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FICCI-KPMG Report 2014: Indian M&E industry to touch Rs 1785.8 billion by 2018 Digital advertising has shown promising growth in 2013, vis-à-vis 2012, which is about 38.7 per cent, followed by gaming which grew by 25.5 per cent. As for the 2018 prediction, digital advertising is expected to lead the CAGR with 27.7 per cent, followed by radio with 18.1 per cent. The FICCI-KPMG 2014 Report is titled 'The Stage Is Set'. The Indian media and entertainment (M&E) industry has grown by 11.8 per cent in 2013, vis-à-vis 2012, and touched Rs 918 billion. It is expected to touch Rs 1785.8 billion by 2018, with a CAGR of 14.2 per cent. By the end of 2014, the industry is expected to stand at Rs 1039 billion. Additionally, digital advertising has shown promising growth in 2013, vis-à-vis 2012, which is about 38.7 per cent, followed by gaming which grew by 25.5 per cent. As for the 2018 prediction: Digital advertising is expected to lead the CAGR with 27.7 per cent, followed by radio with 18.1 per cent. Gaming and television are expected to register a CAGR of 16.2 per cent each, followed by growth rates of animation and VFX (15.9 per cent), music (13.2 per cent), films (11.9 per cent) and OOH with 9.2 per cent expected CAGR. Print stands last as far as the expected growth is concerned with 9 per cent CAGR. Within TV, subscription revenues are expected to be three times more than advertising revenues, by 2018.
Transcript of Ficci frames 2014
Overall Industry Size
(INR Bn)* 2008 2009 2010 2011 2012 2013
Growth
in 2013
over
2012
2014p 2015p 2016p 2017p 2018p
CAGR
(2013-
18)
Television 241.0 257.0 297.0 329.0 370.1 417.2 12.5% 478.9 567.4 672.4 771.9 885.0 16.2%
Print 172.0 175.2 192.9 208.8 224.1 243.1 7.3% 264.0 287.0 313.0 343.0 374.0 9.0%
Film 104.4 89.3 83.3 92.9 112.4 125.3 21.0% 138.0 158.3 181.3 200.0 219.8 11.9%
Radio 8.4 8.3 10.0 11.5 12.7 14.6 10.4% 16.6 19.0 23.0 27.8 33.6 18.1%
Music 7.4 7.8 8.6 9.0 10.6 9.6 18.1% 10.1 11.3 13.2 15.1 17.8 13.2%
Out of Home 16.1 13.7 16.5 17.8 18.2 19.3 2.4% 21.2 23.1 13.2 27.5 30.0 9.2%
Animation and VFX 17.5 20.1 23.7 31.0 35.3 39.7 13.9% 45.0 51.7 60.0 70.2 82.9 15.9%
Gaming 7.0 8.0 10.0 13.0 15.3 19.2 17.7 23.5 28.0 32.3 36.1 40.6 16.2%
Digital Advertising 6.0 8.0 10.0 15.4 21.7 30.1 40.9 41.2 55.1 69.7 88.1 102.2 27.7%
Total 580 587 652 728 821 918 12.6% 917 1059 1238 1438 1661 14.2%
Source: KPMG analysis and industry discussions
Indian Media and Entertainment : Industry size & Projections
Overall Industry Size
(INR Bn)* 2008 2009 2010 2011 2012 2013
Growth
in 2013
over
2012
2014P 2015P 2016P 2017P 2018P
CAGR
(2013-
2018)
Television 82.0 88.0 103.0 116.0 124.8 135.9 8.9% 152.0 172.0 195.0 221.0 253.0 13.2%
Print 108.0 110.4 126.0 139.4 150.0 162.6 8.7% 179.0 199.0 222.0 248.0 275.0 11.1%
Radio 8.4 8.3 10.0 11.5 12.7 14.6 15.0% 16.6 19.0 23.0 27.8 33.6 18.1%
Out of Home(OOH) 16.1 13.7 16.5 17.8 18.2 19.3 6.0% 21.2 23.1 25.2 27.5 30.0 9.2%
Digital Advertising 6.0 8.0 10.0 15.4 21.7 30.1 38.7% 41.2 55.1 69.7 88.1 102.2 27.7%
Total 221 228 266 300 327 363 10.9% 410 468 535 613 694 13.9%
82
135.9
253 108
162.6
275
8.4
14.6
33.6
16.1
19.3
30
6
30.1
102.2
0
100
200
300
400
500
600
700
800
2008 2013 2018P
Television Print
Radio OOH
Digital Advertising
Source : KPMG analysis and industry interviews
Source: KPMG analysis and industry interviews
Percentage share of Advertising spend by Media
Advertising spends and projections
