New Delhi: The size of the domestic film industry is likely to exceed Rs40,000 crore by 2010, creating employment opportunities for about six million people who would be engaged in producing 1200 movies in more than 50 languages and local dialects.
According to a blueprint on ‘Development of Indian film and entertainment industry’ brought out by Assocham, the current size of the film industry is estimated at around Rs23,000 crore which is supposed to be the largest in the world. It produces 800 films in languages and dialects and earns nearly $100 million of foreign exchange.
Employment opportunities pushed up
The domestic film industry presently provides direct and indirect employment for nearly 2.5 million people. The country’s diversity and the current boom in the entertainment industry has led to the spawning of nearly 200 broadcast channels, some of which have been launched while others are in the pipeline, awaiting clearances at various levels.
By the year 2008 direct and indirect employment prospects would grow far more than three million skilled and unskilled workforce. Increasing emergence of regional channels, will be the major growth driver which has only been fuelled since the advent of satellite television in the early 90’s.
Growth in domestic music industry pushes demand for jobs in entertainment sector
The Indian music industry is also expected to witness high growth prospects with the domestic music industry being estimated at around Rs7.2 billion. This is expected to grow at 4% cumulative annual growth rate in the next five years, propelling it to levels of Rs8.7 billion by 2010 on an overall basis and an expected growth of 25% in digital music which is likely to be monetized to Rs1.8 billion by 2012.
With increasing popularity of film music there has been growth of other segments like remix and indi pop.
Revenues from TV to grow too
The Chamber has also projected that the television industry revenues are expected to grow from the present size of Rs191 billion to Rs519 billion by 2010, employing over 22% cumulative annual growth in next few years.
Since advent of deregulation in domestic television industry, the going for Doordarshan has been rather tough. Various private satellite channels have emerged as strong competitors. From around Rs5.7 billion in the year 1996- 97, revenues declined to Rs3.99 billion in the year 1998-99.
1999-2000 saw improvement to Rs5 billion largely on account of cricket revenues of Rs1.6 billion. According to Venugopal Dhoot, president Assocham, “Emerging trends suggest that some of the fast growing segments in the domestic industry include music, cable and satellite advertising, animation and FM.”
The domestic music industry was estimated at around Rs1700 million in the year 1999 and is projected to grow around Rs30,000 million by the end of the current year. The export segment is likely to increase from around Rs4000 million to Rs10000 million during the same period. Revenues from the animation segment are also predicted to increase from Rs2,200 million to nearly 4,400 million by the end of the current year.
Indian animation rose to its highest level in 2004 with dominance in the outsourcing arena. An increased number of downloads of games on mobile phones is likely to open new opportunities for video games companies. With wireless uptake in India growing at an explosive 80% CAGR during the past few years, industry players have a new revenue stream and channel for selling their entertainment content.