Media and Entertainment industry in India

Last couple of years have been a turning point for the media and entertainment industry in India in many ways. With the government's Make In India campaign, business sentiment has been positive and strengthened by a number initiative in the recent months.

India's entertainment economy is growing rapidly, and the world is taking note. The country is among the world's youngest nations, with more than half a billion people under the age of 25. With favourable demographics and a rise in disposable incomes, the propensity to spend on leisure and entertainment is growing faster than the economy itself.

The investors have a great opportunity as the industry is expected to register a CAGR of 13.9%, reaching INR 1,964 Billion in 2019 and India is the world's second largest TV market, after China, with 168 Million TV households. Also, India has a large broadcasting and distribution sector, comprising approximately 7800 satellite TV channels, 6000 multi-system operators, around 60,000 local cable operators, 7 DTH operators and few IPTV service providers.

The Provisions of the 2O15-2O16 Union Budget highlight the potential of the Media and Entertainment industry.

INR 1000 Million has been allocated to encourage the growth of community radio stations.

INR 5000 Million has been allocated for launching a pan-India programme named Digital India and a national rural internet and technology mission for services in villages and schools, training in IT skills and e-kranti for government service delivery and governance scheme.

INR 1000 Million has been allocated for launching a programme to promoting good governance.

Service-tax to be levied on service provided by way of access to amusement facility, entertainment events or concerts, pageants, non-recognised sporting events etc.

The Indian Media and Entertainment industry is on an impressive growth path. The revenue from advertising is expected to grow at a CAGR of 13 per cent. Internet access has surpassed the print segment as the second-largest segment contributing to the overall pie of M&E industry revenues.

Digital advertising is expected to lead the CAGR with 30.2 per cent, followed by radio with 18.1 per cent and growth in the regional reach of print and radio shall provide opportunities to further improve the advertisement revenue.