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Media industry to grow 19% by 2010

The entertainment and media industry in India is poised to grow at 19% compounded annual growth rate (CAGR) to Rs 83,740 crore by 2010 from its current size of Rs 35,300 crore, says the 2005 annual edition of the Ficci-PriceWaterhouseCoopers report, belying the fears of a downturn in the industry following a series of films failing to make a mark at the box office in recent years.

The report on six major industry segments - television, film entertainment, print media, radio and music - has projected the Indian film industry to witness an 18% CAGR, while the television industry is likely to witness a 24% CAGR and the radio grow by 32 % CAGR. 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 study has forecast.

"Two factors that will contribute to the growth of the industry are low media penetration in lower socioeconomic 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 Deepak Kapoor said.

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 CAGR of 50%.

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%. 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% is estimated to grow to Rs 19,500 crore by 2010. A booming Indian economy, growing need for content and government initiatives that have opened up the sector to foreign investment are driving growth in the print media. With the literate population on the rise, more people in rural and urban areas are reading newspapers and magazines today. Also, there is more interest in India among the global investor community.

 

( www.televisionpoint.com)

 
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