India's entertainment and media industry to clock over 2, 24,500 crore by 2017: CII-PwC

New Delhi, Sept 10 (ANI): The CII-PwC's latest report titled 'India Entertainment and Media Outlook 2013' says that India's entertainment and media sector is expected to grow steadily over the next five years.

The industry is expected to exceed Rs. 224,500 crore growing at a CAGR of 18 percent from 2012 to 2017. The CII-PwC report, 'India Entertainment and Media Outlook 2013' will be released on September 13 at the second edition of the CII Big Picture Summit in New Delhi.

The Summit will bring together the finest business and creative minds of the M and E industry with 'Embracing Innovation in Media' as theme towards achieving 100 billion dollars Indian M and E sector' by the end of this decade. Over 70 M and E leaders will be speaking at the two-day summit organised by the Confederation of Indian Industry.

Today, the size of the Indian M and E sector increased from about 805 billion INR in 2011 to almost 965 billion INR in 2012 representing a year-on-year growth of 20 percent.

This growth was achieved in spite of a relative slowdown in the broader economy, underlining the resilience of the E and M sector. It is expected to grow at about 18 percent CAGR over 2012-2017 and reach revenues of about 2,245 billion INR in 2017.

"This growth is driven by the introduction of cable TV digitization, continued growth of regional media, continued strength of the filmed entertainment sector, fast increasing new media businesses and transparency,'' said Chandrajit Banerjee, Director General, Confederation of Indian Industry.

"We believe that innovation - faster, better, more efficient, thinking out of the box (and within the box) would be one of the game changers in this space,'' he added.

Smita Jha, Leader Entertainment and Media Practice, PwC India, said: "With increasing proliferation of digital platforms, industry participants will need to invest in constant innovation that encompasses products and services, business and operating models and most importantly, consumer experience and engagement. Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services."

An entire chapter on "The Innovation Imperative in the rapidly evolving E and M sector" has documented strategies for E and M companies in the CII-PwC report. Indian E and M businesses, like their peers abroad, will need to raise their game in operational agility and customer insight.

"To achieve this successfully, every industry participant will need to invest in constant innovation that encompasses products and services, business and operating models and most importantly, customer experience and engagement. Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services,'' the report said.

India's television market grew at 13 percent with revenues increasing from 340 billion INR in 2011 to 383 billion INR in 2012. Filmed entertainment also demonstrated stellar growth in 2012 with sector revenues increasing by about 17 percent from 96 billion INR in 2011 to 112 billion INR in 2012.

The print sector revenues are expected to increase at over 9 percent CAGR to reach 331 billion INR in 2017 from 212 billion INR in 2012.

Year-on-year sectors such as internet access (30 percent), internet advertising (29 percent), gaming (19 percent), and music (15 percent) are expected to continue on their high growth trajectory.

The radio sector is also expected to receive a fillip with the successful conclusion of Phase III license auctions and it is expected to grow at a robust CAGR of about 16 percent.

The rapid rise of Internet usage, high penetration of smart phones, digital advertising, wireless broadband, digital content consumption, regulatory interventions have had a significant impact on the E and M sector.

The television and print sectors dominate the industry with about 40 percent and 22 percent contribution to industry revenues respectively in 2012. Internet access now commands about 18 percent share and films 12 percent of industry revenues.

However, in 2017, television will continue to lead the industry in terms of revenue contribution with 39 percent share, followed by internet access with 28 percent share. The share of print and films are likely to decrease 15 percent and 9 percent in 2017.

Today, if we take the E and M growth without taking internet access and internet advertising into account the size of the Indian M and E sector increased from about 690 billion INR in 2011 to almost 795 billion INR in 2012. It is expected to grow at about 15 percent CAGR over 2012-2017 and reach revenues of about 1,615 billion INR in 2017.

Overall, the Indian E and M industry is on the cusp of a strong phase of growth, backed by rising consumer payments and advertising revenues across all sectors. (ANI)