The Hindu Business Line : `Entertainment industry likely to grow at 18% CAGR by 09'

According to the FICCI-PricewaterhouseCoopers report, the industry is expected to outperform the growth in economy by a significant margin in the coming years.

And convergence of technologies is the way forward. The study points out that the Indian entertainment industry is experiencing a major shift in the way entertainment is distributed, with new distribution channels, such as broadband, Internet access and wireless communications, driving significant growth in the industry.

Mr Deepak Kapoor, Executive Director and Leader for PricewaterhouseCoopers' Entertainment & Media Practice in India, said: "Technology will drive it into the next decade. Its boundaries will be merged with those of the telecommunications and information technology segments, giving rise to a host of value added features for the consumers, and new revenue streams for the players in each segment. Mobile entertainment, with its ability to dissect the boundaries of time and space, will be the biggest growth driver."

"Digitalisation is the future of the film and television industry. It will define the content formats and the viewership patterns of the consumers in the future and will make available faster and cheaper modes of delivering content," said Mr Yash Chopra, Chairman - FICCI Entertainment Committee.

The film industry will witness growth of multiplexes. Digital cinemas, satellite television and the emerging Home Video segment are expected to be the new distribution formats which would expand the market to over Rs 12,900 crore in 2009.

The broadcasting sector would continue to boom with new channels and new content formats such as reality shows. This segment is projected to grow at 18 per cent to reach Rs 30,000 crore by 2009.

The report said that subscription revenues would drive the television segment in the next five years. "In the short-term, subscription revenues will gain primarily from increases in number of cable and satellite households and improved realisations. Thereafter, corrections in the regulatory mechanism will pave way for addressability and growth in digital distribution. Growth in television advertising is expected to outperform the GDP growth by at least 5 per cent in the coming years."

Animation and Gaming are the next emerging segments. Indian animation rose to its highest levels thus far in 2004, with its dominance in the outsourcing arena. Increased number of downloads of games on mobile phones is likely to open new opportunities for gaming companies. "With wireless uptake in India growing at a healthy CAGR of over 80 per cent in last few years, this channel is providing the industry players with a new revenue stream for selling their entertainment content," said Mr Kapoor.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
BPCL planning new marketing initiatives

Big ticket deposits: Private banks doing better

Competition Commission to be super regulator

`Power tools' for media buying

Instant bonding

Toyota Kirloskar eyes 15 pc market share by 2015

SPAR Intl's coop retail outlet in Juhu

`Entertainment industry likely to grow at 18% CAGR by 09'

Movies, TV, music all at a time: LG `MyHomNet' to enable it

Dr Reddy's launches osteoarthritis drug

Marico launches Mediker Plus

Lladro hopes to rake in Rs 50 cr in India

Symphony air-coolers in Kerala