India’s media industry, harnessing the growth in the broader economy and increasing disposable incomes, may expand in double digits to touch about ₹2 lakh crore (₹2 trillion) in the next two years.
‘Reimagining India’s M&E sector’, the FICCI-EY report released by Union information & broadcasting minister Smriti Irani, put the industry’s size at ₹1.5 lakh crore currently, and it expanded 13% last year. Growth in the digital medium demonstrated that advertising budgets are in line with the changing content consumption patterns.
While demonetisation and GST rollout affected advertising across sectors, digitisation helped subscription revenue to accelerate faster. However, advertising is expected to continue expanding until 2020, led by the digital medium.
DIGITAL MEDIA: It continues to lead the growth charts on advertising. Even as subscription revenues are emerging and are expected to make their presence felt by 2020, digital media grew 29.4% in advertising and 50% in subscription last year.
Subscription, which was just 3.3% of total digital revenues in 2016, is expected to grow to 9% by 2020.
PRINT: After digital, it was print that accounted for the second largest share of the Indian M&E sector, growing at 3% to reach ₹30,300 crore in 2017. Print media is estimated to grow at an overall CAGR of approximately 7% until 2020, with vernacular at 8-9% and English slightly slower, despite the FDI limit remaining unchanged at 26%.
While magazines contributed 4.3% to the total print segment, the industry was largely at status quo with not many significant new launches in 2017.
The report highlights that today, 98% readers read dailies and 20% read magazines, in a reader base of 395 million, or 38% of the population. Readership has grown by 110 million over the last three years with the rural reader base being larger than urban.
TELEVISION: TV industry grew from ₹59,400 crore to ₹66,000 crore in 2017, a growth of 11.2%
(9.8% net of taxes). While advertising grew to ₹26,700 crore comprising 40% of revenues, distribution grew to ₹39,300 crore, 60% of total revenues. FICCI-EY expects advertising to grow to 43% of total revenues by 2020.
FILMS: The Indian film segment grew 27% in 2017 on the back of box office growth — both domestic and international — coupled with increased revenues from sale of satellite and digital rights.
All sub-segments, with the exception of home video, grew and the film segment reached ₹15,600 crore in 2017.