Media and entertainment industry in 2017 grew by almost 13% to reach INR 1.5 trillion: FICCI - EY report 2018
Mumbai, Mar 5 (IBNS): The Indian Media and Entertainment (M&E) sector reached almost INR1.5 trillion (US$22.7 billion) in 2017, a growth of around 13% over 2016. With its current trajectory, it is expect to cross INR2 trillion (US$31 billion) by 2020, at a CAGR of 11.6%.
The digital segment led growth, demonstrating that advertising budgets are in line with the changing content consumption patterns. The FICC-EY report 'Re-imagining India' s M&E sector,' launched at FICCI Frames 2018 in Mumbai, captures key insights from the exciting and fast growing Indian M&E sector.
The M&E sector continues to grow at a rate faster than the GDP growth rate, reflecting the growing disposable income led by stable economic growth and changing demographics.
The report states that subscription growth outpaced advertising growth in 2017 but advertising will continue to grow till 2020n led by digital advertising.
The report estimates that approximately 1.5 million consumers in India today are digital only and would not normally use traditional media. It is expected that this customer base will to grow to ~4 million by 2020 generating significant digital subscription revenues of approximately 20 billion.
Going forward, micropayments, enabled through the Unified Payment Interface (UPI) and Bharat Interface for Money (BHIM) platforms developed by the National Payments Corporation of India (NPCI) will further accelerate subscription revenues for entertainment content.
FICCI President, Rashesh Shah said that the Indian Media and Entertainment (M&E) industry has been hitting new milestones and has stepped onto a matured phase at a growth rate of 11.6% CAGR.
"The need is to promote India as an entertainment hub to the world, facilitate policy change for the betterment of the Indian M&E industry as well as create and encourage platform for Business-to-Business interface and dialogue," added Mr. Shah.
Farokh Balsara, Partner and M&E Leader, EY India, stated, "Indian M&E sector reached INR1.5 trillion in 2017 led by digital. With digital subscribers expected to reach 20 million by 2020, has Indian M&E reached its digital tipping point? We now need to re-imagin the future of Indian M&E sector."
Ashish Pherwani, Partner and M&E Advisor Leader, EY India, "Growth in 2017 was led by the digital, film & animation & VFX segments. We expect sectors like digital and gaming to grow between 2 to 3 times by 2020."
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