AD INDUSTRY ANALYSIS

OVERVIEW
The Media & Entertainment Industry in India is expected to reach Rs 1,457 billion by 2016 as per the FICCIKPMG report. The industry achieved a growth of 12% in 2011 and is projected to grow at a CAGR of 15 percent over the next five years. The spends on leisure and entertainment are greater than the economic growth, this is a result of favourable demographics and increasing disposable incomes. The Indian Media & Entertainment (M&E) sector is growing rapidly, especially with new age technology and the rapid rise of digital media. Digital media includes cable digitisation, wireless broadband, direct-to-home (DTH), digitisation of film distribution and internet usage. Some of the key factors that have driven the growtb1h of the M&E industry are: rise in digital content consumption, launch of innovative content delivery platforms, higher penetration in tier II and tier III cities, greater reach of regional media and regulatory shifts.

KEY PLAYERS
The media industry can be categorized into the following categories; films, television, music, radio and print. Television remains the dominant medium in this sector. However new media as animation & VFX, digital advertising, and gaming - are fast grabbing a larger share of the market. Radio is estimated to continue at a good growth rate. Print, though on a decline in terms of growth rate, continues to be the second largest medium of this industry. Also, the film industry has witnessed multiple movies go beyond the Rs 100 crore mark in domestic theatrical collections, and Rs 30 crore mark in Cable & Satellite rights. Advertising spends across media amounted to Rs 300 billion in 2011, which was 41 percent of the M&E industrys revenues. Advertising revenues saw a growth of 13 percent in 2011, versus 17 percent witnessed in 2010.

TELEVISION
Valued at Rs 329 billion (US$ 5.76 billion) in 2011, the television (TV) industry is expected to expand at a compounded annual growth rate (CAGR) of 17 per cent through 2011-16 to touch Rs 735 billion (US$ 13 billion), according to report by FICCI-KPMG.

RADIO
The radio industry with around 36 FM radio operators, is estimated at Rs 1,200 crore (US$ 210 million). The Government plans to increase number of private FM radio channels to around 839, from the present 245, through e-auctions starting Dec 2012 over next three years. This plan would cover 227 cities with population of over 0.1 million. All India Radio (AIR) proposes to set up 385 new FM transmitters, under the Twelfth Plan, so as to provide FM coverage to 90 per cent of the population. Currently AIR reaches out to about 41per cent of the population. Digitisation Flourishing DTH, cable digitisation and launch of new digital platforms for content delivery have completely changed the face of media distribution over the last 5 years. These media along with other online platforms have made digital advertising a major player in the market. Digital advertising is expected to grow at a CAGR of 30 per cent during 2011-16. Print Print media is being driven mainly by growth in the regional markets, with an increasing literacy rate in this market. An estimated growth of 10 per cent is anticipated till 2015. Inconclusion: Many aspire to join this industry due to the high visibility and glamour associated with many of the top jobs. The opportunities are many and varied, such as in the areas of mass communication, content development, animation, production and event management.