FICCI- Deloitte report – ‘Media & Entertainment in South India – the Digital March’ pegs Southern Media & Entertainment (M&E) industry growth at 16% CAGR. Media and entertainment industry is expected to reach INR 43,600 crore by FY 2017 against the current INR 23,900 crore in FY 2013. Industry’s growth will be mainly driven by popularity of vernacular content, rapid digitization and the evolving ecosystem, which is, media industry’s effort to expand their presence. Besides regional media players, southern media and entertainment industry continues to attract national players to explore the growing market. The market is dominated by television (56%), followed by print (28%) and films (11%).
Southern India Television market
Television constitutes the largest segment of the southern media and entertainment industry and is currently estimated at INR 13,470 crore, accounting for the largest share of the overall market at 56%. The medium is expected to grow at a CAGR of 20% over the next four years due to benefits of digitization being realized.
Print industry in South India
Print industry in south India at INR 6,680 crore is the second largest segment accounting for 28% of the overall market in FY 2013. As the advertising revenue from vernacular print in the southern India is estimated to grow at twice the rate of growth in English media, media players are launching vernacular dailies.
New Media and Radio
Sectors such as New Media and Radio, though smaller than other mediums, are expected to grow at rates higher than the industry average, given their increasing power of engagement. Radio, with the upcoming Phase III auction, and New Media, propelled by the consumer’s demand to access content ‘anytime, anywhere’, are expected to grow at a CAGR of 19% and 23% respectively, over the next four years. Increasing presence of radio on the digital medium is also enabling it to reach listeners across the globe. With Phase III of radio frequency auctions, players are gearing up to further their reach and strengthen engagement with the consumers.
This shift of users to web and mobile platforms for media consumption is expected to have a direct impact on growth of digital advertising. The success of New Media not only depends on accessibility and devices, but also on the development of a viable online eco-system. New media is also attracting the print and the television industry through online monetization opportunities online in form of mobile apps etc. Consequently, with players identifying innovative ways to reach out to their readers, Print industry is also expected to see a steady CAGR of 8% till FY 2017.
….The opportunity will lie in tapping the growth potential of the market through expansion and deeper penetration while simultaneously building additional capabilities to explore alternate sources of revenues….” – Neeraj Jain, Senior Director, Deloitte in India.
South India Film industry
Southern India churns out more films than the bollywood (predominantly Hindi films in North India). Film industry at INR 2,680 Crore is the third largest segment (11%) in southern media and entertainment industry landscape. Southern film industry is also continuously adopting technology across the value chain – scouting talent through social media, adopting newer film making technologies in terms of sound and filming, distributing and exhibiting films digitally as well as embracing e-ticketing platforms. The industry is expected to see a healthy CAGR of 12% over the next four years.
Full report can be accessed on FICCI’s Slideshare