News: Indian Media and Entertainment Businesses To Grow At Over 13%

The advancement in technology and the receding price of it is all set to take Indian Media and Entertainment businesses on a pretty impressive growth trajectory. According to the media outlook report released by PricewaterhouseCoopers, media and entertainment industry in India is expected to grow at a compounded annual growth rate of 13.2% to reach a size of Rs 1.19 lakh crore by 2015. The economic upturn in 2010 saw advertising revenues rise and PwC says the Indian industry grew by 11.2%, one of the highest growth rates in the world.

“Buoyant advertisement spends will need to supplement subscription growth for a profitable growth in revenues of the entertainment and media sector in the next five years,” said Timmy Kandhari, leader, entertainment & media practice at PwC India[source]

The print media sector  and radio sectors are expected to grow at 9.6% and 19.2% respectively, during the period leading up to 2015. As the spending on advertising increases, the internet advertising segment is expected to grow the fastest.

The television industry on the other hand, the biggest contributor to the industry,which is largely advertising dependent and is plagued by low average revenues per consumer, is expected to grow to Rs 60,250 crore, a cumulative growth of 14.5% over the next five years. The television industry currently contributes 47% to the media and entertainment industry and its share is expected to rise to 50% by 2015.

As the technology drive sweeps India, the number of multiplexes in India is projected to be doubled by 2015 and this is expected to drive the film industry that has seen a drastic slowdown in the last 2 years. This huge rise in the number of screens coupled with the introduction of some big budget films is expected to drive the growth of the film business to a Rs 13,650-crore industry by 2015.

“The next five years will see digital technologies increase their influence across the industry and rapid change in technologies and consumer behavior will continue across all media and entertainment segments. However, the pace of change will continue to be slower in India as compared to other territories,” the report stated.


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