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FICCI-KPMG report projects TV sector to reach Rs 1166 bn by 2021

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MUMBAI: The year 2016 was a mixed bag for the Media and Entertainment (M&E) industry. The sector is projected to grow at a faster pace of 14 per cent over the period 2016–21 with advertising revenue expected to increase at a CAGR of 15.3 per cent, according to a report released today.

As per the KPMG-FICCI Indian Media and Entertainment Industry Report 2017, themed Media for the Masses: The Promise Unfolds, the television industry in India stands at an estimated size of Rs 588 billion in 2016, a growth of 8.5 per cent over 2015, and is envisaged to register a CAGR of 14.7 to reach Rs 1166 billion by 2021.

The Indian economy is expected to outperform major economies with a projected financial year FY17 GDP growth rate of 7.1 per cent despite the speed bump caused by demonetization, the report states, adding TV witnessed a slower growth in 2016 at 8.5 per cent primarily due to a lackluster year for subscription revenues and a slowdown in advertisement revenue growth. However, over the next five years as both advertisements and subscription revenues are projected to exhibit strong growth at 14.4 per cent and 14.68 per cent, respectively, the industry too will grow.

According to the report, advertising revenues are expected to grow at marginally slower rate of 13.1 per cent due to the lingering effect of demonetization and initial volatility arising from GST implementation. Digital advertising is expected to grow at a CAGR of 31 per cent to reach Rs 294.5 billion by 2021,

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