FICCI-KPMG-Report-13-FRAMES

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44 The power of a billion: Realizing the Indian dream Advertising mix INR Billion 2009 2010 2011 2012 2013p 2014p 2015p 2016p 2017p English 49 53 57 59 62 66 70 74 79 Hindi 31 37 41 45 49 56 64 73 83 Vernacular 30 36 42 46 51 57 66 75 85 Total 110 126 139 150 162 179 200 222 248 Source: KPMG in India analysis, Industry discussions conducted by KPMG in India © 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. Print sector growth during last five years Source: KPMG in India analysis Accordingly, 2012 witnessed some improvement in circulation revenues which increased by 7.3 percent year on year as compared to only 3.8 percent in 2011. This was achieved through launch of new editions and increase in cover prices of established editions. Going forward, the industry may adopt a differentiated pricing strategy by increasing the price of established editions in mature markets while holding the prices low in case of tier II and III markets or while entering newer markets. Such an approach will enable mature editions to gradually decrease their dependence on advertising revenues. Growth in the previous year was mainly driven by an increase in advertising volumes and circulation revenue. Yield in most markets remained flat or marginally improved and did not have any material impact on the overall growth of the print sector. Overall advertising in the industry has grown 7.3 percent - lower than previous estimate. The english segment faced the roughest weather 7 . While the market for English dailies continues to be tough, the regional and vernacular markets continue to defy gravity and grow on the back of rising literacy and low print media penetration as well as the continued tide of advertisers wanting to spend in these markets. The growth of the overall print industry was, hence, largely driven by Hindi and the vernacular print markets. The Hindi print market grew by 9.8 percent from INR 62 billion in 2011 to INR 68 billion in 2012 and vernacular from INR 63 billion 2011 to INR 69 billion in 2012 respectively 7 . 07. KPMG in India Analysis
The power of a billion: Realizing the Indian dream 45 Long term growth looks promising Print media market (In INR billion) 2011 2012 2013p 2014p 2015p 2016p 2017 CAGR (2012-17) English Market 83 86 90 94 99 104 109 4.8% Advertising 57 59 62 66 70 74 79 6.0% Circulation 26 27 28 28 29 29 30 2.1% Hindi Market 62 68 75 83 92 103 114 10.8% Advertising 41 45 49 56 64 73 83 13.3% Circulation 22 24 26 27 28 30 31 5.6% Vernacular Market 63 69 76 85 94 105 116 10.9% Advertising 42 46 51 57 66 75 85 13.3% Circulation 21 24 26 27 28 30 31 5.8% Total industry size 209 224 241 261 285 311 340 8.7% Source: KPMG in India analysis, Industry discussions conducted by KPMG in India The Indian print industry continues to be a promising long term growth story. However, in 2013 the growth of the industry is expected to be subdued and from mid 2014 onwards it will gradually gain momentum and will be worth 340 billion by 2017 registering CAGR of 8.7 percent 8 . The industry’s future performance will be a factor of the macroeconomic environment stabilising and print players achieving greater operational efficiencies and connecting with readers through delivery of high quality content. The industry is expected to focus on profitable growth by implementing cost control initiatives and adopting technology across key business performance areas such as planning, budgeting, customer relationship management, strategic outsourcing, etc. While leading players have made a head start in this direction, many still have to fully review their existing business models. The inherent advantages of print industry – extensive reach, localisation benefits and ability to create trust and achieve a higher ‘attention span’, are expected to serve as a base for growth and ensure that print continues to be one of the most important platforms for Indian advertisers. By 2017, the print industry is estimated to contribute for 20.5 percent 8 to the Indian M&E industry. 08. KPMG in India analysis, Industry discussions conducted by KPMG in India Key trends of 2012 and sector growth drivers Scale tilting in favour of Hindi and other vernacular print markets Share of English, Hindi and vernacular languages Source: KPMG in India analysis © 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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Music The success of the iTunes mod
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FICCI 2013 143 “ The Amendments t
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11 Technology The power of a billio
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Acknowledgement We acknowledge the
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