INDUSTRY OVERVIEW

The Indian economy is growing and the M&E sector is a reflection of this. The year 2017 saw
India recover from demonetisation only to face the new challenges and opportunities
provided by the implementation of GST. However, the Indian economy continued on its
growth trajectory and so did the M&E sector. Favourable demographics, a rise in consumer
income and a huge demand for knowledge, escapism, sports and news aided the growth of
the M&E sector in the country. The reach of television increased to 64% of India, and with
distribution now largely digitized, this has brought in more addressability. Bucking
international trends, the print and radio segments continued to grow, as well as build their
digital presence. Indian films – both Hindi and regional - grew their international appeal with
several doing well at the global box office.

The below table represent the overall industry size in terms of INR Billion

Source: KPMG in India’s analysis and estimates, 2016–17

Increase in the demand for global content has resulted in growth of the animation, VFX and
post production segment, where India has become known for its high quality and efficient
capabilities. Digital subscription and online gaming are showing signs of exponential growth
– albeit from a small base - on the back of rising per-capital GDP and falling data costs. The
Indian M&E sector now finds itself at its digital tipping point. India is now the second largest
smartphone market in the world, and more than half the country is expected to have access
to affordable broadband by 2020 which could result in over 500mn online video consumers.
Rural and women audiences are expected to grow fastest, which will change the type and
genre of content being consumed. The digital micro-payments ecosystem is also growing
rapidly across both urban and rural markets.
These changes will grow digital content consumption significantly, and this presents M&E
companies, both foreign and domestic, with an exciting opportunity to develop businesses
and cater to the new generation of Indian digital consumers.
The below table shows the graphical representation of the overall industry size in terms of
INR Billion
The composition of Media and Entertainment industry in 2017 depicts that the TV, Print and
Films together contributes to around 80% of the total industry. The Print (Newspaper and
Magazines) media has a share of 22% in total Media and Entertainment industry.
Below graph represent the share of all the mediums in Media and Entertainment industry in
2017
It can be seen from the below graph that M&E sector’s growth in 2017 was led by digital,
film, gaming and events.

If we see the change in the market share over the last 5 years, we can see that the Print
(Newspaper and Magazine) has been increasing at CAGR of 8%.
Print Media Market Analysis –
According to a IRS(Indian Readership Survey), Dainik Jagran and Times of Indiaretained their
top slots in Hindi and English daily categories respectively. Meanwhile, Dainik Jagran has a
total readership (last month) of 7,03,77,000 while The Times of India has a total readership
of 1,30,47,000.

URBAN RURAL
2014 2017 2014 2017
47% 53% 22% 31%
15.2 19.3 14.3 21.4
+4 Cr +7 Cr
We tried to estimate the market share of different Newspaper by the readership number.
According to RNI, 488 million circulation of publication is done in 2016-2017. According to
IRS, the readership number of top 20 is given and top ten consist of 65% of readership.

Read in Last 1 Month ALL INDIA

2014 2017
Dailies 31% 39%
Readers in Crores 29.5 40.7@
+11 Cr
Also from IRS, there is 9% growth in total newspaper readership in the last four years.
Among 12+ individuals, the IRS 2017 has recorded last 1 month readership at 104 crore, up
from 96 crore in IRS 2014.Readership of English dailies has grown by 10% over the last four
years and touched 2.8 crore in IRS 2017 as compared to 2.5 crore in the last IRS. Hindi
readership stands at 17.6 crore in IRS 2017, up 45% from 12.1 crore in IRS 2014.
 Market Share by Readership
Dai ni k Jagran
14.42%
Hi ndustan
32.41% Amar Uja l a
Dai ni k Bhas kar
10.74% Dai l y Tha nthi
2.67% Lokmat
Rajastha n Patri ka
2.76% Mal ayal a Ma norama (Dai l y)
3.25% 9.44% Eenadu
Prabhat Kha bar
3.28% 3.34% 3.70% 4.74%
The Ti mes Of Indi a
Other
9.24%

According to IRS survey, There has been increase of 11 crore reader from the previous 2014
survey. Interesting to notice is to increase in readership number in rural readers, which is
clear by the given tables.
While Times of India does not feature in total readership, it heads the English newspaper
section with a whopping 35% readers opting for TOI, 18% opting for Hindustan Times while
8% opt for The Hindu. This is a clear indication that Hindi newspaper dominate the market
and regional newspaper are growing in stature year by year.

Market Share by English Newspaper

The Ti mes Of Indi a

4.25% 3.96% 3.69% 34.65%
Hi ndustan Ti mes
4.00% The Hi ndu Engl i s h
The Economi c Ti mes
4.82% 4.14%
Mumba i Mi rror
The Indi an Expres s
The Tel egra ph
8.24% The New Indi an Expres s
The Tri bune
Decca n Chronicl e

14.08%
18.18%
Future Prospects –
Print industry witnessed some degrowth in English language advertising and moderate
growth in the Hindi and regional language advertising segments. This was compensated by
growth in subscription revenues as print increased its reader base and, in some cases, cover
prices. 2018 promises to be better, with growth expected at around 10 per cent, given that
there are fve state elections, as well as the run up to the Lok Sabha general elections in
2019.

Estimated Print Media Growth

400

350

300

250

200

150

100

50

0
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