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FICCI Frames 2018: M&E industry to reach Rs 2 trillion by 2020

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The three-day global convention covering the media and entertainment industry, FICCI Frames, organized by the Federation of Indian Chambers of Commerce and Industry commenced at Grand Hyatt in Mumbai on March 5, 2018.

The convention cover films, broadcast (TV and radio), print media, digital entertainment, advertisement, live entertainment, animation, visual effects, gaming, digital media and new media. The conference began with a keynote by Viacom18 group CEO Sudhanshu Vats on “Media and Entertainment: The force multiplier at the heart of society.”

As per a EY report released in FICCI, India’s creative industry sector, comprising television, film, OTT and several other related industries, had an overall market size of USD 22.5 billion in 2017, and is set to grow to USD 25.4 billion in 2018. Overall, the sector is projected to grow 12% annually to reach USD 31.1 billion by 2020. The digital segment led growth, demonstrating that advertising budgets are in line with the changing content consumption patterns.

Even as the M&E sector is projected to cross USD 31 billion by 2020, Minister for Information and Broadcasting (MIB) Smriti Irani said it is imperative that the country as a whole projected the economic value that the industry lends to the country’s economy.

Here are some of the key highlights:

The M&E sector continues to grow at a rate faster than the GDP growth rate, reflecting the growing disposable income led by stable economic growth and changing demographics.

As per the report, the TV industry grew from INR 594 billion to INR 660 billion in 2017, a growth of 11.2% (9.8% net of taxes).

Advertising grew to INR267 billion while distribution grew to INR393 billion. Advertising comprised 40% of revenues, while distribution was 60% of total revenues.

As far as Print is concerned, it is accounted for the second largest share of the Indian M&E sector, growing at 3% to reach INR303 billion in 2017. Print media is estimated to grow at an overall CAGR of approximately 7% till 2020 with vernacular at 8%-9% and English slightly slower.

The animation and VFX industry has grown significantly over the years, not only supporting the growing Indian M&E sector, but also serving the world. In 2017, the industry grows by 3% to reach INR 67 billion.

The animation sector in India has been growing at a steady pace over the past few years and reached INR 17 billion in 2017, registering a growth of 13% over 2016. It is expected to grow at a CAGR of 11% till 2020.

The Indian film segment grew 27% in 2017 on the back of box office growth – both domestic and international – coupled with increased revenues from sale of satellite and digital rights. All sub-segments, with the exception of home video grew and the film segment reached INR156 billion in 2017. The top 50 films contributed approximately 97.75% of the total net box office collection. Box office collections of the top 50 films grew by 11.60% in 2017.

Digital media has grown significantly over the past few years, and continues to lead the growth charts on advertising. Subscription, which was just 3.3% of total digital revenues in 2016, is expected to grow to 9% by 2020.

“Indian M&E sector reached INR1.5 trillion in 2017 led by digital. With digital subscribers expected to reach 20 million by 2020, has Indian M&E reached its digital tipping point? We now need to re-imagine the future of Indian M&E sector,” Farokh Balsara, partner and M&E leader, EY India was quoted as saying.

The convention was attended by 2000 Indian delegates and 800 foreign delegates encompassing not only the entire world of media, but also industry stakeholders and government policy makers across the world.

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