Mumbai: The Indian entertainment and media industry is projected to grow from an estimated Rs43,700 crore at present to Rs1,00,000 crore by 2011, according to a study released by the Federation of Indian Chambers of Commerce and Industry (Ficci) on 26 March.
The report prepared by PriceWaterhouseCoopers and released at Ficci-Frames 2007, Asia’s largest convention on the business of entertainment, projected a growth of 18% a year over the next five years.
“When incomes rise, more resources get spent on leisure and entertainment and less on nececessities,” the report said.
The study has included various segments in the media and entertainment sphere like television, print media, films, radio and music and projected that television industry segment will continue to contribute the largest share.
Television revenues may rise from an estimated Rs 19,100 crore at present to Rs51,900 crore by 2011 implying a 22% cumulative annual growth over the next five years.
As per the report, TV industry attracted subscription revenues of Rs11,700 crore and advertisement revenue of Rs6,600 crore during 2006 and expects subscription reveneus to go up from the number of pay TV homes and rise in subscription fees charged to users.
As per the PWC analysis, print media industry comprising newspapers and magazines is projected to grow from Rs12,800 crore at present to Rs23,200 crore by 2011 owing to booming economy, rising literacy level, growing need for content and government initiatives that have opened up the sector for foreign investment.
The report says the film industry is projected to grow from Rs8,400 crore to Rs17,500 crore by 2011. Advancements in technology are helping the industry in production, exhibition and marketing, it said.
The report is also bullish about radio, which it says is making a comeback in the lifestyles of Indians. The radio industry, cashing in on the FM channels is projected to grow from Rs500 crore to Rs1,700 crore by 2011, implying a 28% cumulative annual growth over the next five years.
“Privatisation of a large number of frequencies will drive growth in this sector. As many as 338 licences were given out by the government for FM radio channels in 91 cities. This deluge of radio stations results in opportunities for content and talent,” the report said.
The report is much less bullish about music industry, which it expects to grow a meagre 4%, from Rs720 crore to Rs870 crore due to issues like piracy and falling prices. However, the digital music segment is expected to perform well.