PWC predicts double digit growth for entertainment and media industry

Indian Entertainment and Media industry is expected to return to double digit growth in 2010, says a report by PricewaterhouseCoopers (PWC).

New Delhi: The Rs 584 billion Indian Entertainment and Media industry is projected to grow by 8.3 percent in 2009 as compared to 10.3 percent in 2008 and 16.7 percent in 2007. But it is expected to return to double digit growth in 2010, says a report by PricewaterhouseCoopers (PWC). "The slowdown in growth requires the E&M industry to revisit their short term business plans and strategies. However, double digit growth is expected to return over the forecast period with India recording one of the highest growth in the E&M industry, as well as in advertising spending in the world, along with China," said Timmy Kandhari, leader India Entertainment and Media practice, PWC, in a statement.

After a growth of around 16.6 percent from 2004 to 2008, growth in the E&M industry is set to decelerate to 8.0 percent this year. And this is largely due to the curtailed budget for advertising, which is expected to grow only 9.2 percent in 2009 after having posting a CAGR (Compound Annual Growth Rate) of close to 17.3 percent in the last four years. The report predicts growth rates to increase in 2010 to 10.4 percent as economic conditions are expected to gradually improve. The industry will continue to grow at increasing rates and there will be an overall compound annual growth rate for the period 2009-13 of 10.5 percent. The 2009 edition of the PWC report "Indian entertainment and media outlook 2009" predicts a healthy growth in all eight segments of entertainment and media industry in next five years (2009 to 2013). These are television, filmed entertainment, print media comprising newspaper and magazine publishing, radio, emerging segments like music, animation, gaming, internet advertising, out-of-home advertising and sports. Television is projected to be a major contributor to the overall industry revenue and is estimated to grow at a stable rate of 11.4 percent cumulatively over the next five years, from an estimated Rs. 244.7 billion in 2008. The overall television industry is projected to reach Rs.420 billion by 2013. India`s film industry will grow at a CAGR of 11.6 percent over the next five years, reaching to Rs.185 billion in 2013 from the present Rs.107 billion in 2008, the report predicts. Print media will grow by 5.6 percent and will reach to Rs.213 billion in 2013 from the present Rs.162 billion in 2008, while radio advertising will see 18 percent growth reaching Rs.19 billion in 2013 from the present Rs.8.3 billion. The report also predicts growth for music industry, which has been the major victim of piracy. The key growth driver for the industry will be digital music, and its share is expected to move from 16 percent in 2008 to 60 percent in 2013. Within digital music, mobile music will continue to increase its share and maintain its dominance. With growing internet users, online advertising is also expected to grow. The report says internet advertising will grow by 32 percent over the next five years and reach an estimated Rs.20 billion in 2013 from the present Rs.5 billion in 2008. The share of the online advertising too is projected to grow from 2.3 percent in 2008 to 5.5 percent in 2013 of the overall advertising pie. Throwing light on Indian advertising spending that was affected by economic slowdown, the report says overall spending is expected to increase from the present size of Rs.216 billion in 2008, to Rs.366 billion in 2013. "Against the backdrop of volatility in advertising spending, we are also experiencing increased fragmentation of media and its audiences. This will result in a structural change in the advertising world with advertising becoming more targeted, interactive and accountable," said Kandhari. IANS