The media and entertainment industry in South India is expected to grow at a compound annual growth rate of (CAGR) of 14% to readh Rs 36,005 crore by the fiscal year 2015-16, from the current size of around Rs 21,190 crore, according to a new report.
The growth is driven by an evolving ecosystem and demand base and high technology adoption, even as there are concerns over the current economic turbulence which is bound to affect advertisers' spend on various media, said the report on South Indian Media and Entertainment Industry, by Deloitte Touche Tohmatsu India Pvt Ltd and Federation of Indian Chamber of Commerce and Industry (FICCI), which was released today during the Media and Entertainment Business Conclave (MEBC) 2012, organised by FICCI, here.
The market is dominated by television, which is at the size of around Rs 12,220 or around 58% out of the total market at present, followed by print industry at around Rs 6,265 crore with around 29% market share and film industry at Rs 2,340 crore with around Rs 11% market share. The market size for radio is around Rs 365 crore, which is 1.72% of the market size at present, but growing at the highest CAGR, of 22%.
Delivering his welcome address, actor Kamal Haasan, who is the chairman of MEBC, FICCI, said, "Film industry in South India has a major role in the film industry in the country. Around 65% of the number of films produced in India is from South India."
In the South Indian film industry, with corporates foraying into the entertainment business, cost management in big budget ventures is becoming a noticeable trend. However, given the pace of the activities in the film industry in the region, there is likely to be a considerable shortage of skilled resources. This could be addressed through methodically identifying the gaps and subsequent training needs, said the report. Collective initiatives from multiple stake holders across the industry value chain including efforts for a Media and Entertainment Skill Council (MESC) would help the industry to overcome this challenge, according to the report.
Among the South Indian States, Tamil Nadu has the largest market share, at around Rs 7,620 crore with around 36% of the total media and entertainment market in the region. Andhra Pradesh follows with around Rs 6,480 crore, which is 30% of the region's market, while Karnataka has around Rs 3,985 crore market occupying 19% of the region's total media and entertainment market. Kerala has around Rs 3,105 crore market, which is around 15% of the South India's market size, at present.
Speaking to Business Standard about the South Indian Media and Entertainment industry, Sandip Biswas, director, Deloitte, said, "With the television industry giving upto date news, the print media had to change its method of working. Now, both the print and television firms are coming in the same platform of some kind of application in mobiles and tablets, which again changes the entire industry scenario." He added that going forward, with the digitisation of television happens, the industry would see a consolidation where the players with strong hold in their domain would stand to gain.
"The South television industry will witness favourable changes as it continues to reinvent itself and explore newer horizons. With a rich catalogue of content, a captive customer base and a strong distribution network, it will attract an increasing number of advertisers and investors to drive future growth in this space," says the report.
The total TV advertisement revenue in South India is estimated to be Rs 3,610 crore in 2012, which is expected to grow at around 16% to Rs 6,540 crore in 2016. The total content revenue from television in South India are estimated to be around Rs 470 crore, in 2012, and it is expected to grow at 15% to reach Rs 830 crore by 2016, added the study.
Meanwhile, the film industry in South India is expected to grow from Rs 2,340 crore in 2012 to Rs 3,550 crore in 2016. In film industry, Tamil Nadu occupies the major share of the market size at present, with around Rs 1030 crore, while Andhra Pradesh has Rs 1020 crore film industry, Karnataka has Rs 140 crore and Kerala has around Rs 150 crore of the total South Indian film industry.