MUMBAI: The size of India’s media and entertainment industry crossed the Rs1 trillion mark in 2014 and is set to grow at 13.9 per cent annually till 2020, even as digital advertising revenues are set to expand 30.2 per cent during the period, says a Ficci-KPMG report.
“The growth in popularity of digital media continued to surge in 2014 with a significant growth in digital advertising of 44.5 percent over 2013,” says the report, entitled “Shooting for the Stars”, released at the annual Ficci Frames conclave here on media and entertainment industry. “Critical tax and regulatory interventions were key for enabling growth, “ it says. The study predicts the following compounded annual growth for the various constituents of India’s media and entertainment sector: TV 15.5 percent, print 8 percent, films 10 percent, radio 18.1 percent, music 14 percent, animation 16.3 percent and gaming 14.3 percent.
The study forecasts the overall industry to grow to Rs.1,964 billion from Rs1,026 billion now.
Speaking about 2014, the report says it was also a year of deals. “Deal activity in the media and entertainment sector was on an uptrend in 2014, recording 61 transactions versus 26 transactions in 2013. Deal values increased from $224 million in 2013 to $2,380 million in 2014.”
In sports, it says, cricket remains the most popular. “But the success of the IPL (Indian Premier League) has led to the creation of several other league-format sporting events,” it says listing sports such as hockey, football and kabaddi, which had a viewership of 66 million people.
“The media and entertainment sector in India is poised for exciting times, powered by the growth in digital media consumption, and the supporting environment created by regulatory reforms”, it says, listing fragmented audience and monetisation as challenges to the digital ecosystem.