IBEF: August 21, 2019
The media and media industry in India has reached a size of Rs 1,63,100 crore (US$ 23.33 billion) in FY'19, posting a growth of 13 per cent, clocking a CAGR of 11.5 per cent over the period FY15-19, as per KPMG India's eleventh version of its Media and Entertainment (M&E) report. Titled 'India's Digital Future: Mass of Niches', the report additionally said that the advanced market is ready to turn into the second biggest section in India after TV, and also attract the greatest promoting spend by FY'22.
The M&E business grew 13 per cent in FY19 on the back of quick development in advanced client base and utilization, combined with developing regional demand and monetisation.
The M&E business is expected to post a CAGR of 13.5 per cent over FY19-24, to reach a size of Rs 3,07,000 crore (US$ 43.92 billion) in FY'24. This will be on the back of a greater focus on monetisation of emerging digital business model, strong regional opportunities and favourable regulatory and operating scenarios across traditional business.
However, it also distinguished headwinds like the New Tariff Order (NTO) execution vulnerabilities, and early indications of economic slowdown, which have pulled down the overall development.
With no major obliging factors, digital is relied upon to be a dominant force going ahead and in FY'23, it is probably going to be the second biggest section after TV and pull in the most elevated advertising spend among all media positions. In 2019, as digital behaviour evolves, subscription models will have greater role in monetisation of digital platforms. Further, evolving technologies are also presenting opportunities for companies in the media and media industry to accomplish more operational efficiencies
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.