MUMBAI: India’s media and entertainment industry is forecast to touch $34.8 billion by 2021, logging a CAGR of 11.8 per cent in the preceding five years, paced by significant growth in digital platforms that would increasingly draw more eyeballs than competing outreach vehicles.
According to EY’s report on the industry, released at the FICCI-IIFA Global Business Forum in New York, growth in digital media businesses would far outpace TV, print, radio or music concerts at 26 per cent CAGR between 2016 and 2021.
With an economy of $2.3 trillion and expanding at a rate north of 7 per cent, India remains an under-advertised country, compared with OECD economies. Total advertising spends across all segments in India, which stood at $8.18 billion in 2016, will double to $16.7 billion in 2020.
While print media and TV together accounted for 76.2 per cent of the total revenue from advertising in 2016, mobile advertising has emerged as the third largest advertising medium.
The report, titled ‘Digital Inflection Point: Indian Media and Entertainment’, says organised events would expand at 16 per cent CAGR, radio at 14 per cent, TV at 11 per cent, music at 11 per cent, films at 10 per cent, and print media at 7 per cent.
To be sure, TV and print have significantly large revenues currently: TV (46 per cent) and print (23 per cent) together generate more than two-thirds of the industry’s total revenue.
“The Indian M&E sector is at a digital crossroads today. Every segment of the industry, including print, TV, radio, film, experiential marketing and OTT, is being impacted by digitisation, and is showing growth, consolidation and innovation,” said Ashish Pherwani, partner – Advisory, Media and Entertainment, at EY.
“It presents an excellent opportunity for companies looking at establishing and expanding their presence in the country, and making the most of the India digital growth story.”
Together with films, of which India is the biggest producer by the number of titles annually, TV and print make up four-fifths of the current industry revenue.
Digital (6 per cent), organised events (4 per cent), radio (2 per cent), music (1 per cent), and other segments (7 per cent) constitute the remaining 20 per cent of the market. With the faster growth of digital media, these shares would change by 2021.