With an expected share of 43 per cent of media revenues over the next three years, television, hit by fragmentation and buffeted by the emerging Internet, remains the key bet for those who spend on brand building, says a new study.
Industry chamber Assocham’s report titled “India’s Digital Revolution – Impact on Film & Television Sector,” says overall media and entertainment sector revenues will double to Rs 1 lakh crore by 2011-12 from the current levels. TV advertising is expected to grow at 14 per cent year on year over the next three years.
A report from consulting firm KPMG and industry chamber FICCI says TV revenues are expected to grow by an annual 13.5 per cent between 2009 and 2013, compared with the print media’s 10 per cent.
Assocham projects television’s growth at over Rs 52,000 crore in the next three years, from the current Rs 20,000 crore. But that includes subscription, aided by pay TV.
The Internet remains a new, wannabe kid on the block, but a fast-growing one. According to the KPMG-FICCI report, the expected growth in the Internet is around 28 per cent, albeit on a small base.
“It will take five to six years before we can talk of the Internet as a significant advertising medium,” said Sudip Sural head of corporate and government ratings at credit rater CRISIL, saying the current 50 million PCs and 7 million broadband users were a small share.
According to the International Advertising Association, Internet’s share of the advertising pie in India is around three per cent, which compares favourably with some developed markets.