Media Sector Analysis Report
· Indian media industry is expected to grow at an annual average growth rate of 15% to touch Rs 1457 bn by 2016. The industry comprises of print, electronic, radio, internet and outdoor segments. With the government aggressively pushing in for digitisation of TV, Multi System Cable Operators (MSOs) are expected to lose 15-20 per cent of their subscribers to DTH during the phase one that requires the digitisation of Mumbai, Delhi, Chennai and Kolkata by the end of calendar year 2012.
· There are nearly 148 m television households in India. DTH segment comprises of 45 m homes. Around 60% of the money in television segment comes from the subscriptions of DTH or cable services. The digital subscribers are expected to outdo the analog subscribers by 2013. The players in the electronic media can be classified into a three-link chain. First are the studios (including the animation studios), which comprise the hardware part of the industry, the second are the content providers and the third link comprises the distribution trolleys, which include the cable and satellite channels, multiplex theatres, MSOs and the DTH players.
· In India, the ratio of advertising expenditure to GDP is about 0.4%. This is substantially lower in comparison to the developed economies as well as developing economies. As the Indian economy continues to develop and the media reach increases, the advertising expenditure to GDP ratio is expected to increase over the next 5 years.