Media and Entertainment
India is home to world’s largest film industry.

Indian Entertainment Industry Analysis

Latest update: August, 2018

  • Indian media and entertainment (M&E) industry grew at a CAGR of 18.55 per cent from 2011-2017; and is expected to grow at a CAGR of 13.9 per cent to touch US$ 37.55 billion by 2021 from US$ 22.75 billion in 2017.
  • The next 5 years will see digital technologies increase their influence across the industry leading to a sea change in consumer behaviour across all segments
  • The entertainment industry is projected to be more than US$ 62.2 billion by FY25
  • With an intent of ushering in an era of conversational computing, Microsoft has released an artificial intelligence chatbot known as Ruuh for Facebook Messenger. The English speaking chatbot is only available to users in India and is to be used for entertainment purposes.
  • The industry provides employment to 3.5-4 million people, including both direct and indirect employment as of 2017.
Growth

Notes: CAGR - Compound Annual Growth Rate, P – Projected
Source: KPMG – FICCI Report 2018, Aranca Research

  • The entertainment industry continues to be dominated by the television segment, with the segment accounting for 44.24 per cent of revenue share in 2016, which is expected to grow further to 48.18 per cent by 2021
  • Print media would be the second largest sector in the overall entertainment industry in India, following which sectors of Out of Home (OOH) and Radio are expected to contribute almost 2 per cent each to the entire industry by 2021
  • PVR Cinemas plans to add around 75 screens across India during FY 2017-18, thereby raising its capacity to 650 screens and has a target to achieve 1,000 screens in India by 2020. The number of screens increased to 612 in 2017.
  • Google's video platform, YouTube, plans to increase its user base in India to 400 million, as rising internet penetration in the rural areas will enable the consumers to access videos on their smartphones
Growth

Notes: OOH – Out of Home, TV – Television
Source: KPMG - FICCI Report 2017, Economic Times, Aranca Research

Last Updated: August, 2018

The Indian media industry has tremendous scope for growth in all the segments due to rising incomes and evolving lifestyles. Media is consumed by audience across demographics and various avenues such as television, films, out of home (OOH), radio, animation and visual effect (VFX), music, gaming, digital advertising, and print.

The Media & Entertainment industry is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 11.6 per cent during 2016-20 to reach Rs 2,032 billion (US$ 31.53 billion) in 2020 from Rs 1,308 billion (US$ 19.46 billion) in 2016. The industry provides employment to five million people, including both direct and indirect employment as of 2017.

Advertising expenditure in India is expected to grow 13 per cent year-on-year to Rs 69,346 crore (US$ 10.71 billion) in 2018 and Rs 1.07 trillion (US$ 16.70 billion) by 2020. India digital advertising market has reached Rs 8,202 crore (US$ 1.27 billion) in 2017 and is forecasted to grow at a CAGR of 32 per cent to reach Rs 18,986 crore (US$ 2.95 billion) by 2020.*India’s digital revenues are expected to reach US$394.22 million by 2021. India is the second largest television market in the world with US$ 10.14 billion in revenue in 2017. The Indian film industry is expected to grow at a rate of 11.9 per cent by 2020.

The Government of India has supported this sector's growth by taking various initiatives such as digitising the cable distribution sector to attract greater institutional funding, increasing Foreign Direct Investment (FDI) limit from 74 per cent to 100 per cent in cable and Direct-to-home (DTH) satellite platforms, and granting industry status to the film industry for easy access to institutional finance.

* - According to Digital Advertising Report by Dentsu Aegis Network

Indian Media and Entertainment Industry Report (August, 2018)

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Indian Media and Entertainment Industry Report (July, 2018)

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Click to access the Media and Entertainment Industry Archived Report

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