Indian M&E grew 11%, to accelerate: KPMG

The Indian media and entertainment (M&E) industry grew by 11 per cent in 2010 to Rs 65,200 crore, according to a report by KPMG and business chamber Ficci.

The report suggests the rate of expansion will accelerate and by 2015, the business will be worth Rs 1,27,500 crore. That translates into a compounded average growth rate (CAGR) of 14 per cent over five years, compared to the 10 per cent CAGR in the five years to 2009.

“The resurgence in advertising, growth in subscription revenues, thrust on digitisation, and emerging avenues for content monetisation have been the key growth drivers for industry in 2010,” said Rajesh Jain , head of media and entertainment, KPMG.

The industry in 2010 reported a growth across all sectors other than film. Its ad spends grew 17 per cent year-on-year to Rs 26,600 crore. Revenue from television advertising and subscription are expected to touch Rs 21,400 crore and Rs 41,600 crore, respectively, by 2015.

Contrary to Western markets, the print media is expected to grow at a CAGR of 10 per cent to Rs 31,000 crore, mainly buoyed by growth in regional media. Radio is expected to grow at 20 per cent per annum. The film industry is going to grow to Rs 13,200 crore by 2015 from Rs 8,300 crore in 2010.

While television and print will continue to dominate, sectors such as gaming, digital advertising and animation/visual effects are likely to grow at a faster rate. These changes are mainly due to the launch of third-generation telecom services, new gaming platforms and innovation in technological devices such as tablets and smartphones.

“Businesses are now beginning to understand the power of this tool and integrating it into their core marketing plan to reach out to their target audience,” said Jehil Thakkar, executive director, M&E, KPMG.