140 158 169 194 214 245
281 327 395
477
551
632
71 82 88
103 116 125
136
152
172
195
221
253
0
100
200
300
400
500
600
700
800
900
1000
2007 2008 2009 2010 2011 2012 2013 2014P 2015P 2016P 2017P 2018P
Subscription Revenue Advertisement Revenue
Source: KPMG Analysis, Secondary Research
INR Billion
TV industry Size
154
161
191
84% 86%
95%
0%
20%
40%
60%
80%
100%
120%
0
50
100
150
200
250
2012 2013 2018p
TV House holds Paid C&S Penetration of Tv Household %2
INR
Bil
lio
n
Source: KPMG Analysis, Secondary Research
% P
erc
en
tag
e
TV households and C&S penetration of TV households
68 74 69 68
55
31
5 5
5
5 6
19 25 40
60
81 87 91
28 31
34 37
44 56 70 72
75
5
8
9 9
9
9 9
9
10
0
20
40
60
80
100
120
140
160
180
200
2010 2011 2012 2013 2014P 2015P 2016P 2017P 2018P
Analog Cable Digital cable DTH Other Digital
105
119
C&S subscribers by platform
Source: KPMG Analysis, Secondary Research
Note : (1)DTH figures are net of chum
(2) Figures are rounded to the nearest integer and may not add up exactly to column totals
INR Billion
130 139
148 157
165
173 181
125 136 152
172 195
221 253
57
69
87
120
166
191
220
0
50
100
150
200
250
300
350
400
450
500
2012 2013 2014P 2015p 2016p 2017p 2018p
Ad Revenues Sub Revenues
INR
Bil
lio
n
Source: KPMG in India analysis, Industry discussions conducted by KPMG in India
% P
erc
en
tag
e
Broadcaster Industry size
Top Sectors 2012 (% share) 2013 (% share)
Personal Care/Personal Hygiene 13.7% 15.7%
Food & Beverages 14.3% 13.3%
Services 7.2% 8.1%
Hair Care 4.5% 4.7%
Auto 4.5% 4.4%
Personal Healthcare 4.0% 3.3%
Personal Accessories 3.7% 3.1%
Household Products 3.0% 2.9%
Telecom/Internet Service Providers 2.7% 2.6%
Laundry 2.3% 2.6%
Top 10 categories advertising on TV
Source: TAM AdEx, Period: year 2011and 2012, Medium : Based on analysis of Ad volumes in seconds
Advertiser 2012 (% share) 2013 (% share)
Hindustan Lever Ltd 7.6% 8.9%
Cadbury India Ltd 2.4% 2.0%
ITC Ltd 2.1% 2.1%
Reckitt Benckiser (India) Ltd 2.2% 1.8%
Procter & Gamble 1.7% 1.8%
Ponds India 1.4% 1.6%
Colgate Palmolive India Ltd 1.4% 1.3%
Coca Cola India Ltd 1.4% 1.3%
Bharti Airtel Ltd 0.8% 0.9%
L’Oreal India Pvt Ltd 0.9% 0.9%
Source: TAM AdEx, Period: year 2011and 2012, Medium : Based on analysis of Ad volumes in
seconds Copy right reserved with TAM MEDIA REASEARCH PVT LTD
*Note: Smithkine Beecham, bharti Airtel Ltd, and L'Oreal India Pvt Ltd were among st the top 10
Advertisers in 2011 and 2011 as reported by ficci kpmg report 2012 and 2011
Top 10 advertisers on TV
Viewership share by genre - 2013
Hindi GEC ; 30.0%
Regional GEC ; 18.0%
Hindi Movies ; 15.1%
Kids ; 7.5%
Music ; 3.6%
Regional News ; 3.6%
Regional Movies ; 3.4%
Hindi News; 3.3%
Sports; 2.6%
Regional Music ; 1.7%
Infotainment ; 1.2%
English Entertainment;
1.1%
English News; 0.1% Other; 8.6%
AdEx share by genre - 2013
Hindi GEC ; 30.0%
Regional GEC ; 18.0%
Hindi Movies ; 15.1%
Kids ; 7.5%
Music ; 3.6%
Regional News ; 3.6%
Regional Movies ; 3.4%
Hindi News; 3.3%
Sports; 2.6%
Regional Music ; 1.7%
Infotainment ; 1.2%
English Entertainment,
1.1%
English News; 0.1%
Other; 8.6%
Rank Genre Channel
Average GVT
1 Diya Aur Baati Hum Star Plus 9,696
2 C.I.D. Sony 8,944
3 The Adventures Of Hatim Life OK 7,564
4 Jodha Akbar Zee TV 7,391
5 Fear Files Zee TV 7,358
6 Yeh Rishta Kya Kehlata Hai Star Plus 7,330
7 Balika Vadhu Colors 7,066
8 Pyaar Ka Dard Hai Star Plus 6,997
9 Saathiya Saath Nibhana Star Plus 6,882
10 Qubool Hai Zee TV 6,227
Source: TAM; HSM 4+ Week 1 to 52, 2013; Copyright reserved with TAM MEDIA
