India entertainment biz: good; could be better: PwC
The Indian entertainment and media industry recorded one of the highest growth rates in the world --at 11.2% in 2010 thanks to a return to over all industry, consumer and advertising spend; but this is less than the 12.4 per cent predicted by PricewaterhouseCoopers (PwC) at this time last year. However PwC predicts a faster growth of 13.2% year on year, that will take the industry from Rs 646 billion to Rs 1199 billion by 2015 in its report ““India Entertainment & Media Outlook 2011”. Television is expected to account for half the total entertainment business by 2015 growing at a CAGR of 14.5%, expanding from an estimated Rs 306.5 billion in 2010 to Rs 602.5 billion by 2015.
The films sector is projected to grow at a CAGR of 9.3 per cent over the next five years, reaching Rs 136.5 billion in 2015 from today’s Rs 87.5 billion.
The print sector is projected to grow by 9.6 per cent over the next five years, reaching Rs 282 billion in 2015 from todays Rs 178.7 billion.
Radio is expected to grow at a CAGR of 19.2 per cent over 2011-15, reaching Rs 26 billion in 2015 from Rs 10.8 billion now.
The music sector is projected to grow at a CAGR of 17.6 per cent over 2011-15, fuelled by mobile value added services, to reach Rs 21.4 billion in 2015 from Rs 9.5 billion in 20 10
The animation, gaming and VFX industry is expected to maintain its pace to grow at a CAGR of 21.4% to Rs 82.6 billion in 2015 from its current Rs 31.3 billion.
Internet advertising too is projected to rebound and grow by 25.5 per cent to reach an Rs 24 billion in 2015 from the present Rs 7.7 billion in 2010. Out of home advertising spend is projected to reach Rs 24.0 billion in 2015 from Rs 14.0 billion in 2010.
“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.” says Marcel Fenez, PwC’s Global Leader, Entertainment & Media Practice, pointing to the urgent need for investment in infrastructure and steps to ensure the affordability of devices.
“The challenge for the Indian industry would be how to make the growth profitable in all its constituents. Favourable government policies will help but the industry does need to look at their own operating model such that sustained investment in the E&M sector becomes possible," adds PwC India Leader (Entertainment & Media Practice) Timmy S Kandhari. Aug 1 2011