Mumbai, Mar 8 (IANS): The Indian Media and Entertainment (M&E) industry is estimated to touch Rs.917 billion ($17 billion) - a growth of 11.8 percent - in 2013, according to findings of the FICCI-KPMG Media and Entertainment 2013 report released here Friday.

The report attributes the industry's growth to digitisation, continued growth of regional media, film sector, fast increasing new media businesses and upcoming elections.

The industry grew from Rs.728 billion in 2011 to Rs.820 billion in 2012, registering an overall growth of 12.6 percent, the report says.

It also projects the sector to grow at a healthy Compound Annual Growth Rate (CAGR) of 15.2 percent to reach Rs.1,661 billion by 2017.

"The year 2012 was one of the toughest years in recent times. But it has also been a landmark year for the media and entertainment sector with significant progress in all verticals," said Uday Shankar, chairman of Federation of Indian Chambers of Commerce and Industries' M&E committee.

"The signs are already evident that digitisation will fundamentally change broadcasting, films have scaled-up their ambitions, and radio and print continue to defy global trends," he added.

A key finding of the report notes that television continues to be the dominant segment of the industry. However, it also records strong growth posted by new media sectors, animation and VFX.

Radio is anticipated to see a spurt in growth at a CAGR of 16.6 percent over the period 2012-2017.

Total advertising spend across media was Rs.327.4 billion in 2012. In light of continued economic slowdown, advertising revenues saw a growth of 9 percent in 2012 as against 13 percent in 2011 and 17 percent in 2010, according to the report.

Print continues to be the largest beneficiary, accounting for 46 percent of the advertising pie at Rs.150 billion.