Thursday, 6 September 2018

IPL ensures TV ads grow by 10%, Indian M&E industry worth $20 billion: KPMG

Indian M&E industry worth $20 billion: KPMG

Professional global financial services firm KPMG in its latest report –  India’s – Media and Entertainment Report 2018 – has said that the Indian media and entertainment industry has reached ₹1.43 lakh crores ($20 billion) with 11% growth reported over the financial year 2017. Indian TV advertising, bolstered by Indian Premier League (IPL), also grew by 10.3% in FY18.
The Indian M&E industry is now on the road to recovery after facing a downward spiral since November 2016 due to major government regulatory interventions like  demonetisation, GST and RERA resulting in lower consumption and ad spend during FY ’18.
The prime factor attributed to the gargantuan upscale is the strong and consistent economic growth coupled with a rise in consumption and growth in digitisation.
The TV industry in India was estimated at ₹652 billion in FY ’ 18, a growth of 9.5% from FY ’17, having grown at a CAGR of 10.7% between FY 14-18. The market size consisted of advertisement revenues of ₹224 billion and subscription revenues of ₹428 billion in FY18.
Strong performance of Indian Premier League (IPL), free-to-air (FTA) channels and consumer promotions by FMCG companies in the festive season resulted in TV advertising growing 10.3% in FY18, states the report.
Digital advertisement revenues also grew rapidly at 35% in FY18 to reach ₹116.3 billion. Key growth drivers were developments in digital infrastructure; increased inclusion of and adoption by regional, non-urban users; increase in the penetration of mobile phones; and increase in maturity in the digital ecosystem driven by public and private investments.
The Indian mobile gaming industry has the most ferocious upsurge. From a meagre contribution of 18% in 2012 (the smallest segment), mobile gaming comprised 46% of the global gaming revenue in 2017 and this number is set to reach 60% by 2021. Mobile gaming already leads from the front in India with nearly 89% of all gaming revenue in India generated by mobile games in 2017.
The higher than expected growth in online gaming over the past 18 months has primarily been on account of the mobile gaming segment, which has benefitted from the fall in 3G and 4G data costs.

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