Specials

KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/event-coverage/2016/03/30/fiici-frames16.jpg?itok=dXBN1c8P

MUMBAI: If 2015 was a good year for media and entertainment industry with a growth rate of 12.8 per cent taking it to Rs 1157 billion,(RS 1,15,700 crore) with advertising revenues touching Rs 475 billion (Rs 47,500 crore), 2016 promises to be even better. Estimates show that the industry is to touch  Rs 1315 billion by this year end, with television alone commanding Rs 617 billion (Rs 61,700 crore). And the industry stalwarts project even rosier tidings for 2020.

As per KPMG- FICCI Indian Media and Entertainment Industry Report 2016 that was released on 30 March at FICCI Frames 2016, the sector is projected to grow at a CAGR of 14.3 percent to be valued at Rs 2260 billion (Rs 2,26,000 crore) by 2020, with advertising revenue touching a whooping Rs 994 billion (Rs 99400 crore) at a CAGR growth of 15.9 per cent.

Television continues to thrive:

While 2015 saw the growing stress on the need to transport from traditional media to digital options, the current report reassures the continued importance and relevance of television as a medium, which is projected to grow at a rate of 15.1 CAGR between 2015- 2020, and touch Rs 1,09,760 crore by 2020, out of which Rs 364.5 billion (Rs 36,450 crore) will be contributed by advertising revenue. TV ad revenue is expected to touch Rs 210.3 billion (Rs 21,030 crore) by the end of 2016. On the other hand, subscription revenue for broadcasters is expected to grow at a CAGR of 15 per cent between 2015- 2020, to Rs 733 billion (Rs 73,300 crore). Subscription revenues for TV is estimated to have grown at 13 per cent to reach Rs 361 billion (Rs 36,100 crore). While the figures show a positive growth in advertising revenues, a delayed digitisation process would slow down the subscription growth.

Digital, the fastest growing medium:

Digital Advertising will continue to grow at a high CAGR of 33.5 per cent, the highest growing medium of all. The evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimates that by 2020 digital advertising will touch Rs 255.2 billion  (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

Impact of BARC India ratings on Television:

There are no two opinions about the fact that roll out of BARC ratings was a major event that changed the face of the industry, and perhaps its rules as well.  The implementation of BARC was a major theme in 2015. While inclusion of rural markets and increase in sample size led to a reshuffle of rankings in the ratings of TV channels, particularly highlighting the viewership of FTA channels, there was no immediate impact on ad budget allocations among channels or genres. Going forward, sustained trends in ratings could lead to advertisers re-thinking their ad spend mix and broadcasters their content strategy.

Paid C&S penetration of TV:

The number of TV households in India has increased to 175 million (17.5 crore), at 62 percent growth rate. The figures are estimated to touch 200 million (20 crore) by 2020, with paid cable and satellite subscriber base growing to 174 million (17.5 crore) and command a lion share of 87 per cent of total TV households. However, when considering distribution, challenges in improving addressability, increasing monetisation continues to plague the industry, the report foretells. Meanwhile, competition in the TV distribution space is expected to intensify with Reliance Jio coming in the cable TV business.

ARPU continues to back DTH growth:

As per industry observations shared in the report, DTH has seen an ARPU growth of 10 per cent in 2015, driven by price hikes,  and increased HD feed penetration which constitutes 15 percent of the total subscriber base in the sector. This trend is expected to rule the sector in the upcoming years as well, with average ARPU of HD subscriber estimated to grow to 1.5 to 2 times that of a non HD subscriber. The report also hints at a growth in demand and adoption of 4K STBs, though lack of enough 4K content could be a disadvantage to this growth.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/04/22/vd.jpg?itok=OqsjNKrr
VidNet 2022: 'Over half of global online video services are subscription funded'

Over half of the online video services worldwide were subscription funded at the end of 2021, according to a study. The key findings of the study pointed out that while there are more subscription funded over-the-top (OTT) services worldwide, advertising is a much larger revenue stream for video-on...

Specials Event Coverage VidNet
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/14/1.jpg?itok=VFwvSsa6
#Retrace2021: Influencer-led purchases played a big role in driving growth: SUGAR CEO Vineeta Singh

An established name in the Indian beauty & personal care market, SUGAR Cosmetics was among the early movers into the D2C (direct-to-consumer) space as a digital-first cosmetic brand.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/10/up.jpg?itok=9bVvup1v
#Retrace2021: Associating with marquee properties on TV helped us take a quantum leap on digital: Arjun Mohan

The only ed-tech “to have a ‘donkey’ as its brand ambassador”, upGrad has been hitting all the right notes, starting from its eye-grabbing ‘Don’t lick ass, instead kick ass’ 2020 ad to its fortune-teller donkey ad in early 2021 to drive across its “Sirf Naam Ki Nahi, Kaam Ki Degree” messaging.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/10/rv.jpg?itok=PII_WLnM
#Retrace2021: Inching towards a connected future of audience measurement

It was for the first time since the 1960s, that Nielsen’s measurement lost a “seal of approval” from the industry that uses it, as leading advertisers and TV networks sought alternate means of counting their audiences.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/06/tv.jpg?itok=fW8co-4N
#Retrace2021: Content and advertisers return to TV, AdEx remains elusive

2021 was the year of the paradox. The return of LIVE sports and original programming on TV continued to attract new and more advertisers to the medium ensuring a phenomenal growth in ad volumes over 2020 and 2019.

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/03/deep_mehta.jpg?itok=nuNDNz9x
GUEST COLUMN: How D2C brands can level up their digital marketing game in 2022

Mumbai: In today’s times, Direct-to-consumer is an extremely exciting space, primarily because there are so many interesting brands coming up in multiple industry verticals. Right from food to technology to health and many others, there are home-grown D2C brands making it big while raising...

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/03/newspaper1.jpg?itok=DpvfAktI
#Retrace2021: A look back at print ad campaigns that stood out in 2021

Mumbai: Reeling under the aftermath of the pandemic, the Indian print industry began its road to recovery in 2021. According to the latest Magna Global Forecasting Report released in December, overall, the print industry grew +12 per cent from a low base (2020: -40 per cent), despite the slowdown...

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/01/03/me-industry_0.jpg?itok=BHZUw0H8
#Retrace2021: How streaming wars re-shaped the global M&E industry in 2021

Beginning with the blockbuster M&A deal between Discovery and AT&T in May which created the world’s second-largest media company by revenue after Disney, intensifying streaming wars reshaped the global media and entertainment industry through 2021. At the heart of this transformation was...

Specials Year Enders
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2021/12/31/img_31122021_122613_800_x_800_pixel.jpg?itok=j-sxZ0dx
#Retrace2021: From Nykaa's Falguni Nayar to dentsu veteran Ashish Bhasin, who all made news in 2021?

Mumbai: The year that began with the slowdown of pandemic cases, and phased opening of businesses across the country, is ending with another Covid variant rearing its head. The new cases of Omicron are spreading faster, even as the industry struggles to hold on to its post-pandemic revival after...

Specials Year Enders