The 18th edition of FICCI Frames commenced today at Hotel Renaissance, Mumbai. With a thoroughly lit, line-up of dignitaries present, the inaugural session quickly made way for the event’s primary session which highlighted the key points and analysis from the KPMG report on the Indian M&E (media and entertainment) industry.
The KPMG report has been an integral part of FICCI Frames and no sooner had this year’s report was made available, the stacks vanished in almost a jiffy.
This year’s report is heavily reliant on the digital medium and is segmented into these highlights:
Digital consumption
Television
Radio
Sports
Theme parks deal volume and value in 2016
Demonetisation
Print
Impact of goods and service tax
Films
LiveEvents
Tax and regulatory
Animation VFX and post-production
In the session discussing the report, Media and Entertainment KPMG India, director, Girish Menon stated that India has shifted from being an ‘attention economy to an engagement economy’, which is why digital is gaining more prominence. The mode allows the creators to analyse the consumer trends and demands in a more effective manner and hence helps content creators in curating more customised content.
The recent arrival of 4G services from numerous telecos has further strengthened medium as even the rural areas are consuming huge amounts of digital content. The advent of Reliance Jio provided a further impetus to the digital boost.
The advertising revenues for television had a steady growth of 11 per cent in 2016 over 2015, however print lacked behind with just 6.3 per cent increase. But again the same picture persisted here as well with digital spearheading the advertising revenue figures with an increase of 28 per cent, which is 15 per cent of the overall revenue.
“The Indian M&E industry is projected to grow at a faster pace of 14 per cent over the period 2016-21, with advertising revenue expected to increase at a Compound Annual Growth Rate (CAGR) of 15.3 per cent during the same period. However, in 2017, advertising revenues are expected to grow at a marginally slower rate of 13.1 per cent due to the lingering effects of demonetisation and initial volatilities arising from GST implementation,” states the report.
The animation industry in India registered a growth of 7.9 per cent year-over-year.
According to the report, “Although animation services have always accounted for a lion’s share of the revenue, animation IP production is fast coming to the forefront growing at a Compound Annual Growth Rate (CAGR) of close to 8 per cent during 2011 to 2016. In 2016, animation intellectual Property (IP) production recorded a year-on-year growth of 8.7 per cent. Though, over the next five years, animation services would continue to dominate the animation industry, the domestic content production would also pick up owing to the growing demand of IPs, new characters and storylines.”
ChuChu TV Nursery Rhymes & Kids Songs continue to be at the apex of the top viewed and animated YouTube channel list with 7,826,147,490 views and 8,453,889 subscribers, followed by CVS 3D Rhymes and Videogyan 3D Rhymes – Nursery Rhymes and Kids Songs.
The VFX Industry, which has become quite an indispensable part of feature films now, has experienced a growth of 31 per cent in 2016. The inflow of VFX work from Hollywood movies has proved to be really fruitful for the Indian industry in a way, as it has a large talent pool of VFX artists. VFX revenues from from international projects continue dominating charts accounting to more than 73 per cent of the industry revenue.
With the VFX quality in domestic projects on an upward surge, the reliability has also significantly increased. Thus, the VFX revenue from domestic projects is projected to grow at a CAGR of more than 31 per cent during 2016 to 2021.
Apart from films, IPs over TV and OTT services are opting for quality VFX, which will open new avenues for the industry.