The media and entertainment (M&E) industry grew by 9.1% in 2016, reaching Rs 1.26,210 lakh crore, according to the FICCI-KPMG Media and Entertainment Report 2017. The Indian media industry M&E has maintained a growth rate of 11.6% over the past few years. five years thanks to solid economic fundamentals, combined with growth in domestic consumption, has helped despite the slowdown in the global economy.
The report indicates that although demonetization had a negative impact on the performance of the media and entertainment sector in the third and fourth quarters of 2016, the impact is likely to be short-lived and normality is expected to return in the second quarter of the year. calendar year 2017.
The long-term factors driving future growth are expected to remain positive, with rising rural demand, growing digital access and consumption, and the expected culmination of the digitalization process from TV disruption over the next two to next three years.
Digital advertising continued to be the fastest growing sector at 28%, partly due to its small base and also due to rapid adoption of digital innovations in advertising and marketing by all brands . Films had the lowest growth rate at 3%, followed by print media at 7% and television at 8.5%.
Television saw the slowest growth in 2016 at 8.5% to Rs 58,830 crore. This was due to weak subscription revenue growth and demonetization which impacted ad revenue growth.
Print revenue growth rates continued to register a slowdown after growing by 7% to Rs 30,330 crore in 2016. As in previous years, regional language newspapers continued to grow, while English newspapers have come under pressure.
Digital advertising continued to grow to reach Rs 7,690 crore in 2016, representing a 15% share in the overall advertising revenue pie. He saw a marginal impact due to demonetization. Interest from advertisers has been captured by the continued consumer shift towards digital media due to rapid growth in internet penetration, declining smartphone prices and the launch of Reliance Jio.