India’s entertainment and media sector is expected to cross the Rs 1.75-lakh-crore mark by 2016, growing at a compound annual growth rate (CAGR) of 17 per cent, according to a report by CII and PWC.
The industry is also the fastest growing among the top 15 markets in the world, followed by China, Russia and Brazil.
The report said that the potential game changers in this area are going to be advertising spends, consumer spends, infrastructure and policy support.
Advertising spend contributes approximately 35 per cent to the revenues of the E&M industry, but as a percentage of the GDP it is very low.
“We expect that innovation in digital content and it being accessed through different mediums will drive the advertising spend,” the report stated.
It said that though the average annual consumer spend per capita, which includes television subscription, film admissions and print circulation, is low in India, but rising disposable incomes combined with macro economic stability is expected to drive the rapid growth in consumer spends on entertainment and media.
“Working to attain the target of $100 billion in the coming years will not only benefit industry but also create large-scale employment, and help achieve India’s goal of being a knowledge-driven economy through effective media,” said Chandrajit Banerjee, Director-General, CII, said in a statement.
Added Smita Jha, Leader – Entertainment & Media Practice, PwC India, “Increased advertising and consumer spend will take the industry to desired heights. This will be fuelled by technological innovation leading to better quality of media content being consumed. Internet access will be a key enabler in driving growth.”
In 2011, the overall entertainment and media industry is estimated to be at Rs 80,000 crore, an increase of 17.5 per cent over the previous year. The television and print segments were the largest contributors to the industry, accounting for 66 per cent of the total revenue.
Internet access also contributed a significant 14 per cent driven by the increasing adoption of mobile Internet. However, the contribution from the print and film segments has reduced marginally.