Over the next five years, the media and entertainment industry in India is projected to grow at 13% to touch Rs1.09 trillion by 2014, according to a report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and KPMG, marking a recovery from last year’s slowdown. The study, released at Ficci’s annual media and entertainment conference Frames in Mumbai on Tuesday, says the television industry is expected to expand 15% to touch almost Rs52,100 crore in 2014, with growth driven by an increase in subscription and advertising revenue. Print, meanwhile, is projected to grow 9% over the next five years to reach Rs26,900 crore by 2014, after last year’s marginal 2% increase.
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Television will be advertising’s mainstay. It “covers over 50% of the population while print reaches only 30%”, said Rajesh Jain, executive director at KPMG and head of its media and entertainment practice. “Also, growth in television is led by fragmentation and the entry of new players. For instance, the entry of television channel Star Jalsa expanded the Bengali market by 30%.” Advertising is also being diverted into fresh avenues. “DTH (direct to home) has over 16 million subscribers now, Internet is growing in excess of 29% and we have 4.7 million users of Facebook in India alone,” Jain said. “All this is ushering in a huge growth in ad spends.” The film industry will do better with a 9% growth rate over the next five years against the 5% growth of the last three years. The report projects 16% expansion in the radio and music industries. Radio reforms are expected to improve profitability and stimulate foreign investment.
Graphics by Ahmed Raza Khan / Mint