The Indian media and entertainment industry is expected to grow at an annual average rate of 11.6 percent to reach Rs2 trillion by the year 2020.
The M&E sector reached about Rs1.5 trillion in 2017, a growth of around 13 percent over 2016, said a report released by the lobby group Federation of Indian Chambers of Commerce and Industry along with consulting firm EY.
This growth is being led by the digital segment, showing that advertising budgets are in line with the changes in content consumption patterns. The report observes the sector continues to grow faster than the country’s gross domestic product . Subscription growth outpaced advertising during 2017 but advertising will continue to grow till 2020, led by the digital segment.
The report was launched at the annual media and entertainment industry event Ficci Frames in Mumbai on Sunday.
This growth is expected despite the 26 percent foreign direct investment limit remaining unchanged, restricting access to foreign print players and the imposition of 5 percent GST on advertising revenues emerging from the print industry.
The Indian M&E sector witnessed a relatively new trend in deal activity with emerging segments such as gaming and digital gaining momentum, while deal activity in the traditional media segments was slower, the report stated.
Films grew 27 per cent 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 grew with the exception of home video, and the film segment reached Rs156 billion in 2017.