NEW DELHI: The Indian Media and Entertainment (M&E) industry saw a growth of approximately 12 per cent in the Calendar Year 2013, according to the FICCI-KPMG report. The report will be released at the inaugural session of FICCI Frames 2014 on 12 March. The report put the live space in bright light by stating that the live events sector is expected to continue its role as a catalyst for driving growth in artistes’ fan-base, and public performance royalties.
The report further stated that streaming and downloads services continued to see growth in the music industry, with the growth in mobiles, in particular smartphones, contributing significantly to increased consumption of music ‘on-the-go’.
However, with the continued decline in physical sales, compounded by the significant fall in ringback tone revenues (following the backlash of TRAI guidelines issues in 2012), the sector saw an overall fall in size by 10 per cent in 2013. Going forward, digital revenues are expected to drive growth in the sector.
Related Post
The total internet user base in India grew to approximately 214 million by end of the year. About 130 million went online using mobile devices. Mobile Internet users dominated the total internet user base, capturing an overall share of 61 percent. Digital media advertising in India grew faster than any other advertising category.
The economic slowdown impacted advertising revenue dependent sectors such as television and print. The depreciation in the rupee also affected print, cable and DTH companies adversely but helped export oriented sectors such as animation and VFX to some degree. At the same time, this was countered by the impact of continued digitisation of media products and services, and growth in regional media.
FICCI M&E committee chairman Uday Shankar said, “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.”
According to Jehil Thakkar, Head of Media and Entertainment, KPMG in India, “2013 was a year in which many parts of the M&E industry paused and took stock. Focus shifted from top line growth to bottom line growth with companies focusing on operations and efficiency. In spite of a very challenging macro environment, the industry grew 12 per cent, a far better performance than many other industries. The structural changes taking place in the industry – especially in television and digital, continued to take the industry down the path of fulfilling its potential.”
On the radio front, it stated that there is a need for continued positive regulatory intervention, such as implementation of Phase III for the radio sector. Shankar also added, “Radio and print continue to defy global trends and await positive regulatory intervention that will take these sectors to greater heights. I am certain that the insights and findings from this report will provide a comprehensive and useful lens for all of us in the industry”.
This year, the report also highlights opportunities that could come from tapping international markets such as the US and Middle East, with a special feature on opportunities in South Africa and Nigeria.
