Mumbai April 1 2016: The media and entertainment (M&E) industry in India is seen to grow at a a compound annual growth rate CAGR of 14.3 per cent to Rs 2260 billion by 2020, Rs 1,158 billion in 2015.
This is driven by led by advertising revenue which is expected to grow to Rs 994 billion at a CAGR of 15.9 per cent. Digital advertising continued to be the fastest growing medium, with a 38.2 percent growth over 2014. Digital advertising continued its strong run with 38.2 per cent growth over 2014 It is likely to reach Rs 255 billion and contribute 25.7 per cent of total advertising revenues. The main stimulus is the growing Internet user base and data usage plus big spend allocation by marketers. These are the marquee findings in the FICCI-KPMG Media and Entertainment industry report 2016.
Says Jehil Thakkar, partner and head of media and entertainment, KPMG in India: "With the wide rollout of 4G finally underway, coupled with the Digital India initiative, the future of digital advertising is very bright. with the increased penetration of smartphones, consumers will seek content beyond the television screen."
A key highlightsof the year was implementation of a viewership measurement system by Broadcast Audience Research Council (BARC) with the impact on budget allocations for advertising among channels only just starting to change. The e-commerce industry is expected to continue to advertise across mediums, moving from its earlier focus on digital platforms with an increased focus on regional markets.
Here is a link to find a PDF of the full 296 page report, which was released March 30 on the opening day of the annual FICCI 'Frames" media and entertainment summit.