Published on 14/03/2019 11:47:30 AM | Source: ICICI Securities Ltd

Media Sector - FICCI Frames 2019 – key takeaways By ICICI Securities

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FICCI Frames 2019 – key takeaways

We attended the media and entertainment industry conference FICCI Frames 2019 – “Global Goes Indian”. Key theme of this year is growing acceptance of Indian content in global markets, competition among global media players to gain access to Indian market through localised content and growth opportunities ahead. Discussions among industry participants indicate that OTT platforms have moved ahead from being just ‘new kid in the town’, gaining wider acceptance and companies are strategizing their future in this digital era. According to EY FICCI Report 2019, the advertising market witnessed ~12.7% growth in CY18 coming out of the shadows of demonetisation and GST implementation, driven by 14% and 34% growth in TV and digital mediums respectively. 


According to FICCI EY report 2019

* Advertising industry is expected to grow at 11%

during CY18-21 with TV advertising expected to grow at 10%. Growth in print and radio mediums is expected to be 3% and 8% respectively whereas digital is expected to lead the growth with 25% ad revenue growth.

* TV industry to grow at CAGR of 9%

during CY18-CY21 on the back of 10% and 8% growth in advertising and subscription revenues respectively. TV advertising revenue grew 14% in CY18 on the back of 15% growth in ad volumes with 50% contribution from FMCG category in total adspends (44% contribution in growth).

* TV households (HH) increased to 197mn in CY18

vs 183mn in CY17, with 5mn addition in free TV HHs and 9mn in pay-TV HHs. Penetration of TV in India increased from 64% in CY16 to 66% in CY18, with 88% of TV HHs digitised as of CY18.

* Print industry is expected to grow at CAGR of 3.4%

through CY18-CY21 on the back of ad growth of 3% and circulation revenue growth of 4%. In CY18 ad revenue grew mere 0.4% with pressure on both ad volumes and yield. Ad volumes were concentrated with top 5 categories contributing 60% to print ad volumes. Circulation revenue grew 1% in CY18 owing to low growth in volumes and flat cover prices.

* Digital media continues to be fastest growing advertising medium

with 34% growth in CY18 to reach Rs154bn ad revenue. Digital subscription revenue grew 262% to Rs14bn. Digital media is expected to grow by 28% CAGR during CY18-21 on the back of 25% and 55% growth in ad and subscription revenue.

* Paid video subscribers grew to 12-15mn in CY18

from 7mn in CY17, however proportion of paying subscribers remained low at 5% of total digital video consumers. Interestingly 200mn consumers accessed digital content through telco data bundles. Paid video subscribers are expected to grow to 30-35mn by CY21 along with 350+mn subscribers accessing OTT through telcos.

* Radio grew 7.5% in CY18

on the back of 3% increase in ad volumes, addition of ad inventory from newly launched stations and non-FCT revenues. Radio medium is expected to grow at 8% CAGR from CY18-21 with increasing importance of nonFCT revenues (digital, activation, events etc.) which contributed ~20% in radio revenues in CY18. 


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