(22 March 2010)

India's Media & Entertainment Industry is set to grow to INR 1.1Trillion by 2014 at the current compounded annual growth rate of 13 percent per annum according to the annual KPMG & FICCI report on the industry. In 2009, The films “3 Idiots” and “Avatar” created history in India through record breaking box office collections and even the change in venue to South Africa had little impact on the third season of IPL (Indian Premier League) cricket which saw substantial growth in advertising revenue for the broadcaster.

"Amidst the uncertain economic environment that was prevalent last year, the Indian M&E industry has weathered the storm and is showing signs of accelerating its growth" the report states. "The industry performance in 2009 was a consequence of not only the slowdown, but also several internal factors that lowered the pace of growth for the otherwise flourishing media and entertainment business in India. The multiplex strike, lack of quality content, delay in auctions for phase 3 FM radio and 3G mobile telecom licenses were some of the unexpected events that further impeded the development of this industry.The pressure on margins and curtailed media spend by advertisers in 2009 brought a renewed focus on managing costs, innovation and creativity."

"The improved market sentiment in 2010 has set the tone for a promising year ahead. . The GDP forecast at is 6.75 percent and 8 percent for the years 2009-10 and 2011-12 respectively looks promising. On the back of several factors, the overall M&E market in India is expected to grow at a compounded annual growth rate of 13 percent per annum through 2014 to reach INR 1.1 trillion. The untapped potential for growth in media reach, impact of digitisation and convergence, better consumer understanding, sustained efforts in innovation, and enhanced penetration of regional markets all augur well for the industry."

"The Indian M&E industry has evolved significantly over the last decade and the pace of this evolution is only expected to increase going forward. With mobile phones becoming ubiquitous, rising mobile and internet penetration and increased use of search engines and social networking platforms, consumer patterns have witnessed a marked change in India."

Click here to download a copy of the KPMG FICCI report. (8.2MB )