India`s entertainment industry growth pegged at 18 percent
Last Updated: Tuesday, September 10, 2013, 18:36
  

New Delhi: With a robust 18 percent annual growth, India`s entertainment and media industry is set to log a turnover of Rs.2,245 billion ($34 billion) by 2017, backed by rising consumer and advertising revenues, says a major industry report.

The size of this industry increased from about Rs.805 billion in 2011 to Rs.965 billion in 2012 with a 20 percent annual growth, despite a slowdown in the broader economy, said the report prepared by the Confederation of Indian Industry and PriceWaterhouseCoopers.

"It is expected to grow further at about 18 percent (compounded annualy) over 2012-2017 and reach revenues of about Rs.2,245 billion in 2017," said the report that is to be formally released Sep 13 at the CII Big Picture Summit here.

"This growth is driven by the introduction of cable TV digitization, continued growth of regional media, continued strength of the filmed entertainment sector, fast-increasing new media businesses and transparency," said CII director general Chandrajit Banerjee.

"We believe that innovation -- faster, better, more efficient, thinking out-of-the-box and within-the-box -- would be one of the game changers in this space," Banerjee added.

Key revenues projections between 2012 and 2017:

-TV market to grow 17.9 percent annually from Rs.383 bn to Rs.872 bn

-Filmed entertainment to grow 12.2 percent annually from Rs.112 bn to Rs.199 bn

-Print to grow 9.3 percent annually from Rs.212 bn to Rs.331 bn

-Radio to grow 15.6 percent annually from Rs.15 bn to Rs.32 bn

-Music to grow 15.1 percent annually from Rs.13 bn to Rs.26 bn

-Gaming to grow 18.8 percent annually from Rs.18 bn to Rs.42 bn

-Internet access to grow 29.8 percent annually from Rs.171 bn to Rs.631 bn

-Internet advertising to grow 29.4 percent annually from Rs.23 bn to Rs.84 bn

With a chapter on the innovation-imperatives in the rapidly-evolving entertainment and media sector, the report says that the Indian businesses, like their peers abroad, will need to raise their game in operational agility and customer insight.

"To achieve it successfully, every participant must invest in constant innovation that encompasses products and services, business and operating models and, most importantly, customer experience and engagement," the report says.

"Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services."

The report notes that factors such as rapid rise of internet usage, high penetration of smart phones, digital advertising, broadband, digital content consumption and regulatory interventions made a significant impact on the entertainment and media industry.

In revenue-share terms, the TV and print segments continued to dominate with about 40 percent and 22 percent share, respectively in 2012. Yet, internet access now commands around an 18-percent share and films around 12 percent.

In 2017, while television will continue to lead in terms of revenue contribution, with a 39-percent share, the share of print and films are likely to decrease to 15 percent and 9 percent, respectively.

But internet access will see its share rise from 18 percent to 28 percent.

"Today, if we take the entertainment and media growth without taking internet access and internet advertising into account, the size increased from about Rs.690 billion in 2011 to almost Rs.795 billion in 2012," says the report.

"It is expected to grow at about 15 percent annually over 2012-2017 and reach revenues of about Rs.1,615 billion in 2017."

IANS


First Published: Tuesday, September 10, 2013, 18:36



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