Economic Recovery will benefit media-entertainment sector: Indian Rating Agency

Indian Rating agency on 11th February stated that economic recovery in the next financial year will benefit the media and entertainment sector. In this backdrop, the rating agency has revised its outlook on the sector from negative to stable for FY'15. It also expects the upcoming elections to contribute an increase in ad-spending in the fourth quarter of current financial year and first quarter of next fiscal.

Referring to print media, the agency said that high newsprint prices due to currency movements along with limited capacity to pass on cost increases to end-consumers could continue to impact the profitability of print media players.

On the TV media, the rating agency said that increasing digitisation of cable TV distribution in FY15 would increase subscription revenue for broadcasters and multi-system operators with reduced dependence on cyclical ad revenue.

It also said the proposed rise in FDI in broadcasting sector, if implemented, could lead to increased investment in the sector.

Source: http://cablequest.org/news/national-news/item/4278-economic-recovery-will-benefit-media-entertainment-sector-indian-rating-agency.html