'Indian M&E industry's size to double at Rs 2 trn by 2019'

Driven by digital players, the media and entertainment industry is on course to grow at a compounded annual growth rate of 13.9 per cent by FY19 to Rs 1,96,400 crore from Rs 1,02,600 crore this fiscal, according to a KPMG report.
The growth of the digital media will be the fastest, while at the same the traditional media will be growing at a healthy pace. The television sector will continue to grow, thanks to digitisation. The advertising market will be driven by the emergence of e-commerce players as a significant new category, the report said.
"The media and entertainment sector is set to grow at a CAGR of 13.9 per cent by 2019 to touch Rs 1,96,400 crore from Rs 1,02,600 crore in 2014. This higher growth will be driven by the digital players," the report on the industry released at the Ficci-Frames here today said.

The number of TV households rose to 168 million in 2014, implying a penetration of 61 per cent, making it the world's largest television market after China but remains highly unstructured, the report noted.
Television advertising bounced back significantly, and the sector is estimated to grow at Rs 47,500 crore in 2014, and is expected to grow at a CAGR of 15.6 per cent to reach Rs 97,500 crore by 2019.
Subscription revenue growth at an annualised growth rate of 16 per cent is expected to outpace advertising revenue which is projected to have an annualized revenue growth of 14 per cent, on account of improving monetisation due to digitisation.

However, the report noted that though digitasation has touched more than 50 per cent households, implementation challenges remain in improving addressability and monetisation. As a result, there was no real impact from digitisation on sharing of subscription revenues among the different participants or carriage fees in 2014, the report noted.

The growth in popularity of digital media exhibited the sharpest growth in 2014 with digital advertising growing at 44.5 per cent over 2013. However, digital ad spends are still a long way from global average, said the report.
Overall advertising revenues in 2014 grew at a growth rate of 14.2 per cent over 2013 to Rs 41,400 crore of which print at 43 per cent and television at 37 per cent captured the lion's share," the report noted.

It was also an important year for the radio industry as the government started proceedings on phase III auctions. The government has given a nod to the partial auctions for 135 channels in 69 cities, and the final auctions are anticipated in the latter half of 2015, the report said.