Media and entertainment sector is facing a slowdown

Today, FICCI-KPMG report was published, and as per the report, there is a sluggish growth in the media and entertainment sector as the industry grew at 9.1% in 2016 as compared to 12.8% in 2015, which is a 4% decline.

This slowdown in the industry was due to demonetisation, which adversely affected the Q3 results, especially in advertising segment, wherein the report states that demonetisation had a negative impact on TV ad revenues to the extent of 2% on print (1-1.5%),films(5%) and radio (2-3%). It also states that the impact is short lived and the situation will return to normalcy by Q2 CY17

However the radio segment has outperformed expectations, by registering a growth of 14.6%. It was considered to be bad year for TV ad revenues as it grew only by 11% in 2016 as compared to 17% in 2015, and the report believes that it was temporarily impacted by the drop in consumption due to demonetisation. The Films segment performed badly, wherein it saw huge decline in its core revenue streams of satellite rights due to poor box office performance of Bollywood In 2015. But there were many films that crossed Rs 50 crore in earnings, and thus added to the overall box office collection. In 2016 this balance was missing. However, Hollywood did exceptionally well, thanks to Jungle Book.