RESEARCH PRIVATE LIMITED; Any use of TAM data (or derivative thereof) mentioned
herein without express permission of TAM shall be treated as illegal
Top 10 Fiction Serials on Hindi GECs - 2013
Rank Genre Channel
Average GVT
1 DID Super Moms Zee TV 17,114
2 Comedy Nights With Kapil Colors 16,056
3 Indias Best Dramebaaz Zee TV 15,214
4 Maruti Suzuki Dance India Dance-4 Zee TV 15,164
5 Nach Baliye 5 Star Plus 14,945
6 Oral-B DID Super Moms Zee TV 14,691
7 Jhalak Dikhhla Jaa Colors 13,017
8 Indian Idol-Junior Sony 12,475
9 Bigg Boss Season 6 Colors 11,498
10 Bigg Boss Saath 7 Colors 10,799
Top 10 Non-Fiction Serials on Hindi GECs - 2013
Source: TAM; HSM 4+ Week 1 to 52, 2013; Copyright reserved with TAM MEDIA
RESEARCH PRIVATE LIMITED; Any use of TAM data (or derivative thereof) mentioned
herein without express permission of TAM shall be treated as illegal
Rank Movie Channel TVTs
1 Chennai Express Zee TV 19,541
2 Khiladi 786 Colours 10,390
3 Dabangg-2 Star Plus 9,828
4 Son of Sardar Star Plus 9,151
5 Boss Colours 8,644
6 OMG Oh My God Colours 7,777
7 Student Of The Year Sony 7,632
8 Yeh Jawaani Hai Deewani Sony 6,995
9 ABCD (Any Body Can Dance) Zee TV 5,571
10 Aashiqui 2 Sony 5,238
Top 10 Non-Fiction Serials on Hindi GECs - 2013
Source: TAM; HSM 4+ Week 1 to 52, 2013; Copyright reserved with TAM MEDIA
RESEARCH PRIVATE LIMITED; Any use of TAM data (or derivative thereof) mentioned
herein without express permission of TAM shall be treated as illegal
Telugu23%
Tamil27%
Marathi 17%
Bhojpuri 1%
Kannada12%
Bengali 12%
Malyalam 6%
Oriya 1%
Gujarati 1%
Others3%
Source: TAM; All India 4+ Week 1 to 52, 2013; Copyright reserved with TAM MEDIA RESEARCH PRIVATE LIMITED;
Any use of TAM data (or derivative thereof) mentioned herein without express permission of TAM shall be treated
as illegal
Viewership share of regional TV channel
Overall Industry Size
(INR Bn)* 2007 2008 2009 2010 2011 2012 2013
Growth in
2013 over
2012
2014P 2015P 2016P 2017P 2018P CAGR
(2012,17)
Total Advertising 100 108 110 126 139 150 163 8.7% 179 199 222 248 275 11.1%
Total Circulation 60 64 65 67 69 75 81 8.1% 85 88 92 95 99 4.2%
Total Industry Size 160 172 175 193 209 224 243 8.5% 264 287 313 343 374 9.0%
Total News paper
Revenue 148 159 163 181 196 211 230 8.7% 250 273 299 329 361 9.5%
Total Magazine
Revenue 12 13 12 12 13 13 14 4.5% 14 14 14 14 14 0.3%
Total Industry size 160 172 175 193 209 224 243 8.5% 264 287 313 343 374 9.0%
Source: KPMG India analysis and industry discussions
Print Industry Overview
Print Media Market
Size (INR Bn)* 2010 2011 2012 2013P CAGR (2012,17)
English Market 79 83 86 91 5.8%
Advertising 53 57 59 62 5.2%
Circulation 26 26 27 29 7.0%
Hindi Market 58 62 68 75 10.5%
Advertising 37 41 45 50 11.3%
Circulation 21 22 24 26 9.0%
Vernacular Market 56 63 69 76 10.0%
Advertising 36 42 46 51 10.8%
Circulation 20 21 24 26 8.5%
Total Industry Size 193 209 224 243 8.5%
Source: KPMG India analysis and industry discussions
Print Industry : Long term growth looks promising
37% 31%
32% 35%
31% 34%
0%
20%
40%
60%
80%
100%
120%
2013 2018P
English Hindi Vernacular
Print advertising advertisement Volume Language (% share)
Source : KPMG Analysis, industry Discussions
63 65 67 67 67
37 35 33 33 33
0
20
40
60
80
100
120
2009 2010 2011 2012 2013
Advertising Circulation
Advertising and Circulation revenue share
Source : TAM Media Research PVT LTD &
KPMG Analysis, industry Discussions
Film industry performance
Revenue
