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As per latest FICCI‐KPMG report, the Indian Media & Entertainment
industry grew 12% in CY11 to INR1,457bn, a tad lower than the earlier
13% forecast. TV grew well ahead of print (~11% YoY vs ~8%YoY) and will
continue to do so. Even though the ad scenario was challenging in
H2CY11, strong consumption in Tier 2 and 3 cities and fast growing new
media segments triggered double‐digit growth. Ad revenues surged 13%
(8% as per Pitch Madison) in CY11 compared to 17% (28% according to
Pitch Madison) in CY10. We expect subscription revenue to be key
growth driver in CY12. Recovery in ad revenues is likely to be back ended
(in H2FY13) on reversal in interest rates, likely improvement in consumer
sentiment, moderation in inflation, and policy reform (if any).
Indian M&E industry grows 12% in CY11
As per FICCI‐KPMG, the Indian Media & Entertainment industry grew 12% in CY11 to
INR1,457bn. Apart from dominant media segments like TV and print, other forms like
animation, VFX, digital advertising and gaming are growing at a rapid pace. The
domestic advertising industry stood at INR300bn in CY11 and advertising contributed
~41% to total industry revenue.
Subscription revenue to be key growth driver
The TV industry grew ~11% YoY in CY11 to INR329bn. Due to low TV penetration and
the ongoing digitization mandate, we expect subscription revenue to drive TV industry
growth. As per FICCI‐KPMG, the TV industry is expected to post 17% CAGR over CY11‐
16E and the share of subscription revenue in TV industry pie is expected to rise from
65% in 2011 to 69% in 2016. Print industry growth lost pace due to higher newsprint
costs and challenging macro environment which led to reduced ad spends. Compared
to ~10% growth in CY10, print industry grew 8.4% YoY in CY11 to INR209bn. Going
forward, post advent of Phase 3, the radio industry is expected to grow well.
Regional media companies continue to outgrow national peers
In spite of 2011 being a challenging year for media companies, the industry managed
to grow at 12%, primarily due to superior growth amongst regional players. Growth
rates of regional media players have continued to outperform their national peers in
CY11 owing to rising incomes and consumption trends in Tier 2 and 3 cities. National
advertisers have realized the importance of advertising in regional TV channels and
newspapers.
Top picks
ZEE, Hathway Cable & Datacom, Dish TV.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
As per latest FICCI‐KPMG report, the Indian Media & Entertainment
industry grew 12% in CY11 to INR1,457bn, a tad lower than the earlier
13% forecast. TV grew well ahead of print (~11% YoY vs ~8%YoY) and will
continue to do so. Even though the ad scenario was challenging in
H2CY11, strong consumption in Tier 2 and 3 cities and fast growing new
media segments triggered double‐digit growth. Ad revenues surged 13%
(8% as per Pitch Madison) in CY11 compared to 17% (28% according to
Pitch Madison) in CY10. We expect subscription revenue to be key
growth driver in CY12. Recovery in ad revenues is likely to be back ended
(in H2FY13) on reversal in interest rates, likely improvement in consumer
sentiment, moderation in inflation, and policy reform (if any).
Indian M&E industry grows 12% in CY11
As per FICCI‐KPMG, the Indian Media & Entertainment industry grew 12% in CY11 to
INR1,457bn. Apart from dominant media segments like TV and print, other forms like
animation, VFX, digital advertising and gaming are growing at a rapid pace. The
domestic advertising industry stood at INR300bn in CY11 and advertising contributed
~41% to total industry revenue.
Subscription revenue to be key growth driver
The TV industry grew ~11% YoY in CY11 to INR329bn. Due to low TV penetration and
the ongoing digitization mandate, we expect subscription revenue to drive TV industry
growth. As per FICCI‐KPMG, the TV industry is expected to post 17% CAGR over CY11‐
16E and the share of subscription revenue in TV industry pie is expected to rise from
65% in 2011 to 69% in 2016. Print industry growth lost pace due to higher newsprint
costs and challenging macro environment which led to reduced ad spends. Compared
to ~10% growth in CY10, print industry grew 8.4% YoY in CY11 to INR209bn. Going
forward, post advent of Phase 3, the radio industry is expected to grow well.
Regional media companies continue to outgrow national peers
In spite of 2011 being a challenging year for media companies, the industry managed
to grow at 12%, primarily due to superior growth amongst regional players. Growth
rates of regional media players have continued to outperform their national peers in
CY11 owing to rising incomes and consumption trends in Tier 2 and 3 cities. National
advertisers have realized the importance of advertising in regional TV channels and
newspapers.
Top picks
ZEE, Hathway Cable & Datacom, Dish TV.
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