Industry to grow past 2.35 trn mark by 2021
Mumbai: The media and entertainment (M&E) industry is expected to cross the Rs 2.35-lakh-crore mark (around...
Mumbai: The media and entertainment (M&E) industry is expected to cross the Rs 2.35-lakh-crore mark (around $33.6 billion) by 2021, clipping at 11.6 per cent annually, says a report. According to a Ficci-EY report, the industry stood at Rs 1.67 lakh crore ($23.9 billion) in 2018, growing 13.4 per cent over 2017.
"While TV will remain the largest segment, growth is expected to come from digital that will overtake filmed entertainment in 2019 and the print by 2021," says the report released at the annual industry summit Ficci Frames on Tuesday.
Of the 570 million Internet users, around 2.5 million use only digital media and eschew the traditional media, according to the report which forecasts that this digital-only customer base is slated to double to 5 million by 2021.
"Digital consumption will grow, and monetisation avenues will see innovation to meet customer demands and one big growth driver will be OTT players on the back of telcos bundling their offerings with data. Already advertising growth has outpaced subscription growth and is expected to comprise 52 percent of the total pie by 2021," says the report.
TV industry grew from Rs 66,000 crore to Rs 74,000 crore in 2018, a growth of 12 per cent, of which advertising grew 14 per cent to Rs 30,500 crore and subscription grew 11 per cent to Rs 43,500 crore. Television viewing households rose to 197 million, a 7.5 per cent rise over 2016. Television can reach Rs 95,500 crore by 2021, with advertising growing at 10 per cent and subscription at 8 per cent, it said.
The print, though is the second largest medium growing a tepid 0.7 per cent, has reached Rs 30,550 crore in 2018, of this ad revenue was Rs 21,700 crore and subscription revenue was Rs 8,830 crore, up a marginal 1.2 per cent. Significantly, newspaper advertising degrew 1 per cent, and magazine advertising fell 10 per cent in the year. "The fall in advertising is due to both lower volumes as well as pressure on effective rates.
Hindi dailies continued to lead with 37 per cent of total ad volume, followed by English at 25 per cent. Rising newsprint prices and the rupee fall put pressure on their margins," it said. Regional advertising outpaced national growth on the back of national brands spending more to develop non-metro markets where GST created a level playing field for both.
The report notes that broadcasters have started selling ads combined across OTT and linear platforms to enable better monetisation of marquee properties and increased utilisation of digital inventory. The impact of the Trai tariff order can have implications on total viewership, free television uptake, channel rates and ad revenue.
However, 2019 promises further growth due to the elections and the cricket world cup. The year also saw a 26 per cent growth in digital news consumers over 2017 when 222 million people consumed news online.