M&E industry registers 11 per cent growth in 2010: FICCI-KPMG

Advertising spends amounted to Rs 266 billion, registering a growth of 17 per cent, and accounted for 41 per cent of the overall industry size in 2010.

The Indian Media & Entertainment (M&E) industry has registered an 11 per cent growth in 2010 over 2009, to currently become a Rs 652 billion worth industry.

According to the latest FICCI-KPMG report, advertising spends amounted to Rs 266 billion, registering a growth of 17 per cent, and accounted for 41 per cent of the overall industry size.

Television saw a tremendous increase in the net DTH subscriber base, totalling 28 million at the end of 2010.

Backed by growth in advertising and subscription revenues, the television industry (then pegged at Rs 257 billion) grew by 15.5 per cent in 2010, wherein the growth in television advertising was 17 per cent. The television advertising market in 2010 stood at approximately Rs 88 billion.

The overall television industry is expected to grow at a CAGR of 16 per cent, to touch Rs 630 billion by 2015.

Television households are expected to surge to 156 million by 2015, while digitisation and addressability will go mainstream. Advertising and subscription revenues are expected to touch Rs 214 billion and Rs 416 billion, respectively. Television is expected to account for almost half of the Indian M&E industry revenues, and more than twice the size of print, the second largest media sector.

Contrary to most other markets globally that continue to witness an erosion of the print media industry, the sector in India witnessed a growth of 10 per cent in 2010, and is expected to continue to grow at a similar pace over the next five years and touch Rs 310 billion. Regional print is expected to grow at a higher rate of 12 per cent.

The study further notes that with increase in scale, expected changes in regulation from Phase III, and the music royalty structure, the radio industry is expected to grow at 20 per cent per annum, and become profitable. The industry, which stood at Rs 8 billion, saw a 24 per cent growth in 2010.

As far as the film industry is concerned, 2010 was a challenging year for the trade. However, with better content, increase in multiplexes, investment in research, and continued cost corrections, the industry is estimated to grow from Rs 83 billion, to Rs 132 billion by 2015.

With economic resurgence, the out-of-home industry advertising bounced back with a growth of 21 per cent in 2010, and is expected to reach a size of Rs 29.6 billion in 2015.

The growth in digital advertising, pegged at Rs 8 billion in 2009, was 33 per cent in 2010.

Overall, the industry is estimated to achieve a growth rate of 13 per cent in 2011, backed primarily by a positive industry sentiment and growing media consumption.

The overall industry is expected to witness a 14 per cent CAGR growth, thereby touching Rs 1,275 billion by 2015.

The report will be formally announced at the inaugural session of FICCI FRAMES 2011 on March 23, 2011.