New Delhi: India’s entertainment industry has been growing at a healthy 39% for the last three years on the back of increasing number of TV channels and films, industry body Assocham said in a survey.
“The entertainment industry is amongst the highest growing sectors as its top line growth has taken place at a unprecedented growth rate of 39% in the last three years surpassing the average growth rate of services sector at 17%,” Assocham said.
However, a higher growth rate could also attributed to the smaller size of the entertainment industry currently pegged at Rs12,530 crore as compared to services being about $500 billion (Rs2,360,750 crore) industry.
The sector’s growth has resulted into an increase in its advertising spend and a rise in expenditure on employees salaries, the study said.
“With the equally lucrative profit growth track record, the entertainment industry has been able to beat all other sectors in terms of advertisement spending, accounting for 4.1% of its total expenditure, Assocham president Sajjan Jindal said.
The wages in sector has also risen by about 40% in the last two years, he said.
During 2005-06, the sector was the third highest advertiser, Assocham said adding that “With rise in the advertising expenses, the sector rose to top advertiser position in 2006-07.”
The chamber also said the Rs12,530-crore industry has borrowed huge funds for its expansion in the last few years.
Total borrowings in the entertainment sector have increased by 68% in 2007-08 compared to the last year, it said.