You are here: Home » Companies » News
Business Standard

Entertainment industry.grows 10.9% to Rs 1,436 billion.in 2017-18

The industry did feel the lingering effects of demonetisation, the implementation of the GST and the Real Estate (Regulation and Development) Act, slowing the pace of growth

Urvi Malvania 

TV to ride the media & entertainment boom

The KPMG Media and Entertainment Report 2018 reveals the industry inched closer to the Rs 1,500-billion mark in 2017-18 (FY18). Thanks to a rapidly growing digital user base, the industry clocked a growth of 10.9% in FY18, reaching Rs 1,436 billion. This had a positive impact on demand across sectors like films, digital advertising, animation and VFX, gaming, and music.

The industry did feel the lingering effects of demonetisation, the implementation of the goods and services tax (GST), and the Real Estate (Regulation and Development) Act (RERA), slowing the pace of growth, despite advertising growing at 11.5% year-on-year. The industry is expected to grow at a compound annual growth rate (CAGR) of 13.1% during FY18-23 period, to reach Rs 2,660.2 billion by FY23.

Entertainment

TELEVISION

TV had a somewhat subdued outing in FY18, with ad revenues facing headwinds. Subscription revenues took a hit. The sector grew at 10.3% to reach Rs 224 billion. It is expected to grow at a CAGR of 12.6%, on the back of growing TV penetration, strong ad demand, growth in domestic consumption, and major events supported by better distribution realisations.


Entertainment

PRINT: Print faced the same challenges as TV but the impact was more adverse, resulting in it growing at 3.4% in FY18 to reach Rs 318.9 billion. Hindi and regional newspapers led the growth (4.2 and 4.6 per cent, respectively), while English papers felt the maximum brunt, growing at 1.5%. The sector is likely to see muted growth at 5.9% CAGR due to sluggish growth in English papers and pressure from digital


Entertainment

CINEMA:

The sector grew at 9.6%, seeing resurgence after some sluggish years. The growth came from the regional language films (Tamil, Telugu, and Malayalam), as Bollywood box-office revenues remained flat. The segment is expected to remain resilient, with a 7.6% CAGR, on the back of strong demand from digital platforms and growing overseas revenues

Entertainment

DIGITAL ADVERTISING:

The segment continues to grow at an aggressive pace as digital infra in the country improves. The sector grew 35% in FY18 to reach Rs 116.3 billion, spurred by increased penetration of and inclusion of and adoption by non-urban users. Digital adoption will spearhead strong growth in at 30.2% CAGR to reach Rs 434.9 billion by FY23.

Entertainment

GAMING:

The growing penetration of smartphones, falling prices of data, and rising acceptance of digital payments contributed to growth in gaming sector revenues in FY18. The segment grew 35.1% in FY18 to Rs 43.8 billion. Mobile gaming contributed to 89% of gaming revenues in FY18, while 90% of used and tablets to play games online.



Entertainment

Entertainment

First Published: Thu, September 06 2018. 01:58 IST
RECOMMENDED FOR YOU