E&M industry poised to grow at double-digit pace of 12.4 pc
Mumbai: India`s Entertainment and Media (E&M) industry is poised to log a double digit growth of 12.4 per cent cumulatively over the next five years touching Rs 1040 billion by 2014, according to a report by research
firm PricewaterhouseCoopers (PwC).
"Many of the factors which caused the slowdown in 2009 are not likely to persist. With confidence returning alongside a likely increase in consumer and advertisement spends, the E & M industry is looking to get back to its high growth trajectory," Timmy S Kandhari, Leader Entertainment & Media Practice, PricewaterhouseCoopers India, said in the report
titled `Indian Entertainment & Media Outlook 2010`.
Unveiling the outlook for the industry during 2010-14, he said the television 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 per cent cumulatively over the next five years, from an estimated
Rs 265.5 billion in 2009 to Rs. 488.0 billion by 2014.
The film sector is projected to grow at a Compound annual growth rate (CAGR) of 12.4 per cent over the next five years, reaching Rs 170.5 billion in 2014 from the present Rs 95.0 billion in 2009.
The E&M industry registered one of its slowest growth rates in 2009, growing at a rate of 2.2 per cent. This was largely due to lower than expected uptake in the advertisement spend which registered no growth and hence affected sectors like print, Out of Home (OOH), radio as well as Internet advertising. Negative growth in filmed entertainment also
affected growth in 2009, the report said.
The print media industry is projected to grow by 7.4 per cent over the period 2010-14, reaching to Rs 230.5 billion in 2014 from the present Rs 161.5 billion in 2009.
The Radio advertising industry is projected to grow at a CAGR of 12.2 per cent over 2010-14, reaching Rs 16.0 billion in 2014 from the present Rs 9.0 billion in 2009.
Due to the tremendous uptake of the mobile Value Added Services (VAS) market, the industry is projected to grow at a CAGR of 28.6 per cent over 2010-14, reaching Rs 26.5 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 pc in 2009 to 75 pc in 2014.
Given the trends of increased internet usage, internet advertising is projected to grow by 20.1 per cent over the next five years and reach an estimated Rs 15 billion in 2014 from the present Rs 6 billion in 2009.
The estimated size of Out of home (OOH) advertising spend is Rs 12.5 billion in 2009, which is projected to reach Rs 21.0 billion in 2014. Its share in the total ad pie is expected to go down marginally to 5.6 per cent in 2014 from a current level of 5.8 per cent in 2009.
Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 25.2 per cent to Rs. 73.4 billion in 2014 from its current size of Rs 23.8 billion.
The advertisement spend which registered no growth in 2009 is showing a rebound with increasing business confidence returning to the market as well as with innovative structuring. The spend will grow at 11.4 per cent CAGR for the period 2010-2014.