Media and Entertainment Industry in India

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high growth strides. Proving its resilience to the world, the Indian M&E industry is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenues. It has also entered the league of top five in the world in terms of attracting investment, according to the 13th EY Capital Confidence Barometre report. India ranks fourth, behind United States, United Kingdom and China, and ahead of Germany's M&E sector.

The push for Make in India' is translating into creating a conducive environment for new businesses. The major impact has been on the media and entertainment sector.

According to a recent report by Deloitte, this sector is growing 10% annually over the past five years. The sub- segments of this sector include television, advertising, social media, print, film, radio, music, gaming, animation and OOH, among other smaller sub-sectors.

The sector is expected to contribute the largest share of ad revenue and digital and mobile platforms are all set to become preferred mediums for advertising after TV and print.

The media and entertainment sector has evolved and even though it has many sub- segments, the industry overall is growing at a fast pace. Certain segments of this sector have grown exponentially whereas others have grown at a steady pace

The multiplex industry has seen the highest number of deals in the past couple of years. The top five deals last year were acquisition of MAA Television by Star India for $ 417 million, pre-IPO buyout of Videocon d2h by Silver Eagle Acquisition Corp for $ 273.4 million, merger of Prime Focus and Reliance Mediaworks that was valued at $166.5 million, acquisition of Big Cinemas by Carnival for $11.8 million and buyout of DT Cinemas by PVR valued at $78.1 million, which is yet to get closed.

Digitization has helped to improve the customer experience by improving the viewing quality. Digitization is also leading to segmentation of the television content. Internet has grown significantly from 10 million users to 100 million in a decade and from 100 to 200 million in just three years.