Published by Siraj Syed

Mar 10, 2018

Siraj Syed is the India Correspondent for FilmFestivals.com and a member of FIPRESCI, the International Federation of Film Critics. He is a Film Festival Correspondent since 1976, Film-critic since 1969...

FICCI FRAMES, VII: India’s filmed entertainment sector, 2016-2020E

FICCI FRAMES, VII: India’s filmed entertainment sector, 2016-2020E

EY--Re-imagining India's M&E sector; Ernst and Young Report, released 04 March, 2018, at FICCI FRAMES 18, Grand Hyatt Hotel, Mumbai

Most multilateral agencies see India grow above 7% in the medium-term. While the World Bank forecasts India to grow by 7.5% in both 2019 and 2020, IMF forecasts suggest the growth rate to be 7.4% in FY19 and further increase to 7.8% in FY201. The M&E sector grows with the economy albeit at a higher pace, and its medium- term outlook is bright.

The Indian Media and Entertainment (M & E) sector reached INR1.5 trillion (USD 22.7 billion) in 2017, a growth of almost 13 percent over 2016. With its current trajectory, we expect it to cross INR2 trillion (USD 31 billion) by 2020, at a Compounded Annual Growth Rate (CAGR) of 11.6 percent. Growth was led by the digital segment, showing that advertising budgets were following the changing content consumption patterns of consumers.

Segment growth came from newer revenue streams

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.