Report: India film biz to grow at 12.4 pct rate by 2014
PwC report sees film, television, radio all risingNEW DELHI -- The Indian film industry is expected to grow at a compound annual growth rate of 12.4% over the next five years, reaching 170.5 billion rupees ($3.8 billion) in 2014, compared to 95 billion rupees in 2009 according to PricewaterhouseCoopers' report “Indian Entertainment & Media Outlook 2010.”
Overall, the Indian entertainment and media industry saw a growth of 2.2% in 2009, which was the lowest growth ever, but PwC predicts that the industry will grow strongly at a CAGR of 12.4% and reach 1.04 trillion rupees by 2014.
A de-growth in the film business and other factors such as low ad spends led to an overall weak growth rate in 2009.
PwC India leader, entertainment and media practicee Timmy S Kandhari explained, “Some of the reasons for the film industry not doing well were that not many people went out to theaters to watch films, cost mis-match, the strike (last summer) between multiplexes and distributors, not enough release windows and uninspiring scripts.”
But looking ahead Kandhari added that a growth in multiplexes, coupled with digitization of single screens would benefit the film industry, in addition to a focus on regional content.
Television continues to be the major contributor to the overall pie and is estimated to grow at a CAGR of 12.9% over the next five years, from an estimated 265.5 billion rupees in 2009 to 488 billion rupees by 2014.
While the music industry has struggled in years past, the report now predicts a healthy growth at a CAGR of 28.6% over 2010-14, reaching 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% in 2009 to 75% in 2014.
The animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 25.2% to reach 73.4 billion rupees in 2014 from its current size of 23.8 billion rupees.
The radio industry is projected to grow at a CAGR of 12.2% over 2010-14, reaching 16 billion rupees in 2014 from the present 9 billion rupees in 2009.
“The road ahead looks encouraging. There is a big change now as far as ad spends are concerned, as compared to 2009. Ad spend has come back in good measure. 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,” concluded Kandhari.