FICCI-KPMG-Report-13-FRAMES

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8 The power of a billion: Realizing the Indian dream © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. • ‘Alive’ App enables readers to interact with the print medium. • Increased integration of events with print/radio campaigns ensures on-ground reach. • Barfi combined online apps, college and in mall events, and multimedia appearances in a high recall marketing campaign. • Internet Radio stations: Purani Jeans (retro hits), Club Mix (party tracks) and Sufiyaana (Sufi and ghazals) cater to tastes of niche audiences. • Satyamev Jayate utilized Big data analytics to analyze large volumes of multiformat responses within and post each show, to tailor future shows and leverage data to lobby for change. How can the power of media be harnessed to influence and be an instrument of social change? How do we leverage the people’s trust in media to influence, educate and be change agents for the better of society? How can we develop platforms that enable our audiences to connect with each other and create communities with common causes? • ‘Nirbhaya’ protest and women’s safety campaign across traditional and social media, garners widespread awareness and support. • Satyamev Jayate draws attention to key social issues. • Successful films OMG and Vicky Donor present social themes in an entertaining way. • Press campaigns such as Lead India and Teach India aim to mobilize and empower readers. • ‘Have a Heart’ Radio channel campaign in Mumbai and Delhi aims to promote acts of kindness. 05. KPMG in India Analysis and industry discussions 06. Economic Survey 2012-13 Industry size and projections The overall Indian economy slowed down in 2012 due to both domestic and external factors. Domestically, the monetary and fiscal stimulus provided by the Government of India post financial-crisis led to strong growth in demand and consumption in 2009-10 and 2010-11. However, this resulted in higher inflation and a powerful monetary response that slowed consumption demand. Moreover, corporate and infrastructure investment were also pulled down by the tightened monetary policy as well as the policy bottlenecks. Externally, a slowing global economy weighed down by the continued crisis in the Euro area and uncertainty in the US fiscal policy also increased risks to growth. The Central Statistical Organization’s (CSO’s) estimates indicate a 5 percent growth in real GDP in 2012-13, as compared to a growth of 6.2 percent posted in 2011-12. These factors resulted in a challenging year for the M&E industry, with reductions in advertising budgets across sectors. The Indian M&E industry grew from INR 728 billion in 2011 to INR 821 billion in 2012, registering an overall growth of 12.6 percent 5 . Recent policy measures taken by the government can pave the way for gradual recovery for the Indian economy. With some improvement also likely in the global economy in 2013, the prognosis for the Indian economy looks somewhat better and real GDP growth is expected to be in the range of 6.1 to 6.7 percent in 2013- 14 6 . Given the impetus introduced by digitization, continued growth of regional media, upcoming elections, strength in the film sector and fast increasing new media businesses, the industry is estimated to achieve a growth rate of 11.8 percent in 2013 to touch INR 917 billion. The sector is projected to grow at a healthy CAGR of 15.2 percent to reach INR 1661 billion by 2017. 5 Television clearly continues to be the dominant segment, however we have seen strong growth posted by new media sectors, animation/ VFX and a comeback in the Films (21 percent growth in 2012 over 2011 vis a vis 11 percent per growth in 2011 over 2010) and Music sectors (18 percent growth in 2012 over 2011 vs. 4.7 percent growth in 2011 over 2010) on the back of strong content and the benefits of digitization. Radio is anticipated to see a spurt in growth post rollout of Phase 3 licensing. The benefits of Phase 1 cable digital access system (DAS) rollout, and continued Phase 2 rollout are expected to contribute significantly to strong continued growth in the TV sector revenues and its ability to invest in and monetize content. The sector is expected to grow at a CAGR of 18 percent over the period 2012-2017 5 .
The power of a billion: Realizing the Indian dream 9 Overall industry size and projections Overall industry size (INR Billion) (For Calendar Years) 2008 2009 2010 2011 2012 Growth in 2012 over 2011 2013p 2014p 2015p 2016p 2017p CAGR (2012-17) TV 241.0 257.0 297.0 329.0 370.1 12.5% 419.9 501.4 607.4 725.0 847.6 18.0% Print 172.0 175.2 192.9 208.8 224.1 7.3% 241.1 261.4 285.6 311.2 340.2 8.7% Films 104.4 89.3 83.3 92.9 112.4 21.0% 122.4 138.3 153.6 171.7 193.3 11.5% Radio 8.4 8.3 10.0 11.5 12.7 10.4% 14.0 15.4 18.7 22.7 27.4 16.6% Music 7.4 7.8 8.6 9.0 10.6 18.1% 11.6 13.1 15.3 18.3 22.5 16.2% OOH 16.1 13.7 16.5 17.8 18.2 2.4% 19.3 21.1 23.0 25.0 27.3 8.4% Animation and VFX 17.5 20.1 23.7 31.0 35.3 13.9% 40.5 46.8 54.3 63.1 73.4 15.8% Gaming 7.0 8.0 10.0 13.0 15.3 17.7% 20.1 23.8 30.9 36.2 42.1 22.4% Digital Advertising 6.0 8.0 10.0 15.4 21.7 40.9% 28.3 37.1 48.9 65.1 87.2 32.1% Total 580 587 652 728 821 12.6% 917 1059 1238 1438 1661 15.2% Source: KPMG in India analysis and industry discussions Advertising trends and projections Total advertising spend across media was INR 327.4 billion in 2012, contributing to 40 percent of M&E industry revenues. In the light of continued economic slowdown, advertising revenues saw a growth of 9 percent in 2012 as against 13 percent in 2011 and 17 percent in 2010. 7 Print continued to be the largest beneficiary, accounting for 46 percent of the advertising pie at INR 150 billion. Advertising revenue (INR billion) Overall industry size (INR Billion) (For Calendar Years) 07. KPMG in India analysis and industry discussions 2008 2009 2010 2011 2012 Growth in 2012 over 2011 Continued growth in Hindi and regional print markets backed by rising literacy levels, growing advertiser engagement through activation solutions to leverage the ‘local’ strengths of the medium, and threat from digital platforms still being held at bay, are all assumed to continue to drive ad spends on the print medium. 2013p 2014p 2015p 2016p 2017p CAGR (2012-17) TV 82.0 88.0 103.0 116.0 124.8 8.0% 138.6 156.6 180.1 207.2 240.3 14.0% Print 108.0 110.4 126.0 139.4 150.0 7.6% 162.0 179.0 200.0 222.0 248.0 10.6% Radio 8.4 8.3 10.0 11.5 12.7 10.4% 14.0 15.4 18.7 22.7 27.4 16.6% OOH 16.1 13.7 16.5 17.8 18.2 2.4% 19.3 21.1 23.0 25.0 27.3 8.4% Digital Advertising 6.0 8.0 10.0 15.4 21.7 40.9% 28.3 37.1 48.9 65.1 87.2 32.1% Total 221 228 266 300 327 9.1% 362 409 471 542 630 14.0% Source: KPMG in India analysis and industry discussions © 2013 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
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Acknowledgement We acknowledge the
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FICCI-KPMG-Report-13-FRAMES

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