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Media: The Sunrise Sector |
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Equitymaster |
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The entertainment and media industry is one of the fastest growing sectors in India. According to KSA Technopak, more than 50 percent of the total consumer spending covers food-related items. It claims that with the rise in income levels, the share of leisure and entertainment spend will increase at a higher rate in comparison to the share of food spend.
Currently, the Indian E&M industry is valued at INR 353 billion and is forecasted to grow at a CAGR of 19 percent over the next five years. |
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Key Growth Drivers |
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Television
The penetration of television in India is among the lowest in the world. With increasing competition, their low prices have increased the affordability of television in India. Further, the arrival of the cable television is expected to significantly improve penetration levels.
Currently, the Indian television subscription market is valued at USD 1.6 billion. Subscription revenues are expected to increase from both the number of pay TV homes and increased subscription rates. Direct to home (DTH) and Internet protocol television (IPTV) services are expected to play a significant role in helping the television industry to recover its losses.
Growing consumer centricity in the country will increase the advertisement expenditure over the next five years, which in turn is expected to further increase advertising revenues. |
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| Media Reach (%) |
Press |
Television |
C&S Television |
RADIO |
Cinema |
Internet |
| Sec A |
78 |
88 |
79 |
24 |
12 |
9 |
| Sec B |
65 |
86 |
59 |
21 |
11 |
3 |
| Sec C |
50 |
83 |
50 |
20 |
11 |
1 |
| Sec D |
32 |
75 |
36 |
17 |
11 |
0 |
| Sec E |
16 |
61 |
24 |
15 |
11 |
0 |
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Radio
In 2005, the Indian government permitted FDI in the radio sector. Approximately 338 licenses have been sold across India through the bidding process. In 2004, the radio industry was valued at INR 2400 million which increased to INR 3,700 million by 2006. An approximate 25 percent growth in revenues is projected over the next three to five years. |
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Print Media
Government initiatives and the increasing need for content have been triggering the growth in the print media industry. The Indian readership base is expected to increase with the rise in the literacy rate, thereby benefiting the media industry. In 2004, the print media market was estimated at INR 97,800 million, with an estimated 20-percent annual growth. |
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Source: Equitymaster |
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