The Indian M&E industry being
one of the fastest growing industries in the world has made tremendous strides in the post reform
era. Ever evolving technologies, extensive use of media by corporate provide
both opportunities and challenges to the
Media and Entertainment industry. The M&E industry which
principally comprises of various segments such as film, television, advertising, print
media, OOH and music had been adversely impacted by the global financial crisis.
The industry which was estimated to be worth Rs 587 bn during
FY2009-10 underwent a rough patch in the last two years. The industry, which is
dependent on advertising for almost 40% of its revenues, was hit due to
shrinking ad budgets of the corporate world. However, the Indian M&E industry
registered a very modest growth of around 1.4% during FY2010 compared to a
12% growth in the erstwhile year. It is poised for recovery in 2010, thanks to the
positive economic growth and favorable demographics of the country. The
industry is projected to grow at a CAGR of 13% in the next five years. The Indian
entertainment industry came off age and gained global recognition when
A R Rahman and Resul Pookutty won the Oscars for their work in Slumdog Millionaire. According to The
Analyst 500 ranking of 2010 based on net
income, Sun TV Network Ltd. has topped the list in the M&E segment. With the net
income of Rs 1,435.73 cr, it bagged
285th position in the top 500 Analyst
list.
The reasons behind the growth during the year are massive
digitalization, regionalization, tapping untapped
markets, increasing competition, globalization, increased consumer
preferences, and the emergence of new players with growing number of pay audiences.
During the year, some sub-sectors in the Media and Entertainment
industry have been affected, i.e., film and radio reported negative growth, print
reported moderate growth while the TV reported positive growth rate. |
