The entertainment and media industry in India is expected to cross the mark of Rs 2.27 lakh crore ($37.2 billion) by 2018, growing at a CAGR of 15 per cent between 2013 and 2018, a latest report released by CII-PwC showed. The overall sector was estimated to be about Rs 1.12 lakh crore ($18.3 billion) and grew by 19 per cent over the previous year.
The TV segment continued its strong growth momentum led by subscription revenues, representing a year-on-year growth of about 15 per cent. The TV and print segment together are expected to be the largest contributors to the advertising pie in 2018 as well.
Internet access, which has overtaken the print segment as the second-largest segment, and internet advertising, have been the fastest growing segments with annual growth rates of 47 per cent and 26 per cent, respectively.
Internet advertising will emerge the third-largest segment, with a share of about 16 per cent in the total entertainment and media advertising pie, the report said.
“Clearly, the future lies in digital media as the internet segment is leading the growth in India.” Chandrajit Banerjee, Director General, Confederation of Indian Industry, said in the report.
Advertising revenues are expected to rise at a CAGR of 13 per cent and cross Rs 60,000 crore ($9.83 billion) by 2018 from Rs 35,000 crore ($5.73 billion).
On the other side, the film industry was estimated at Rs 12,600 crore ($2.06 billion) in 2013 is projected to grow steadily at a CAGR of 12 per cent, on the back of higher domestic and overseas box-office collections as well as cable and satellite rights.
The gaming sector is also fast emerging as a promising revenue source for the industry, with the rapidly increasing adoption of smartphones and tablets, it added.
“Efforts by industry players as well as support from the government are expected to provide a major boost to the gaming sector, which is still in its infancy,” the report said.
Out-of-home advertising is expected to decline in terms of revenue contributions with its share dropping to 1 per cent in 2018. Also, music segment is expected to remain at 1 per cent revenue share between 2013 and 2018, the report added.
(Edited by Joby Puthuparampil Johnson)
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