CHENNAI: Digital platforms will be a significant driver of growth in the media and entertainment (M&E) industry in South India, the value of which is projected to increase more than 80% over the next four years, a new report has said.
Media & Entertainment in South India—the Digital March, a study from consulting firm Deloitte Touche Tohmatsu India and the Federation of Indian Chambers of Commerce and Industry (FICCI), forecast that a CAGR of 16% would see the industry grow from its current value of Rs 23,900 crore to reach Rs 43,600 crore by 2016-17.
"All media platforms viz. films, TV, print and radio are pushing content on the digital medium so as to enhance reach," said Kamal Haasan, chairman, FICCI Media and Entertainment Forum, South, in remarks reported by Livemint.
"Not only is the digital medium helping industry players reach wider audiences, it is also enabling them to establish a stronger connect with consumers," he added.
The report further noted that the increasing popularity of vernacular content in the region would also be an important factor in the industry's growth.
The south Indian market is currently dominated by television (56%), followed by print (28%) and films (11%).
The television market, currently estimated at Rs 13,470 crore, is expected to grow at a CAGR of 20% over the period under review as the benefits of a nationwide digitisation programme are realised.
Growth in the print sector, valued at Rs 6,680 crore will be rather slower, with a predicted CAGR of 8%.
The report highlighted the launch of local-language dailies to take advantage of demand from local advertisers and the increasing focus of national advertisers beyond the bigger cities. Advertising revenues from this source were expected to grow at twice the rate of those papers in English.
In addition, the print industry was developing mobile apps and mobile optimized websites as it sought to identify monetisation opportunities online.
South India also possesses a major film industry – it produces more movies than Bollywood – valued at Rs 2,680 crore and predicted to see a CAGR of 12% over the next four years.
Digital is also reaching into every aspect of this industry, from scouting talent via social media, through distribution and ticketing.
Data sourced from Livemint; additional content by Warc staff