Indian Media Industry in 2010: TV Is The Juggernaut

In how many markets can media companies honestly say they’ll be growing in double digits this year? Exactly. The Indian media and entertainment market, which had a relatively tepid 2009 in face of collapsing media markets all around, is slated to be back on track, according to a new 234-page report by KPMG-FICCI report on media and entertainment sector in the country. Some numbers:
— Indian M&E industry will grow at a compounded annual growth rate of 13 percent per annum through 2014 to reach INR 1.1 trillion.
— Outdoor, Films and Radio had a negative growth year, while print was a moderate growth year. TV industry showed a good growth rate.
— TV industry is estimated to have reached a size of INR 257 billion, a growth of 6.8 percent over 2008. Expected to grow at the rate of 15 percent over 2010-14 and reach a size of INR 521 billion in 2014.
— The film industry has clocked revenues of around INR 89 billion in size in 2009, a negative growth of 14 percent over 2008, due to lack of infrastructure and other issues.
— Print’s slowing down in India too: a very moderate growth of 2 percent in 2009 and reached around INR 175 billion in size; projected to grow at a CAGR of 9 percent over the next five years and reach around INR 269 billion in size by 2014
— Radio industry is estimated to have grown at a CAGR of 9 percent over 2006-09. It is estimated to have reached a size of INR 7.8 billion by end of 2009, a decline of 0.3 percent over the previous year.
— Music industry was estimated at around INR 8.3 billion in 2009, up from INR 7.3 billion in 2008, implying a growth of 14 percent during the period. Digital growth is driving it there.
— Gaming’s the biggest growth area: While the sector has shown a 22 percent growth in 2009, it is expected to grow at a CAGR of 32 percent in the next 5 years to reach INR 32 billion by 2014.
— Internet advertising is only about 1 percent of the total M&E revenues in 2009, and is only expected to go up to 3 percent by 2014. But given its small base, is expected to grow the fastest at a CAGR of 29.6 percent over the next five years.
The sectorwise breakdown chart is below; click to enlarge:

Full report embedded below:

Indian Media and Entertainment (M&E) industry 2010 report