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Media and Entertainment Industry

September, 2013

Indian Media & Entertainment Industry: Brief Introduction

The Rs 83, 000 crore (US$ 13.23 billion)-Indian Media and Entertainment (M&E) industry is making high growth strides. Proving its resilience when the global economy is going through tough times, the Indian M&E sector is on the cusp of a strong phase of growth, backed by rising consumer payments and advertising revenues across all sectors.

The industry has been largely driven by increasing digitisation and higher internet usage over the last decade. Internet has almost become a mainstream media for entertainment for most of the people. Recent statistics and developments pertaining to the sector are discussed hereafter.

Market Dynamics

  • The size of the Indian M&E sector increased from about Rs 805 billion (US$ 12.84 billion) in 2011 to almost Rs 965 billion (US$ 15.38 billion) in 2012, showcasing a year-on-year (y-o-y) growth of 20 per cent, according to PwC India.
  • India's television market expanded by 13 per cent with revenues increasing from Rs 340 billion (US$ 5.42 billion) in 2011 to Rs 383 billion (US$ 6.11 billion) in 2012.
  • Filmed entertainment recorded a growth of 17 per cent; revenues increased from Rs 96 billion (US$ 1.53 billion) in 2011 to Rs 112 billion (US$ 1.79 billion) in 2012.
  • The print sector continued to sustain its beneficiary position. The revenues are expected to increase by more than 9 per cent compounded annual growth rate (CAGR) to reach Rs 331 billion (US$ 5.28 billion) in 2017 from Rs 212 billion (US$ 3.38 billion) in 2012.
  • A report by CII-PwC states that the television and print sectors dominated the industry with about 40 per cent and 22 per cent contribution to industry revenues respectively in 2012. On the other hand, Internet access and films account for about 18 per cent and 12 per cent of the industry revenues, respectively.

Advertising, Online and Mobile Entertainment

In today’s times, the Indian entertainment segment is largely driven by digitisation and internet penetration. More than 227 million Indians use their mobiles, computers, tablets or other devices to access internet to listen to music, watch a film, a TV show or a cricket match.

  • A recent industry report has stated that in 2012, of the Rs 27,000 crore (US$ 4.31 billion) that digital media made, more than 80 per cent of the revenues were contributed by the entertainment products online.

    Meanwhile, video consumption in India has doubled to 3.7 billion a month over the last two years, according to comScore. India ranks third in the world in watching videos online through a PC/laptop and fourth in the world when it comes to watching videos on the phone, according to the statistics.
  • Another study made by Mobile Marketing Association (MMA) in association with media platform, exchange4media, states that the mobile advertisement market is estimated US$ 45 million in India. It is expected to grow 43 per cent to Rs 430 crore (US$ 68.57 million) in 2014, driven by affordable smartphones and tablets.