M&E sector to touch Rs 91,700 crore in 2013: FICCI-KPMG study

 FICCI and KPMG have yet again joined hands together and released the highlights of the media and entertainment sector. The first report of FICCI FRAMES was released way back in 2000 by the erstwhile consulting firm Arthur Andersen. The report which was the first ever for the Media and Entertainment sector then was extremely optimistic and had pegged the industry size at INR 150 billion and claimed that this number would swell to INR 600 billion by 2005.   

Now we are in 2013..lets check what’s the reality? Lets us take a look at some highlights from the report

To begin with, the latest report says that the Indian M&E industry grew from INR 728 billion (rs 72,800 crore) to INR 820 billion (Rs 82,000 crore) in 2012, registering an overall growth of 12.6 percent. The sector is estimated to achieve a growth of 11.8 per cent in this current year to touch INR 917 billion (Rs 91,700 crore) all on the back of complete digitization, continued growth in regional media, upcoming elections, continued strength in the film sector and fast increasing new media businesses.

Further, the sector is projected to grow at a healthy CAGR of 15.2 percent to reach INR 1661 billion by 2017, says the FICCI – KPMG Media & Entertainment 2013.

When one glances through the highlights of the report nothing has changed much. TV still is a dominant medium, revenue models are still advertising dependent but soon that could change with complete digitization coming into play.

Infact, some channels are already seeing a significant amount of revenues coming from subscriptions. This is only going to get better. With the metros saturating, regional markets hold great potential and are key centres of growth, live events are also seeing a rise and proving to be fruitful for advertisers as these events are attracting widespread audiences across the country.

The film sector is doing well and in 2012 saw a growth of 21 per cent over 2011 to record revnues to the tune of Rs 11240 crore. Digital advertising which until few years ago was considered not so great medium has also seen a good growth in 2012. The medium has seen growth in revenues from Rs 1540 crore to Rs 2170 crore, a 41 per cent rise over 2011.

The 14^th edition of the FICCI-KPMG Media and Entertainment Report  will be released at Frames, a global convention of the media and entertainment industry starting from March 12^th to 14^th in Mumbai.