According to a KPMG annual report released at Ficci Frames, the M-E industry is poised to grow at 13.9% CAGR to reach Rs.1,96,400 crore over the next five years, from Rs.1,02,500 crore in 2014. There is a ` mixed bag of `good and not-so-good' news across segments.
A look at last year's mergers and acquisitions (M&As) would show growth in both volume and value terms, with television and new media being the two biggest gainers. The biggest deal being Reliance Industries' (RIL) acquisition of Network 18 Media and Investments and TV18 Broadcast for $167 million and $257 million, respectively.
The story , as always, is not the same across sectors -the best being new media and the worst being films. Television, which forms approximately 37% of the advertising pie, will see a long-term growth to go back to 15.5% from 13.8% last year.
Unfortunately , there was no happy ending for films in 2014. With just 0.1% growth, the industry would have actually de-grown, if not for a couple of big Tamil and Telugu movies at the end of the year.
While the film industry was a letdown, it was digital which was a big story in 2014. In 2014, this category grew close to 45%. The biggest turn here was reaching the critical mass. Crossing 100 million in smartphones last year helped the digital story. Secondly, India now has 152 million active users, which is a large base, giving advertisers the scale.
Entertainment is becoming a personal experience and the second screen is definitely the mobile now which is compelling media companies to launch their mobile entertainment apps, like Ditto (Zee) and Hotstar (Star).
No comments:
Post a Comment