If a report by EY has to be believed, India’s media and entertainment industry is estimated to stroke $34.8 billion by 2021, logging a CAGR of 11.8 per cent in the coming five years, speed by major growth in digital platforms that would progressively sketch additional eyeballs than rival outreach vehicles.
According to a report by EY on the industry, released at the FICCI-IIFA Global Business Forum in New York, growth in digital media businesses would far outpace TV, print, radio or music concerts at 26 per cent CAGR between 2016 and 2021.
India remains an under-advertised country, compared with OECD economies with an economy of $2.3 trillion and expanding at a rate north of 7 per cent, Total advertising use crosswise all section in India, which stood at $8.18 billion in 2016, will twice over to $16.7 billion in 2020.
While the print media and TV jointly accounted for 76.2 per cent of the total profits from advertising in 2016, mobile advertising has appeared as the third largest promotion medium.
The report, titled ‘Digital Inflection Point: Indian Media and Entertainment’, says that the organized events would get bigger at 16 per cent CAGR, radio at 14 per cent, TV at 11 per cent, music at 11 per cent, films at 10 per cent, and print media at 7 per cent.
However, TV and print have considerably large revenues currently: TV (46 per cent) and print (23 per cent) jointly make more than two-thirds of the industry’s total revenue.
“The Indian M&E sector is at a digital crossroads today. Every segment of the industry, including print, TV, radio, film, experiential marketing and OTT, is being impacted by digitisation, and is showing growth, consolidation and innovation,” said Ashish Pherwani, partner – Advisory, Media and Entertainment, at EY.
“It presents an excellent opportunity for companies looking at establishing and expanding their presence in the country, and making the most of the India digital growth story.”
Jointly with films of which India is the major producer by the number of titles annually, TV and print make up four-fifths of the present industry revenue.