Media Sector- The Sunrise Sector of Indian Economy

With the bar for the Business excellence set high, the Industry is synonymous with innovation and creativity. The Indian M&E Industry, i.e. Media and Entertainment Industry is making high growth strides and proving its resilience to the world. Banking on the technology, the sector has seen tremendous growth in last few years.

The Market Dynamics:

The Sector has seen a growth of 22% in comparison to the 12% last year. By 2020, the Sector is expected to grow at the CAGR of 14.3% and cross $40 billion. The Box Office revenue, which now stands at USD 1.64 billion, is expected to be at USD 2.72 billion with the CAGR of 10.9%. On the other hand, the admissions in the Sector in 2015 were 2.04 billion and are now expected to grow by 6.6% CAGR to be at 2.80 billion by 2020.

The revenue from the Internet advertising will remain the largest sub-component of Internet advertising over the period forecasted. In the year 2015, paid search grew 26.7% YoY with the revenue standing at USD 211 million. This value is seen to be at USD 492 million by the year 2020 with the CAGR of 18.5%. The Online Spending on display adds have grown three fold since 2011 to 2015, standing at USD 200 million in 2015.

India is seen as one among the seven countries that will be achieving the double-digit growth by the year 2020 with the CAGR of 11.7%. The revenue in 2015 stood at USD 3.19 billion and by 2020, is expected to be at USD 5.54 billion.

In a year’s time Nifty Media has given higher return than the Benchmark Index Nifty. Nifty Media has given the return of over 22% as compared to that of Nifty which stands at 11.46%.

The US Impact:

On 14th September, US expressed willingness to have the bilateral investment treaty with India. There have been talks about pushing the innovation and technology in India, targeting the four-fold Jump in the bilateral trade to USD 500 billion in future, which was nearly USD 110 billion in the year 2015. ‘Innovation and technology’ both are the magic words when it comes to the Media and Entertainment sector. The news has inspired sudden buy in the sector, taking it to the heights it has never been.

Today, on 15th September 2016, Nifty Media has yielded the highest return among all the Indices. At present, India is US’ fifth largest FDI investor.

To Name Some:

The Media industry carries the names like TV18, Zee network, and the likes. Below is the sneak peek into a few names of the Sector. The table shows the highest movement in the share price of the stocks today, 15th September 2016:

The chart clearly TV18 share price has seen the highest jump in today’s trade while Eros stands with the least movement. But there is no denying the fact that each one of them have gained today. Despite that, some stocks like PVR, Eros and Inox closed at a red note while Sun TV traded on a new high.

Sun TV has yielded the highest return today while PVR has given the highest return in a year’s time. Den Network, that has been giving negative returns, turned positive today. Zee Entertainment, Inox and PVR have given higher returns in six months as compared to one year.

In the Media Space, consider investing in TV18, Zee Media, Sun TV, Dish TV, NDTV, Jagran Prakashan and HT Media.

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