, better, more efficient, thinking out of the box (and within the box) - would be one of the game changers in this space.”

Smita Jha, leader entertainment and media practice, PwC India, added, "With increasing proliferation of digital platforms, industry participants will need to invest in constant innovation that encompasses products and services, business and operating models and most importantly, consumer experience and engagement. Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services."

A CII statement revealed the following highlights from the report:

India’s television market grew at 13 per cent on revenue from Rs 34,000 crore in 2011 to Rs 38,300 crore in 2012.

Filmed entertainment grew 17 per cent from Rs 9,600 crore in 2011 to Rs 11,200 crore in 2012.
Print sector revenues are expected to increase at over 9 per cent CAGR to reach Rs 33,100 crore in 2017 from Rs 21,200 crore in 2012.

Year-on-year, sectors such as internet access (30 per cent), internet advertising (29 per cent), gaming (19 per cent), and music (15 per cent) are expected to continue on their growth trajectory.
The radio sector is expected to receive a fillip with the successful conclusion of Phase III license auctions and it is expected to grow at a CAGR of about 16 per cent.

The study also states that the television and print sectors dominate the industry with about 40 per cent and 22 per cent contribution to industry revenues respectively in 2012. Internet access commands about 18 per cent share and films 12 per cent of industry revenues.

In 2017, television will continue to lead the industry in terms of revenue contribution with 39 per cent share, followed by internet access with 28 per cent share. The study states that the share of print and films are likely to decrease 15 per cent and 9 per cent respectively in 2017.