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The Federation of Indian Chamber of Commerce and Industry (FICCI) and KPMG have just released a report that predicts a recovery in the Indian Media & Entertainment (M&E) market in 2010.
The FICCI-KPMG report points out that the Indian M&E industry went through a tough phase in the last two years due to the economic slowdown which impacted businesses in the country. 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 industry as a whole remained at an almost flat rate registering a very modest growth of around 1.3% in 2009 compared to 12 % in 2008. It is poised for recovery in 2010, riding on the back of economic growth picking up and favorable demographics of the country.
In 2009, some sectors were impacted more than the others like OOH and Films, both of which registered a negative growth during the year. Even in 2010, they are expected to recover with an almost flat or moderate growth rate. Sectors like Print, Radio and music either remained flat or showed a very moderate growth. TV industry displayed an almost double digit growth rate, mainly on account of subscription revenues, though advertising revenues also showed positive growth. Internet, Gaming and Animation, brought reasons to cheer for the industry with their growth rates touching double digits, albeit on a smaller base.
The FICCI and KPMG identify digitization as a key drivers for the growth of the M&E industry. According to the report, availability and penetration of newer distribution platforms like Digital Cable, DTH and IPTV, digitization of newspapers, magazines, films and sale of online and mobile music are some of the ways in which the M&E industry has benefited from digitization and the growth is likely to continue in years to come.
