In its latest report, titled Indian Entertainment & Media Outlook 2010, released towards the end of last month, PricewaterhouseCoopers (PwC) forecasts the Indian Entertainment and Media industry to return to double digit growth. The report predicts a cumulative growth rate of 12.4% over 2010-2014, to touch Rs1,040 billion.
The industry registered one of its slowest growth rates in 2009, growing at a rate of 2.2%, largely due to lower than expected uptake in the advertisement spend.
PwC India leader – entertainment & media practice Timmy S Kandhari said: “Many of the factors which caused the slowdown in 2009 are not likely to persist. The industry is definitely looking to get back to its high growth trajectory.”
Rational regulation, need for addressable distribution platforms, digital transmission, regional as well as differentiated content will be the key to sustainable growth added Kandhari. According to him, spend on digital media in India is not significant at present and is not likely to be significant in the forecast period. “Non-digital (analogue) revenues are important in our market and digital revenues should be considered as a complement,” he said.
“On the global front, consumer experience is driving change very rapidly with consumers embracing new media experiences with staggering speed resulting in increased spend on digital media and a move towards devices,” said PwC global leader entertainment & media practice Marcel Fenez. “The migration to digital varies from market to market,” said Fenez. “Uptake in digital media could be different in a country like India due to local factors around infrastructure as well as affordability,” he added.
Other highlights from the report: Television: The industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 12.9% cumulatively over the next five years, to Rs488 billion by 2014; Film: A CAGR of 12.4% over the next five years, is predicted to reach Rs170.5 billion in 2014; Print media: The industry is projected to grow by 7.4% over the period 2010-14, reaching to Rs230.5 billion in 2014; Radio advertising: A growth rate of 12.2% over 2010-14, reaching Rs16.0 billion in 2014; Music: Due to the tremendous uptake of the mobile VAS market, the industry is projected to grow at a CAGR of 28.6% over 2010-14, to reaching Rs26.5 billion in 2014.
The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 29% in 2009 to 75% in 2014; Internet advertising: Given the trends of increased internet usage, internet advertising is projected to grow by 20.1% over the next five years and reach an estimated Rs15 billion in 2014.