Indian Entertainment Biz To Grow 13.2 Percent During 2011-15: Report
The Indian biz is growing strong, with the film industry reaching $3 billion by 2015.
NEW DELHI -- The Indian entertainment and media industry is slated to grow at a cumulative aggregate growth rate (CAGR) of 13.2% over 2011-15 to reach 1,199 billion rupees ($26.6 billion) by 2015, according to the report “India Entertainment & Media Outlook 2011” from consultants PricewaterhouseCoopers India.
The report states that the Indian entertainment and media industry recorded one of the highest growth rates in the world, growing at 11.2% in 2010 “largely due to rebound in consumer spend, advertising spend, and most importantly, in the (overall) entertainment and media industry spend.”
But that figure is less than the 12.4 per cent predicted by PwC's report last year for 2010, “a little slower than expected largely due to the downturn in the film segment.”
The Indian film industry saw a drop from 95 billion rupees in 2009 to 87.5 billion rupeesin 2010 while the sector is projected to grow at a CAGR of 9.3% (a revision over last year's CAGR of 12.4%) over the next five years, reaching 136.5 billion rupees in 2015.
But other entertainment segments grew as predicted, with television continuining to dominate the Indian entertainment industry.
Television is projected to command half of the entertainment pie by 2015 estimated to grow at a robust CAGR of 14.5%, expanding from an estimated 306.5 billion rupees in 2010 to 602.5 rupees billion by 2015.
Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 21.4% to 82.6 billion rupees in 2015 from its current size of 31.3 billion rupees.
Strong growth is also predicted for the music business projected to grow at a CAGR of 17.6% over 2011-15, reaching 21.4 billion rupees in 2015 from 9.5 billion rupees in 2010 fuelled largely by demand from the mobile phone market.
“The Indian consumer is yet to reap the benefits of the enhanced digital experience seen in other markets where smart devices and enhanced bandwidth speed prevail. This is an issue highlighting the need for future infrastructure investment and the overall affordability of devices,"PwC Global Leader, Entertainment & Media Practice Marcel Fenez said, looking ahead at the potential for digital consumption.
While there is an overall optimism for the Indian entertainment industry, “favorable government policies will help but the industry does need to look at their own operating model such that sustained investment in the sector becomes possible,” cautioned PwC India Leader Leader – Entertainment & Media Practice Timmy S Kandhari.