PINC Research outlook on media and entertainment sector

PINC Research has come out with its report on media & entertainment conference note.

We hosted PINC Media & Entertainment Conference on 28th Feb, 2012. Players from across the platforms of media participated in the event. Sony Entertainment, Industry Experts, Media planners and unlisted players helped us understand better about the Industry scenario and the competitive landscape of the respective segment. The conference clearly elucidated short term apprehensions and integral long term growth story.

Given below are the key highlights of the conference:

Broadcasting- Not a great year but an exception for few: The year started on a positive note, however slowdown in the economy and high inflationary environment resulted in ad budgets being hampered and hence only necessary advertising was done especially for second rung channels and regional players like Sun TV. However, lead channels like Sony Entertainment and Star Plus performed well. TV advertisement registered growth of 9% in 2011. In 2012 Television is expected to maintain a marginal growth rate of 10%.

Print- Regional outperformed English: The Print advertising segment grew at 8% in 2011. The growth rate was down mainly in English press advertising (regional print revenue in double digits, however English Print grew at low single digit rate) which led to slow growth in the entire print segment. Advertisers, specifically from BFSI and telecom spent cautiously on print in the second half of the year. No big IPOs and no big launches impacted the advertising revenues. The entire focus was on regional consolidation with existing players launching new editions into existing and new markets. Print media advertising is expected to reflect a growth of 6% in 2012.

Radio- Bleak performance: Radio advertisements grew marginally by 2% in 2011 owing to lack of innovation in the medium. The only happening factor was Phase III policy announcement by the government. Radio advertisement growth rate in 2012 is expected to be better at 5% mainly because of Phase III.

Outdoor- Blank period: Outdoor advertising revenue fell 10% in 2011 with its share in the total ad pie falling from 6.1% in 2010 to 5.1%. Spends on outdoor have decreased in the major metros but some respite is seen on the back of rising spends in Tier II and Tier III cities. 2012 is expected to see some revival with a modest growth of 5%.

Cinema- Blockbuster year: The segment performed exceptionally well on account of blockbuster releases like

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