The Indian film industry had a dismal year, growing just 3% in 2016 according to an annual media and entertainment industry report by KPMG.
The accounting firm published its annual assessment on the first morning of the three-day FICCI-Frames conference (Mar. 21-23) in Mumbai.
In a paradoxical year when Disney India decided to close its film production division, yet racked up record numbers on its production “Dangal,” the movie industry expanded slightly from $2.12 billion to $2.18 billion. The report predicts a growth of 7.7% per annum to reach $3.1 billion by 2021.
The fast-growing television industry also stuttered in 2016 due to lower subscription revenues and challenges from digital platforms. It grew 8.5% from 2015’s $8.3 billion to $9 billion in 2016. Growth is predicted at 15% over the next five years with advertising, subscription and domestic consumption all expanding.
The digital advertising sector continues to be the fastest growing sector with revenues rising 28% from $920.4 million in 2015 to $1.17 billion in 2016. Forward growth is predicted at 31%.
The animation and VFX sector is another strong growth area, with 2016 revenues rising to $911 million in 2016, and growth forecast at 17%. Similarly, gaming touched $472 million in 2016, with predicted growth 18%. Music was worth some $187 million in 2016, with growth prospects at 16%.