Phenomenal growth of print media, TV industry and Internet attributed to rising income levels, government policies
Times of India, Sunday, March 12, 2006
New Delhi — The Indian entertainment and media industry is witnessing a phenomenal growth and is slated to grow at 19 per cent to Rs 83,740 crore by 2010 from its current size of Rs 35,300 crore, according to a study.
The phenomenal growth in the entertainment and media sector can be attributed to economic growth, rising income levels, consumerism combined with technological advancements and policy initiatives undertaken by the Indian government, the Ficci-PricewaterhouseCoopers study has forecast.
"Two factors that will contribute to the growth of the industry are low media penetration in lower socio-economic classes and low ad spends…but efforts to increase it even slightly are likely to deliver much higher results," PricewaterhouseCoopers’ Entertainment and Media practice Executive Director and leader Deepak Kapoor said in a statement.
With an estimated 28 million Indians already hooked on to the internet, internet advertising in India is presently worth Rs 100 crore. With the broadband slowly becoming popular, the segment would show a compund annual growth rate (CAGR) of 50 per cent.
The internet is used for doing transactions, chatting, offering opportunity for the companies to sell their products.
In terms of value though, television would dominate the industry with the size growing three times from Rs 14,800 crore to a whopping Rs 42,700 crore by 2010 with the CAGR at 24 per cent.
Subscription revenues which will be the key drivers for the growth, would increase from the number of pay TV homes and increased subscription rates. New distribution platforms like DTH and IPTV will only increase the subscriber base and push up the subscription revenues.
The print media with current size of Rs 6,800 crore is gradually opening up to foreign investment due to a booming Indian economy, growing need for content and government initiatives. The sector with a CAGR of 12 per cent is estimated to grow to Rs 19,500 crore by 2010.
Radio, the cheapest form of entertainment could see some drastic changes. The government has announced migration to a revenue share regime, permitting foreign investment in the segment and allowing licenses to the private players.
The CAGR of the sector predictably so is 32 per cent and the segment size is forecast to grow four times from the present size of Rs 300 crore to Rs 1,200 crore by 2010, the survey said.
Live entertainment industry, also known as event management, is presently worth Rs 800 crore and is expected to grow to Rs 1,800 crore by 2010 with a combined annual growth rate of 18 per cent.
Outdoor media sites, predominantly owned by small and local players, are likley to evolve in India too in the short-term. The segment is currently worth Rs 900 crore and is expected to grow by 14 per cnt (CAGR) to Rs 1,750 crore.
Music sector, dogged by problems of piracy, could see a revival of sorts with the growth of ‘mobile music’ and licensed digital distribution services. The sector with a size of Rs 700 crore would grow to Rs 740 crore by 2010 with a CAGR of merely 1 per cent, the survey added.