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PwC: Indian media and entertainment industry to grow at over 13%
July, 29th 2011

The Indianmedia and entertainment industry is expected to grow at a compounded annual growth rate of 13.2% to reach a size of Rs 1.19 lakh crore by 2015, said consulting firmPricewaterhouseCoopers (PwC) in a media outlook report released on Thursday.

The Indian industry grew by 11.2%, one of the highest growth rates in the world, in 2010 on the back of improved economic conditions and rebound in advertising. "Buoyant advertisement spends will need to supplement subscription growth for a profitable growth in revenues of the entertainment and media sector in the next five years," said Timmy Kandhari, leader, entertainment & media practice atPwC India. He added that digitisation in broadcast space and focus on good content will go a long way in achieving this objective.

Thetelevision industry, which already contributes the largest share of 47% to the industry, is expected to grow to 50% in 2015. This segment of the industry, which is largely advertising dependent and is fighting low average revenues per consumer, is expected to grow by 14.5% cumulatively over the next five years to Rs 60,250 crore.

Marred by a slowdown over the past two years, the film industry is expected to recover and become a Rs 13,650-crore industry by 2015 with help from higher number of screens and big budget movies. According to the report, the number of multiplex screens in the country is expected to double in this period.

The print media sector is projected to grow at 9.6% during the next five years while the radio sector is expected to grow by 19.2% during this period. With the rebound in the overall advertising spends, the internet advertising segment is expected to growth the fastest over this period.

"The next five years will see digital technologies increase their influence across the industry and rapid change in technologies and consumer behaviour will continue across all media and entertainment segments. However, the pace of change will continue to be slower in India as compared to other territories," the report stated.

 
 
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