MUMBAI: The Media and Entertainment Industry (M&E) in South India is expected to grow at a compound annual growth rate of (CAGR) of 14 per cent, to reach Rs 36,005 crore by the fiscal 2015-16, from the present size of Rs 21,190 crore, according to FICCI-Deloitte report.
The growth is driven by an evolving ecosystem, and demand base and high technology adoption even as there are concerns over the present economic turbulence which is bound to affect advertisers’ spend on various media, said the report on ‘South Indian Media and Entertainment Industry’.
The report by Deloitte Touche Tohmatsu India Pvt Ltd and Federation of Indian Chamber of Commerce and Industry (FICCI), was released on Tuesday during the Media and Entertainment Business Conclave (MEBC) 2012.
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The market size for radio is around Rs 365 crore, which is 1.72 per cent of the market size at present, but growing at the highest CAGR, of 22 per cent.
It is said that private FM industry revenue in Tamil Nadu is expected to almost treble to touch Rs 315 crore in 2016 from the present Rs 140 crore. In Andhra Pradesh, this industry is expected to touch Rs160 crore from Rs 70 crore, Karnataka Rs 160 crore from Rs 115 crore, Kerala Rs 85 crore from Rs 40 crore, it said.
This year, from total revenues in South India, Tamil Nadu and Karnataka have a share of 38 percent and 32 percent, Andhra Pradesh and Kerala at 19 percent and 11 percent.
Stating that radio listeners might opt for channels providing variation in programming content and formats, the report said: “This experimentation would not only help in retaining listeners for a longer haul, but also play a crucial role in drawing more advertisers for radio promotions”.
“In the long run, the radio as a medium for launching brand promotion and ad campaigns is poised for a bright future,” it said.
In the M&E market in the South Indian states, Tamil Nadu has the largest market share, around Rs 7,620 crore with around 36 per cent of the media and entertainment market in the region.
Andhra Pradesh follows with around Rs 6,480 crore, which is 30 per cent of the market, while Karnataka has around Rs 3,985 crore market which is 19 per cent of the region’s total media and entertainment market. Kerala has around Rs 3,105 crore market, which is about 15 per cent of the market, at present.
The television industry is around Rs 12,220 or around 58 per cent of the present market, followed by print industry at around Rs 6,265 crore with around 29 per cent market share and film industry at Rs 2,340 crore with around 11 per cent market share.
Meanwhile, the film industry in South India is expected to grow from Rs 2,340 crore in 2012 to Rs 3,550 crore in 2016. In film industry, Tamil Nadu occupies the major share of the market size at present, with around Rs 1,030 crore, while Andhra Pradesh has Rs 1,020 crore film industry, Karnataka has Rs 140 crore and Kerala has around Rs 150 crore of the total South Indian film industry.
Delivering his welcome address, actor Kamal Haasan, who is chairman of MEBC, FICCI, said: “The film industry in South India has a major role in the film industry in the country. Around 65 per cent of the films produced in India are from South India.”
In the South Indian film industry, with corporates foraying into the entertainment business, cost management in big budget ventures is becoming a noticeable trend. However, given the pace of activities in the film industry in the region, there is likely to be a considerable shortage of skilled resources. This could be addressed through methodically identifying the gaps and subsequent training needs, said the report. Collective initiatives from multiple stakeholders across the industry value chain, including efforts for a Media and Entertainment Skill Council (MESC) would help the industry overcome this challenge, according to the report.
The report said that although digital media is creating new avenues for the M&E industry, piracy poses a real threat for the film and music industry.
Some steps taken to curb piracy are application to monitor pirated content, collaboration with international players to tackle the piracy menace, designated policy group with support from legal apparatus and cooperation from the local police.
“To stem the piracy menace, the film industry is seeking help from IT professionals to promote a safer digital world for films. As the threat persists, the battle can be
effectively fought by spreading awareness and seeking collaboration from society at large”, the report said.
