The media and entertainment (M&E) industry logged a healthy 12% growth to Rs 92,800 crore in 2013, largely driven by digitisation, according to the Ficci-KPMG report. The report will be formally released at the 15th edition of the industry jamboree Ficci Frames next week. The three-day international industry event will begin next Wednesday with the theme 'Media and Entertainment: Transforming Lives,' with Australia as the partner country. The jamboree is expected to be attended by a host of media, film and entertainment personalities and industry leaders from the country and abroad besides telecom regulator Rahul Khullar, information & broadcasting secretary Bimal Julka and other senior government officials.
However, the report did not offer any growth projection for the current year. The advertising revenues of mass media like television and newspapers were hit mainly on account of economic slowdown and depreciation in the rupee, affecting the fortunes of print, cable and DTH companies. The Print sector grew at a CAGR of 8.5% in 2013 to reach Rs 24,300 crore, the report found.
However, this was countered by the impact of continued digitisation of media products and services, and growth in the regional media domain. "2013 has been an extraordinary year for the media and entertainment sector -- a year of challenges and significant change which saw the industry dealing with a host of issues," Chairman of FICCI M&E committee Uday Shankar said. Television saw the implementation of the 10+2 advertising cap and significant progress in seeding of set top boxes, which set the stage of revenue growth and expansion in genres, he said.
The film sector continued to mature on the back of multiplex expansion and a wide variety of content, while the radio and print continue to defy global trends and await positive regulatory intervention that will take these sectors to greater heights, added Uday Shankar. Digitisation of cable saw progress of television industry moving in the right direction, with the mandatory Digital Access System (DAS) roll-out almost complete in Phase II cities. Consequently, carriage fees saw an overall reduction of 15-20%, the study pointed out. However, the anticipated increase in ARPUs and subscription revenues for broadcasters and MSOs (Multi System Operators) is expected to be realised only over the next 2 to 3 years, it said.
INDIAN ENTERTAINMENT INDUSTRY AT A GLANCE IN 2013 - 2014 