ENTERTAINMENT IS SHRINKING TO GROW
The KPMG Media and Entertainment Report 2018 reveals the industry inched closer to the ~1,500-billion mark in 2017-18 (FY18). Thanks to a rapidly growing digital user base, the industryclocked a growth of 10.9% in FY18, reaching ~1,436 billion. This had a positive impact on demand across sectors like films, digital advertising, animation and VFX, gaming, and music. The industry did feel the lingering effects of demonetisation, the implementation of the goods and services tax (GST), and the Real Estate (Regulation and Development) Act (RERA), slowing the pace of growth, despite advertising growing at 11.5% year-on-year. The industry is expected to grow at a compound annual growth rate (CAGR) of 13.1% during FY18-23 period, to reach ~2,660.2 billion by FY23
TELEVISION
TV had a some what subdued out in gin FY 18, with ad revenues facing headwinds. Subscription revenues took a hit. The sector grew at 10.3% to reach ~224 billion. Itis expected to grow at a CA GR of12.6%, on the back of growing TV penetration, strong a ddemand, growth in domestic consumption, and major events supported by better distribution real is at ions
Print faced the same challenges as TV but the impact was more adverse, resulting in it growing at 3.4% in FY18 to reach ~318.9billion. Hindi and regional newspapers led the growth (4.2 and 4.6 per cent, respectively), while English papers felt the maximum brunt, growing at 1.5%. The sector is likely to see mu ted growth at 5.9% CA GR due to sluggish growth in English papers and pressure from digital
FILMS
The sector grew at 9.6%, seeing resurgence after some sluggish years. The growth came from the regional language films (Tamil, Telugu, and Malayalam), as Bollywood box-office revenues remained flat. The segment is expected to remain resilient, witha 7.6% CAGR, on the back of strong demand from digital platforms and growing overseas revenues
DIGITALADVERTISING
The segment continues to grow at an aggressive pace as digital inf rain the country improves. The sector grew 35% in FY 18 to reach ~116.3 billion, spur red by increased penetration of mobile phones and inclusion of and adoption by non urban users. Digital adoption will spear head strong growth in digital advertising at 30.2% CAGR to reach ~434.9 billion by FY23
GAMING
The growing penetration of smartphones, falling prices of data, and rising acceptance of digital payments contributed to growth in gaming sector revenues in FY 18. The segment grew 35.1% in FY 18 to ~43.8 billion. Mobile gaming contributed to 89% of gaming revenues in FY 18, while90% of online gamers used smart phones and tablets to play games online