Indian Media Industry

August 24

The Media and Entertainment industry is one of the fastest growing sectors in India. Poised to grow at a rate of 14% to touch US$ 28 billion by 2015, the sector registered a growth of 11% in 2010 over US$ 14.54 billion in revenue in the year 2009.

It is estimated that the industry will achieve a 13% growth rate in 2011. While television and print continued to dominate the Indian M&E industry, sectors such as gaming, digital advertising, and animation VFX grew at a faster rate and show tremendous potential in the coming years.

Contrary to most other markets in the world that continue to witness an erosion of the print media industry, in India, the sector witnessed a growth of 10% in 2010 and is expected to continue to grow at a similar pace over the next five years.

In 2010, advertising spends grew by 17% to US$ 5.93 billion and accounted for 41% of overall industry size.

Television, in its various forms, remains the 'King' in media in India. Television is gaining more popularity than any other media and the overall path looks to be strong in 2011 and especially for the next few years. The advertisement spends on TV are expected to grow at around 12-14% and the medium will be preferred to other media.

The newspaper market in India has grown at 13% CAGR over the last five years to US$ 3.9 billion in 2010. It will continue on its growth path at an estimated CAGR of around 12% between 2010 and 2013 to reach US$ 5.9 billion in 2013.

The size of the Indian radio industry was at US$ 171.38 million with 250 stations in the year 2009 and is expected to reach a size of US$ 360.32 million with over 700 stations by 2014, says an industry report. In 2011, the radio industry is expected to bank revenues of US$ 226 million, as per the Pitch Madison Media Advertising Outlook 2011.

India is the third biggest Internet market, with over 100 million Internet user base and an average user spends 16 hours a week online. According to Google estimates, 40 million users access the Internet through mobile phones and download 30 million applications. Last year also saw social media gain significant popularity as a marketing and gaming platform. According to estimates, the mobile market in India is currently worth around Rs. 50 Crore, and in India, mobile advertising is still at a growing stage. Mobile advertising has emerged as an integral part of any brand's marketing campaign today. It has become one of the most important engagement tools for brands and aims to fulfill the gap that traditional media has been unable to bridge. With the launch of 3G services in India, mobile value added services (MVAS) including mobile advertising will receive a boost. In the Indian market, since mobile proliferation is much higher than PC penetration, 3G is expected to drive the convergence between mobile and Internet platforms.

The past decade marked the convergence of media and technology; of user generated content, social media and new publishing models that have changed the way of media consumption. These changes in the way media are consumed are being driven by factors such as content pull from telecom service providers due to the 3G launch, emerging gaming platforms and innovation in technological devices such as tablets. Convergence of media, m-commerce and emergence of an app economy are the expected trends likely to emerge. Availability of infrastructure and appropriately pricing content across these new media platforms are expected to be critical success factors for the Indian market.

Fun Facts:

  • More than 800 million people in India now own mobile phones; the number is increasing by 10-15 million every month.
  • There has been a 44% growth in smart phone impressions with 3G network rollouts recently. The country takes the top spot among Asian countries with a 44% share out of the total 4.3 billion impressions a month in the region.
  • A total of 5.8 billion mobile ads were served in India in Q1 2011.
  • There were 88 million active Internet users in 2010.
  • India has 11.21+ million broadband users.
  • Total number of daily newspapers published in India are 390+ with a total circulation of 30,772,000.
  • Indian population on Facebook is approx 22.24 Million (9 March 2011).
  • Every forth Internet user in India has an account on Facebook.
  • Indians buy 99 million copies of newspapers alone every day, making it the second-largest newspaper market in the world after the United States.
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