India’s media and entertainment industry grew at a compounded annual growth rate (CAGR) of 15% during 2006-08 and was, in 2008, a Rs58,400 crore ($12.16 billion) industry, says the annual M&E industry report brought out by industry body FICCI and consultant KPMG. Last year’s edition of the report, which was prepared by PricewaterhouseCoopers, said the CAGR for 2004-07 was 19%.
Even more sobering is the growth projections. While last year’s report projected a 2008-12 CAGR of 18%, this year, the corresponding figure for 2009-13 has come down to 12.5%. That’s a pretty dramatic change in outlook.
The report has also revised projections for India’s advertising industry, whose fortunes are closely interlinked with those of the M&E industry. While last year’s report said the CAGR for 2004-07 was 20%, this year’s report puts the 2006-08 CAGR at 17.1%. That’s small change compared with the slowing in projected growth. CAGR for 2008-12 was projected at 18%, while this year’s report says the industry will grow only at a CAGR of 12.4% during 2009-13. Note how close is the compounded growth rate for the media and advertising industries.
There might be slight differences in methodologies between the PwC and KPMG reports.
Here’s the full sectoral snapshot from the 2009 report (click to enlarge):
Scanning through the 217-page report, here are some quick datapoints.
1) There are now 10 million direct-to-home subscribers in India, and by 2013, this figure is projected to reach 28 million. 10 million is a 150% y-o-y growth, as there were only 4 million subscribers in 2007. Last year, large telcos like Bharti airtel and Reliance joined the DTH bandwagon, which has clearly helped expand the market.
2) In the M&A space, while overall deal volumes dropped in 2008, in the M&E space the number and volume of deals went up. In 2007, there 59 deals were struck, valued at $1 billion, while in 2008, 85 deals happened, at a total size of $1.7 billion. The 12 cross-border deals amounted to $612 million.
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