Media & Entertainment is generally considered as a recession-proof industry. So what will be the impact on advertisement in a slowing economy. Industry experts outlook remains cautious for India. KPMG-Group M forecasts a 8% advertising growth in FY10 while Media Partners Asia (MPA) forecasts a growth of 7.2% in 2009 and 9.3% in 2010 compared to 14.4% in 2008. Pitch- Madison forecasts a marked slowdown to 2% YoY growth in advertising. Advertisement revenues account for 70-80% of the total revenues of the Media and Entertainment industry. High single-digit growth is better than a negative growth seen in other developing countries. Saving grace for the media industry could be higher penetration of DTH but still it would not be significant to offset the softening ad spends.
Interestingly, Star Group, the biggest TV network in India, gets less than 8% of the total broadcasting revenue pie. The Times of India Group, gets less than 10% of the total revenues in print.