M&E to reach $37.6 bn by 2016: CII-PwC report

30 Oct,2012

By Ananya Saha

 

The Indian M&E industry, with revenues of about 805 billion INR (17.2 billion USD) in 2011, is set to grow robustly over the next few years on the back of steady macro-economic growth, rising spending power and positive demographic indicators. The industry revenues are expected to reach 1,764 billion INR (37.6 billion USD) by 2016, with a CAGR of about 17% from 2012 to 2016, according to India Entertainment and Media Outlook 2012.

 

According to the study, which was released by CII and PwC during the Media and Entertainment Summit 2012, the television and print segments continue to be the largest contributors to the industry, accounting for 66% of the total revenue. Internet access contributed 14%, up from 11% in 2010. However, the contribution from the print and film segments have reduced marginally, as year-on-year growth rates have been lower than the industry average. The internet access and gaming segments have been the fastest growing, with annual growth rates of 57% and 33%, respectively

 

The report further lists that the Indian E&M industry has been one of the fastest growing, followed by countries such as China, Russia and Brazil. Going forward, the industry is expected to grow at a CAGR of 17% between 2012 and 2016, to reach a size of 1,764 billion INR. Internet access, advertising and gaming are projected to be the fastest growing avenues, each growing at a CAGR higher than 20%. The revenue from advertising is expected to grow at a CAGR of 13.4% to reach INR 525 billion in 2016, significantly up from INR 279 billion in 2011.

 

The television segment is expected to retain its position as the largest E&M segment in the country, with an estimated CAGR of 15% till 2016. Given the high penetration of mobile internet in the country, robust growth has been projected in internet access till 2016 (given the current under-penetration), which will overtake the print sector by 2013, in terms of industry revenues, and become the second-largest segment in the Indian E&M industry. The print segment is expected to grow at 9% for the next five years, and claim 17% of market share by 2017.

 

The report recommends that given the high potential growth, the industry should focus on collaboration and innovation to achieve the target numbers.

 

 

 

 

 

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