Media Planning & Buying

OOH will make up only 2% of M&E industry by 2020: EY report

The report titled ’Digital inflection point: Indian media and entertainment’, released at the FICCI-IIFA Global Business Forum in New York, states that the Indian M&E industry is expected to touch USD34.8 billion, witnessing a CAGR of 11.8% over 2016-21

Published

July 19, 2017

M4G Bureau

The Indian Media and Entertainment industry is expected to touch USD34.8 billion, witnessing a CAGR of 11.8% over 2016-21, according to a report titled ’Digital inflection point: Indian media and entertainment’, released at the FICCI-IIFA Global Business Forum in New York.

Amongst the sub-sectors in the Media and Entertainment industry, Digital (which includes Digital advertising, advertising on mobile, OTT, etc.) is expected to register the highest growth at 26% CAGR in the 2016-2021 period. This is followed by organised sector (expected to grow at 16% CAGR), Radio (at 14% CAGR), TV (at 11% CAGR), Music (11% CAGR), films (at 10% CAGR) and Print (at 7% CAGR) respectively in the same period. And OOH segment is expected to contribute ~ 2% each to the total industry by 2020.

Commenting on the report, Ashish Pherwani, Partner – Advisory, Media and Entertainment, EY said, “The Indian M&E sector is at a digital crossroads today. Every segment of the industry, including print, TV, radio, film, experiential marketing and OTT, is being impacted by digitisation, and is showing growth, consolidation and innovation. It presents an excellent opportunity for companies looking at establishing and expanding their presence in the country, and making the most of the India digital growth story”

Leena Jaisani, Assistant Secretary General – FICCI, said “India is home to one of the most vibrant, dynamic and differentiated M&E markets in the world. The Indian M&E industry has adapted and innovated its offerings to cater to the huge and varied demand in each segment of the industry, be it Films, Broadcast, Digital, Animation, Print or Live Events. The Government has been imperative in boosting growth, investment opportunities and facilitating ease of doing business in the industry with initiatives such as single window clearance, favorable tax incentives, policies & regulations in place. Today definitely is the time to invest in Indian Media & Entertainment Industry.”

In 2016, total advertising spend across all segments in India stood at USD 8.18 billion which is estimated to reach USD 16.7 billion in 2020. Print media and TV together accounted for 76.2% of the total revenue from advertising in 2016. Mobile advertising has emerged as the third largest advertising medium in India after TV and print, notes the report.

The report also predicts the subscription market – pegged at USD 9.3 billion in 2016 – will grow to USD 15 billion by 2020.