Indian Media Sector Set for 13-Percent Growth in 2011

NEW DELHI: The media and entertainment business in India is poised for a 13-percent boost in 2011 to reach 738 billion rupees ($16.5 billion), rising to 1,275 billion rupees ($28.5 billion) by 2015, according to a report from FICCI-KPMG.

The report shows that ad spending in India rose 17 percent this year, accounting for 41 percent of the overall media and entertainment sector. Another key finding is that DTH is seeing tremendous gains in the market, with the sub base rising to 28 million by the end of 2010. The overall TV business grew by 15.5 percent in 2010, with a forecast compound annual growth rate of 16 percent to reach 630 billion rupees by 2015. Television is expected to account for almost half of the Indian M&E industry revenues.

Rajesh Jain, head of media and entertainment at KPMG, said, “The resurgence in advertising, growth in subscription revenues, thrust on digitization, and emerging avenues for content monetization were the key growth drivers for the Indian M&E industry in 2010. However going forward, it will become imperative for media companies to reset their business models and build greater focus on profitability and changing consumer preferences."