Continued boom forecast for India's media & entertainment sector

BCG-CII report says sector likely to expand nearly 6-fold in near future, with vast demand, growing market and tech boom

The country's media and entertainment sector, presently valued at close to $18 billion, could reach $100 bn in the near future, says a recent report from The Boston Consulting Group and the Confederation of Indian Industry.

The sector has grown around 10 per cent annually for five years. India has the third largest television audience in the world and the second largest print circulation. And, produces the highest number of films worldwide. It employs nearly five million, directly and indirectly. At 1.7 per cent of the country's gross domestic product (GDP), it retains vast capability to absorb new products and businesses, unlike in the developed world where many of its segments struggle.

The sector is yet an underperforming one, says the report. Advertising, for instance, is 0.3 per cent of GDP; the global average is 0.6 per cent. And, falls far behind the immediately larger market of China, which has reached a 'billion media hours a day'.

The report urges businesses to leverage new consumer and digital trends, pointing to changing patterns of consumption, advertising and operations.

Important among which, it says, is to shift channels of media distribution from conventional TV and movie theatres to the 250-odd million digital screens (smartphones, tablets, laptops and personal computers) brought about by the telecom revolution. This number is projected to reach 600 mn by 2020 -- every second Indian will potentially have a personal media consumption device.

The print industry, says the report, can rise to Rs 39,500 crore by 2020 but only if it can scale up digital operations, barring which a yearly contraction of five per cent is forecast. Broadcast news, on the other hand, dominates both access and viewership. It has grown by 10-plus per cent in five years, currently at Rs 60,000 crore. Subscription revenues grew 10 per cent yearly; advertising income rose nine per cent.

Currently, Indians spend nearly 21 hours a week in watching live television, significantly less than the global average. Among segments, films stand out, with relatively brighter prospects. Currently estimated at Rs 13,000 crore and growing at 13 per cent annually over the past five years. This is expected to hold, leading to 24,000 crore in 2020.