(INR Billion)* 2009 2010 2011 2012 2013 2014P 2015P 2016P 2017P 2017P
2012-13
(YoY
growth)
CAGR
(2012,17
Domestic
Theatrical 68.5 62.0 68.8 85.1 93.4 102.2 116.9 133.3 146.3 160.2 9.8% 11.4%
Overseas
Theatrical 6.8 6.6 6.9 7.6 8.3 9.4 10.3 11.4 12.0 12.7 9.4% 8.9%
Home Video 4.3 2.3 2.0 1.7 1.4 1.2 1.0 0.9 0.8 0.7 -18.0% -13.0%
Cable &
Satellite rights 6.3 8.3 10.5 12.6 15.1 16.1 18.4 20.9 23.0 25.2 20.2% 10.7%
Ancillary
Revenue
streams
3.5 4.1 4.7 5.4 7.0 9.1 11.7 14.7 17.8 21.0 29.3% 24.7%
Total 83.1 83.3 92.9 112.4 125.3 138.0 158.3 181.3 200.0 219.8 11.5% 11.9%
Titles Release Date Genre Screens Total GBO*
(INR million)
Iron Man 3 26-Apr-13 Action/Sci-Fi/Thriller 1054 667
Fast & Furious 6 24-May-13 Action/Crime/Thriller 828 573
Man of Steel 14-Jun-13 Action/Adventure/Fantasy 706 370
Gravity 11-Oct-13 Drama/Sci-Fi/Thriller 195 363
The Wolverine 26-Jul-13 Action/Adventure/Fantasy 710 281
G.I.Joe: Retaliation 29-Mar-13 Action/Adventure/Sci-Fi 528 230
Thor 2: The Dark World 08 08-Nov-13 Action/Adventure/Fantasy 600 227
The Conjuring 02-Aug-13 Horror/Thriller 128 222
World War Z 21-Jun-13 Action/Drama/Horror 570 177
A Good Day to Die Hard 22-Feb-13 Action/Crime/Thriller 678 124
Top Hollywood films released in India 2013
Video on Demand platforms in India
150 186
237
295
351
416
24
27
31
36
41
47
0
50
100
150
200
250
300
350
400
450
500
2013E 2014P 2015P 2016P 2017P
Wireless connections Wireline Connections
Million Connections
India internet connections 2013(E) – 2018 (P)
India internet vs. TV penetration, 2013(E) – 2018(P)
791
825 857
886 913
938
214 239
295
377
422
494
0
100
200
300
400
500
600
700
800
900
1000
2013 2014P 2015p 2016p 2017p 2018p
Tv Viewers Internet users
Source: KPMG in India analysis
Fig in Million
Mobile internet users in India, 2013(E) – 2018(P)
130
158
202
251
299
353
0
50
100
150
200
250
300
350
400
2013 2014P 2015p 2016p 2017p 2018p
Million users
Million users
Source: KPMG in India analysis
Fig in Million
Percentage spend on mobile internet, 2012-13
43% 45%
57% 55%
0%
20%
40%
60%
80%
100%
120%
2012 2013
Voice Spend Mobile Internet Spend
Mobile Apps
Source: Vserv.mob
India mobile app audience
Overall smartphone usage - Time spent (mins/day)
Source: Nielsen Informate mobile insights 2013
Digital advertising market in India, 2013(E) – 2018(P)
Source: Industry discussions conducted by KPMG in India, KPMG in India analysis
26.7
36.1
47.7
59
73
83.2
3.4 5.1 7.4 10.7
15.1 19.1
0
10
20
30
40
50
60
70
80
90
2013E 2014P 2015P 2016P 2017P
Desktop internet advertising
Mobile advertising
INR in Billion
Digital ad spend split by category, India 2013
Display ad spend mix
Social media ad spend mix in India
Search ad spend mix
The Digital advertising ecosystem
Digital ad spend vs TV ad spend in India, 2013(E) – 2018(P)
136
152
172
195
221
253
30.1 41.2 55.1
69.7 88.1 102.2
0
50
100
150
200
250
300
2013E 2014P 2015P 2016P 2017P
TV Ad Spend
Digital Ad Spend
Linear (TV Ad Spend)
Linear (Digital Ad Spend)
INR in Billion
Source: Industry discussions conducted by KPMG in India, KPMG in India analysis
8.4 10.1
11.5 12.5 13.3 14.1
8.2
10
12.4
15
17
19.6
2.6
3.4
4.1
4.8
5.8
6.9
0
5
10
15
20
25
30
35
40
45
2013E 2014P 2015P 2016P 2017P 2018P
PC and Digital TV
Mobile
Console
Gaming market in India, 2013(E) – 2018(P)
Thank You Source: FICCI-KPMG Indian Media and Entertainment Industry Report 2014
Prepared By: Vaibhav Dalvi
Contact: 9004786586
Email: [email protected]
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