The Indian media market should reach revenues of US$17 billion by
2012, according to a new study from the media advisory firm, Heernet
Ventures. The study forecasts market growth from an estimated Rs 415.4
billion in 2007 to Rs 766 billion in 2012 (CAGR of 13%).
The last twelve months have been a period of exceptional growth
for Indian media; all sectors (except music and marketing services)
have achieved double digit growth. A large number of new services have
been launched across television (Tata Sky), commercial radio (second
phase of FM licencing) and publishing (Mint newspaper). In addition to
increased corporate investment, leading private equity groups such as
Blackstone and Sequioa Capital have completed their first major
investments in the Eenadu group and Shaadi.com respectively.
The medium term outlook remains excellent with double digit GDP
growth and increasing advertising spend in sectors such as the
automotive industry, telecoms, retail and financial services. In the
longer term, the sector fundamentals are also positive - the sector
will benefit from growing private consumption, urbanisation and higher
literacy. The study forecasts that sectors likely to experience the
strongest growth are Pay TV, online media and radio. In the Pay TV
market, the arrival of conditional access technology in cable
television and the emergence of DTH will ensure that channel and
platform operators can collect subscription revenues accurately for
the first time (CAGR 2007-2012 of 16.8%). In online media, Internet
reach will increase rapidly from its current level of 4% of the
population; this should drive revenue growth at CAGR of 29.2% through
to 2012.
This is the third edition of Heernet Ventures' Indian Media Market
report; it provides an in-depth strategic and financial assessment of
the current state of the industry and its future prospects. The report
is essential reading for companies and private equity investors
interested in investment opportunities in India's media sector.
The report includes: the investment case for the Indian media
market; in-depth profiles and 5 year forecasts for all sectors
including television, newspapers, magazines, radio, outdoor
advertising, business media, online media; and an exhaustive review of
all foreign investment into the Indian media sector since 2000. The
report also contains detailed profiles of over 40 leading Indian media
companies (including Adlabs, CyberMedia, Deccan Chronicle, Dish TV,
Hathway cable, HT Media, India Today group, Indian Express, Info Edge,
Inox Leisure, Jagran Prakashan, Malayala Manorama, Mid-day Multimedia,
Nimbus, Shringar Cinemas, Sony Entertainment Television, Star TV, Sun
TV, Tata Sky, UTV, Wire and Wireless India and Zee Entertainment).
Heernet Ventures is a leading media advisory firm; it is currently
working with a number of media companies on their India strategy. More
details on the report and how to order are available at
www.heernet.com.
