TN media and entertainment industry to grow by Rs 1500 crore this financial year, says study

Chennai: The Media & Entertainment (M&E) industry in Tamil Nadu is ranked high among the south Indian states and is expected to grow by Rs 1,500 crore this financial year, according to a Deloitte-FICCI report- ‘Media & Entertainment in South India - the Digital March’.

The report which was released on Monday said that Tamil Nadu constitutes over one-third of the South Indian media and entertainment industry and is expected to grow at a slightly higher rate than the other states of the region, with all four media platforms – TV, print, radio and new media -- expected to grow faster in the state.

Currently, Tamil Nadu market accounts for Rs 8,420 crore of the Rs 23,300 crore media and entertainment market in and is estimated to reach 15, 850 crore by 2017. The South India market is poised to grow at a CAGR of 16pc to reach INR 43,600 crore by 2017.

The survey states that this growth will be mainly driven by popularity of vernacular content among the region’s populace and the evolving ecosystem, including endeavors by media vehicles to expand their presence.

South India, driven by a high literacy rate and a sizable vernacular readership base (30% of total readership in India) is one of the strongholds of the Indian print industry. Amongst the four regional states, Tamil Nadu and Andhra Pradesh account for 58 per cent of the total revenue. The report also states that advertising revenue from vernacular print in the region is estimated to grow at twice the pace of that of English, largely driven by local advertisers and increasing focus of national advertiser’s beyond Tier 1 cities. Hence, some of the English players are now launching vernacular dailies to not only consolidate their presence in South India but also partake in vernacular growth, the report adds.

The report also states that in 2013, Tamil and Telugu films together accounted for almost 90pc of the revenue, with the rest being equally contributed by Kerala and Karnataka. While enabling regional media players to reach their target audience, the industry continues to attract national players to explore this growing South market. The market is dominated by television (56%), followed by print (28%) and films (11%). Sectors such as New Media and Radio, though smaller than other mediums, are expected to grow at rates higher than the industry average, given their increasing power of engagement.

South India Media and Entertainment market 2013-2017 – State wise split; E: Estimated

Year                    2013        2014 (E)    2015 (E)    2016 (E)     2017 (E)   CAGR (2013-17)

Tamil Nadu       8,420 cr       9,970        11,800        13,810       15,850        17%

A Pradesh        7,140 cr       8,210         9,620        11,180      12,740          16%

Karnataka        4,340 cr      4,980         5,850           6,780       7,710          15%

Kerala              3,350 cr       3,800         4,380           5,050       5,730          14%

Total               23,300 cr     27,000       31,700         36,800    42,000          16%

Source: Industry discussions and Deloitte analysis Note: New Media has not been included in the state level market size calculations