Indian M&E Industry To Reach 2260 Billion By 2020: FICCI-KPMG Report

If a recently published FICCI-KPMG report is to be believed then Indian media and entertainment (M&E) industry is expected to grow at a robust CAGR of 14.3% to reach Rs 2260 billion by 2020. This would be mainly led by advertising revenue, which is expected to grow to Rs 994 billion at a rate of 15.9%. During 2015, digital advertising continued its strong run with 38.2% growth over 2014 due to ever increasing internet user base and data usage and marketers increasing the spend allocation towards digital medium. Datawise overall advertising grew by 14.7% from Rs 414 billion in 2014 to Rs 475 billion in 201, while Media and entertainment sector grew by 12.8% from Rs1026 billion in 2014 to Rs 1157 billion in 2015

As per the FICCI - KPMG Media and Entertainment industry report 2016, by 2020 digital advertising market would reach Rs 255 billion and contribute to 25.7% of total advertising revenues. Importantly it will include increased share of mobile and video advertising as part of digital media.

 “We are going through a phase of rapid and sustained technological innovation which will permanently change the way consumers will access and consume content”, said  A. Didar Singh, Secretary General, FICCI at the inaugural session of FICCI Frames 2016. “Significantly changing user habits will disrupt existing business models as content providers and brands will need to match consumer expectations.  While this will pose multiple challenges, we believe that there are significant opportunities for M&E companies to leverage the new digital ecosystem,” he added.  

On the key development of 2015, the said report highlighted the implementation of a viewership measurement system by Broadcast Audience Research Council (BARC). Due to this impact on budget allocations for advertising among channels will be going to change. On the other hand, the report also marked that the e-commerce industry is expected to continue to advertise across mediums, moving from its earlier focus on digital platforms with an increased focus on regional markets. “Print saw a slower growth in the past year but TV and digital advertising have exceeded expectations. With the wide rollout of 4G finally underway, coupled with the ‘Digital India’ initiative, the future of digital advertising is very bright,” said Jehil Thakkar, Partner and Head of Media and Entertainment, KPMG in India