Media sector booming on entertainment-savy generation
By Sanket Dewarkar |
4/4/2017 2:20 PM Tuesday
The Indian Media and Entertainment sector is on the apex of a strong phase of growth, as there is rise in consumer demand and advertising revenue is improving.
Prime Minister, Modi’s move towards digitalisation has driven this sector to growth, as Internet has almost become a mainstream media for entertainment for most of the people.
The Indian Media and Entertainment Sector is expected to grow with a CAGR of 14.3 percent by 2020, while revenues from advertisement are expected to grow at 15.9 per cent.
Heavy rise in demand in the society which is transforming itself, showing greater interest in the Entertainment sector, has boosted the production in the M&E sector.
Big names like Cinepolis, a Mexico-based multiplex chain, are going all out on expansion, wherein Cinepolis plans to add 160 more screens by investing around Rs 400 crore in India in the next two years, thereby taking its total count to 400 screens in the country.
Carnival Cinemas, the third largest cinema multiplex chain in India, has partnered with Odisha Government to build 30 entertainment centres or recreation zones over 1-1.5 acres of land in tier-II or tier-III locations of each district.
The Government of India is also taking initiative in training the industry professionals, and has also decided to fund movies including Bollywood and regional films.
Companies like Eros Media, Garnet International, Inox Leisure and Prime Focus have given an average monthly return of 22 percent.
We can see how the rise in the demand has impacted the stock performance in last one month and one year from the below table.
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