BANGALORE: The South Indian media and entertainment (M&E) industry is booming and is expected to grow with a 14 per cent CAGR over the next four years, predicts Ficci-Deloitte report - ‘Media & Entertainment in South India‘.

As per the report, at the end of 2011, the overall M&E market in the four southern states is pegged at Rs 187.5 billion. By the end of 2015, the report says, that the size of the South Indian M&E will cross Rs 321.4 billion.

Television, the most popular media platform in the south is valued at Rs 106.3 billion (57 per cent of overall market) and is projected to grow at a 17 per cent CAGR to reach Rs 198.1 billion by 2015.

Among other sectors, print and films with CAGR of 11 per cent each are expected to grow from Rs 21.1 billion and Rs 56.8 biliion respectively in 2011 to Rs 31.7 billion and Rs 84.9 billion.

Radio, though at a small base, will see the highest CAGR of 20 per cent is expected to double to reach a market size of Rs 6.7 billion in 2015, from Rs 3.2 billion at present, the report says.

The current contribution of the Radio market to the Media mix is low, in line with the trend witnessed in other South Indian languages as well. Tamil and Telugu films dominate the film industry as they together contribute 87 per cent of the industry revenues.

The report says that the media mix is expected to remain constant through FY 2015, with TV leading the way followed by Print, Films and Radio. Tamil and Telugu languages dominate the media market, together accounting for about 70 per cent of the total South Indian media and entertainment market.

In FY 2011, the Tamil market is estimated at Rs 67.70 billion and accounts for 36 per cent of the overall media and entertainment market in the south. Tamil dailies and magazines are popular in the region and hold a 26 per cent share followed by Tamil films, which have a 14 per cent share.

Telugu is the second largest entertainment market in South India. The Telugu market is currently pegged at Rs 57.30 billion and expected to grow at a CAGR of 15 per cent to reach Rs 98.50 billion 2015. It has the potential to become one of the crucial pillars in the South Indian media and entertainment market says the report.

The existing split follows the overall pattern of Television being the most popular entertainment medium followed by Print, Films and Radio.

Telugu films have a stronghold in the South film industry and contribute 43 per cent of the overall film industry revenue. The Telugu film market is poised to grow at 11 per cent from Rs 90 billion in 2011 to Rs 138 billion by 2015.

The Kannada market In FY 2011 is estimated to be Rs 35.20 billion and poised to grow at CAGR of 14 per cent to reach Rs 59.05 billion by 2015. The media split in Kannada follows the established pattern of Television leading the pack with a 58 per cent share.

The demand for vernacular and English dailies and magazines is healthy and the print market is currently estimated at about Rs 12.50 billion and is projected to reach Rs 17.60 billion by 2015.

In FY 2011, the overall Malayalam media and entertainment market is estimated at Rs 27.20 billion and projected to grow at CAGR of 14 per cent to touch Rs 46.20 billion by 2015. The print business is strong in the state with Malayala Manorama is the leading publishing house; it enjoys the fourth highest readership for its daily pan India.

The print business is valued at Rs 11.20 billion and projected to grow at CAGR of 12 per cent to reach Rs 17.50 billion by the year 2015.