Thanks to media convergence, the entertainment industry in India is thriving like never before. The Indian Entertainment and Media (E&M) industry is poised to grow at 18% compound annual growth rate (CAGR) to reach Rs.1 trillion by 2011 from its present size of Rs.437 billion,
|Segment||Current Size||Projected Size|
|Television||191 billion||519 billion|
|Filmed entertainment:||85 billion||175 billion|
|Print media||128 billion||232 billion|
|Radio||5 billion||17 billion|
|Music||7.2 billion||8.7 billion|
|Live entertainment||9 billion||19 billion|
|Out-of-home advertising||10 billion||21.5 billion|
|Internet advertising||1.6 billion||9.5 billion|
So, what are the factors driving this growth?
- The great Indian Consumerism: Emergence of Indian middle class, rise in salary levels and highly disposable income are the key factors driving the entertainment industry.
- Media convergence: Indians are embracing new media channels – be it mobile, TV or Internet. With the increasing broadband penetration and growing interest in online games, consumers have opened themselves to new ways of consuming the media (a classic example is Y!’s Dove campaign). Advertisers too are reaching out to consumers in innovative ways too.
- Youth – The average Indian is getting younger and is showing a greater propensity to indulge and entertain himself – Case in point: the total mobile music downloads in Indian markets are valued at 75 million dollars and is expected to grow by 25 per cent in the next year.
- Price: Did you know that the movie tickets in India are the cheapest in the world? Did you know that India is no. 2 (and fastest growing) market for Nokia? As the prices of consumption mode decreases, volume is set to rise.
- And of course, the increasing number of people migrating to west is also driving the growth of this industry.
Anything I have missed?
tags: indian entertainment industry