India's media and entertainment (M&E) industry registered an overall growth of 12.6 per cent, from Rs 728 billion (US$ 11.74 billion) in 2011 to Rs 821 billion (US$ 13.24 billion) in 2012, according to a joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG.
India has a population of over 1.2 billion. The sheer numbers give the M&E industry in the country a tremendous opportunity for growth. Some time back, the thought of reaching and engaging with such a vast and diverse population seemed improbable. However, today, the industry is armed with digital technologies, state-of-the-art mobile devices, penetration of broadband and digital cinema, and a government that fully backs the sector.
Increasing digitisation along with higher internet usage has galvanised the sector over the last decade. The Internet has almost become the top media for entertainment for most of the people. Some recent statistics and developments related to the sector are discussed in the following segments.
The Indian print industry is the second largest in the world and is continuing to grow at a good rate. The segment has enjoyed a compound annual growth rate (CAGR) of 7 per cent in recent years. There are over 82,000 newspapers in India with a daily circulation of over 100 million copies.
The industry is projected to grow at 11.8 per cent in 2013 to reach Rs 917 billion (US$ 14.79 billion). The sector is also expected to achieve a CAGR of 15.2 per cent to touch Rs 1661 billion (US$ 26.79 billion) by 2017.
Total advertising expenditure across media was Rs 327.4 billion (US$ 5.28 billion) in 2012, contributing to 40 per cent of M&E sector revenues.
Times Internet (TIL), has signed a partnership with Ziff Davis Inc., an American publisher and Internet company that attracts 120 million in-market buyers monthly. As part of the partnership, Times Internet will have exclusive rights to the IGN and AskMen brands – the premium gaming and men's lifestyle sites respectively– and their content in the country. This partnership will further enhance TIL's growth as a digital community for Indian consumers who are avid followers of games, entertainment and lifestyle.
The Indian M&E industry is expected to grow 11.8 per cent to touch Rs 91,700 crore (US$ 14.78 billion) in 2013, according to an industry report. Even though traditional media such as television and print are still the preferred medium, other segments such as animation, visual effects, films and music are slowly establishing themselves in the market.
Television and newspapers remain the people's preferred choice for entertainment, accounting for over four-fifths of the advertising revenue. However, the online media is gaining ground. Expenditure on digital media which was about 1 per cent of the total advertising spend in 2005 touched 7 per cent in 2012.