MEDIA & ENTERTAINMENT INDUSTRY

The Indian Media and Entertainment

(M&E) industry is a sunrise sector for
the economy and is making high
growth strides.
The Indian M&E Industry, one of the
most vibrant and exciting industries in the world, has had a tremendous impact on the lives of
people and the Indian economy. As the M&E industry widens its reach, it plays a critical role in
creating awareness on issues affecting, channeling the energy of and building aspirations among
Indias millions of people. Take for example, a villager illiterate and previously unaware of
what life has to offer, who begins to see a better life through entertainment programs on TV and
aspires for a better life for him and his family. This drives demand for various products and
services. These aspirations have been a key to self-motivated transformation taking deep root in
India-Transformation not just from handouts and government schemes, but transformation
stemming from ambition and aspiration. The media plays a significant role in our lives today and
is all pervasive with touch points ranging from television to newspapers to films to radio to
outdoor properties. With the addition of new media such as social networking services,
animation and VFX, online gaming and applications running on mobile devices, a new
dimension has been added to the world of media that was dominated by traditional media.
The industry has been largely driven by increasing digitization and higher internet usage over the
last decade. Internet has almost become a mainstream media for entertainment for most of the
people. The phased progress in digitization has been the stepping stone for the industrys growth
and success, thereby bringing about a paradigm shift in key indicators, particularly within the
domains of TV and film sectors.
Market Dynamics
2014 has been one of the best years yet for M&E industry with a lot of growth in terms of
revenue & PBT growth, digital growth, awards, talent retention, Training and development, new
products, partnerships and new businesses. While new businesses had a billing of about INR
1000-1200 crore, there were new partnerships with Facebook, Google and Huffington post to
name a few.
According to a report by Group M, This Year Next Year (TYNY), digital advertising investment
is estimated to reach a whopping INR 48,977 crores in 2015, the report also represents a growth
of 12.6% for the calendar year for all media spends as compared to last years growth of 12.5%.
As per GroupMs in-depth research of the Indian media industry, digital media continues to show
the maximum growth with 37% in 2015. Digital has been growing at an average rate of 35%

over the last two of years. This year within digital media Video, Mobile and Social will be the
biggest growth drivers.
According to report, the individual growth in each media will also be good as TV is expected to
grow at 16%, print at 5%, Digital at 37%, OoH at 4%, Radio at 11% and Cinema at 20%. On an
average there will be a 12.6% in all media. On the Digital media mix front, it is expected to be
9.5% in 2015."
While in 2015, the demand is likely to be more on TV, the growth drivers in this will be Telecom,
Auto and e-commerce companies. On the trends front in TV, there have been new channel
launches; south genres will continue to witness adoption of national content; Advertising in this
sector is likely to gain momentum in the market, smaller advertisers will join TV; the HD space
is getting more crowded; the ICC Cricket World cup is going to witness increased advertisers
interest and lastly the Phase 3 digitization is likely to impact viewership in the latter part of 2015.
In 2015, Hindi Print is expected to dominate growth; phase 3 radio roll out will help markets
reach media dark markets; and lastly consolidation spree to continue across print and radio
houses.
The Government of India has supported this sector's growth by taking various initiatives such as
digitizing the cable distribution sector to attract greater institutional funding, increasing FDI limit
from 74 per cent to 100 per cent in cable and DTH satellite platforms, and granting industry
status to the film industry for easy access to institutional finance.