New Delhi: As Internet consumption in India rises rapidly, the share of sectors such as print and films in the media and entertainment industry’s overall revenue is set to decline, says a report jointly published by PricewaterhouseCoopers Pvt. Ltd (PwC) and the Confederation of Indian Industry (CII).
Print’s share of revenue in the total advertising pie is likely to decrease from 22% in 2012 to 15% in 2017 and that for films from 12% to 9% in the same period. In 2012, print contributed Rs21,200 crore to the industry’s revenue and films Rs11,200 crore.
“While the share of print is declining in the overall media pie, it is still growing at 9% a year which is significantly higher as compared to other global markets where the growth is negative,” said Smita Jha, leader of the entertainment and media practice at PricewaterhouseCoopers Pvt Ltd.
Overall, the Indian media and entertainment industry is on the cusp of a strong phase of growth, backed by rising consumer payments and advertising revenue across all sectors, said the report. It is expected to grow at 18% between 2012-2017 to reach total revenue of Rs2,24,500 crore from Rs96,500 crore in 2012.
Television will continue to expand at an expected growth rate of 18% between 2012-2017, driven by growth in both subscription payments and advertising revenues.
“A large part of TV revenue will come from subscription driven by an increase in volumes,” said Jha.
The television sector’s share of advertising revenue grew 13% last year from Rs34,000 crore in 2011 to Rs38,300 crore in 2012.
The overall split of revenue between advertising and consumer payments is expected to undergo a significant change over 2012-2017 as consumers start paying more for media content and services.
Advertising revenue for the whole industry is expected to decline from 33% in 2012 to 28% in 2017, while the share of consumer payments is expected to increase from 67% in 2012 to 72% in 2017, as per the report.
“The revenue from consumers accessing content tailored to their needs would drive growth,” said Jha.
Total advertising revenue is expected to increase from Rs32,200 crore in 2012 to Rs61,900 crore in 2017.
Sectors like Internet access (revenue spent by consumers to get Internet connections), Internet advertising, gaming and music will continue on a high growth trajectory. These sectors will benefit from the rising adoption of wired and mobile Internet and broadband access in India.
Internet access contributed Rs17,100 crore to overall media revenue for 2012 and is expected to touch Rs63,100 crore by 2017 at an expected growth rate of 30%. Overall Internet advertising revenue (wired and mobile) is estimated to reach Rs8,400 crore by 2017 at a similar growth rate.