India’s entertainment sector to reach US$37BN by 2021: FICCI-KPMG | Broadcast | News | Rapid TV News
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India’s television sector is forecast to grow at a CAGR rate of 14.7% over the next five years after a slow 2016, predicts the latest annual FICCI-KPMG report.

FICCI Frames 2017The country’s entire media and entertainment (M&E) industry is projected to rise at 13.9% CAGR in the five years to 2021, with advertising revenue over the entire predicted to increase at a CAGR of 15.3%, according to researchers.

In 2017, the M&E industry as a whole grew at 9.1% to reach INR1,262.1 billion (US$19.3 billion) – some 4% less than that forecast by FICCI-KPMG a year ago. The Indian Government’s demonetisation policy has adversely impacted the sector’s performance in the third and fourth quarters of calendar 2016, the report claims.

In the television sector, slower growth of 8.5% was recorded for 2016, attributed to a disappointing 7% growth in subscription revenues and 11% growth in advertising revenue. In the coming five years, however, these revenues are set to grow at CAGR rates of 14.8% and 14.4% respectively, said FICCI-KPMG during the FICCI Frames conference in Mumbai.

Advances in infrastructure, leading to better content and lower data costs, would continue to drive user habits towards greater digital consumption, the annual report said.

A growing importance of free-to-air channels has emerged, following expansion by BARC India of TV audience measurement in rural areas during the past year. Another notable impact has been 4G mobile rollout and the price wars still waging between network operators vying for video-hungry digital customers.

“The industry has gulped down the bitter pill of demonetization trusting its long-term benefits and yet is set to bounce back to a steady growth, thanks to strong fundamentals,” said FICCI M&E committee chairman, and chairman and CEO of Star India Uday Shankar. He added that a “quick transition to digitisation” would ensure growth for all involved in the TV sector.