NEW DELHI: India's entertainment and media (E&M) sector is on course for delivering a compound annual growth rate (CAGR) of 15% between 2013 and 2018, which will value it at Rs 227,000 crore by 2018, a new industry report has forecast.
The India Entertainment and Media Outlook 2014 report, a joint study by the Confederation of Indian Industry (CII) and PwC, the international consultancy, said the market was worth Rs 112,044 crore in 2013 and grew 19% over the previous year.
Television, the largest segment, recorded year-on-year growth of about 15% on the back of subscription revenues, but the internet was the fastest growing segment.
Internet access recorded annual growth of 47% while internet advertising grew 26%, the report said, while noting that internet access has already overtaken the print segment to be the second-largest segment for overall E&M sector revenues.
Internet advertising is expected to become the third-largest segment by 2018, accounting for about 16% of total E&M advertising revenues, although TV and print are expected to remain the largest segments for advertising revenues.
The film segment is also forecast to deliver a solid CAGR of 12% over the forecast period as it increases revenues from the sale of cable and satellite rights while increasing takings from the box office both in India and abroad.
Smita Jha, leader of entertainment and media practice at PwC India advised industry practitioners to focus on their customers as much as new technology.
"Digital success does not just necessarily mean better, improved technology. It means applying a digital mindset to build the right behaviours among industry stakeholders," she said
"This includes getting ever closer to the customer – across the entire organisation, and in everything it does."
Data sourced from CII-PwC; additional content by Warc staff