SIME sectors has Rs 70,000 cr market value : CII report

Tamil Nadu Chief Minister M K Stalin today released a CII Report which forecast that the South Indian Media and Entertainment (SIME) sector has a market value of about Rs 70,000 crore. The report, titled ‘Regional is the new national – Way Forward for the South India Media and Entertainment Industry’, was released by at the inaugural of the two-day Confederation of Indian Industry’s (CII) Dakshin-South India Media and Entertainment Summit which began here. As per the report, the SIME sector had a market value of about Rs 70,000 crore. The South Indian film industry market is expected to be worth Rs 6,050 crore by the end of 2022 with a compounded annual growth rate of 13%. The South Indian print industry market’s worth would be Rs 9,900 crore by 2022, with radio, digital, OTT and music following close behind, it added. With a compound annual growth rate of 25%, the South Indian streaming and digital media market was expected to be worth ₹16,200 crore by end of 2022, nearly two-and-a-half times the film revenues, the report said. The emerging 5G technology would open up even more opportunities for growth in South India, allowing it to serve a global market with enormous business potential, the report said. The report said the SIME industry has made a post-crisis come back, with current growth rate at a CAGR of 15%. The industry, which is current valued at Rs 749 billion, anticipates promising growth due to a variety of factors. The TV sector is the largest in the M&E sector, accounting for more than 35% of the total M&E market. The TV platform has evolved overtime in response to consumer preferences and it has firmly established itself as the most powerful medium of mass communication, ensuring its continued presence and potential for relevance in the face of advanced technological developments. With the onset of the pandemic, the streaming and digital media industries have experienced a massive boom. With increased internet penetration, smartphone availability and higher per capita income, this sector is expected to grow at a CAGR of 25 per cent. This industry’s revenue streams are primarily comprised of advertisements and subscriptions. Noting that southern films have performed exceptionally well on OTT platforms and are among the most watched films in Indian cinema, the report said rising social media penetration has also aided the sector’s growth. With the upcoming introduction of the Metaverse, this sector is expected to show the most promising growth. Noting that AVGC is the fastest growing sector in the South Indian M&E industry with a CAGR of 30%, the report said it was expected to account for up to 10% of the overall M&E sector by 2030, thanks to various government policies, which have boosted the industry and allowing it to navigate the pandemic’s stringent constraints. Increased digitization ensures that the demand for AVGC products rises. However, rising market demand must be met with additional skill development, which necessitates more focussed initiatives. Observing that the South Indian Film industry produces the majority of country’s film release, the report said more than half of the films released in the last year were in one of the four south indian languages. The South Indian Film Industry has also produced some of the most successful box office hits in recent years. COVID-19 had a significant impact on the industry, shifting viewers away from theatres and toward OTT platforms. However, as things have returned to normal with more frequent theaterical releases, the shift has slowed. The distinctive storytelling and the elegance of craft in south Indian films have garnered global attention and will continue to draw large crowds to the theatres, the report said

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