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According to the FICCI-Pricewaterhouse Coopers report, the Indian media and entertainment industry is expected to achieve an overall value of INR 1 trillion by 2011, growing at a CAGR of 18 per cent from its present value of INR 437 billion.
The key drivers for the industry will include increasing demand, technological innovations, the enterprise of private companies and the policy initiatives taken by the government to boost the inflow of investment
The report listed the key drivers for print media growth as the booming Indian economy and the increasing requirement for content and inflow of foreign investment. Rising literacy rates have resulted in newspapers and magazines being read by an increasing number of rural and urban Indians.
According to current estimates, the print media reaches 222 million Indians. This media is also the maximum investment focus of global investors. However, the print media has not yet fully explored its substantial growth potential since it is yet to target 369 million Indians.
The Internet advertising industry is expected to grow from its present value of INR 1.6 billion to INR 9.5 billion in 2010 at a CAGR of 43 percent. Table 1 highlights the 2011 projections of various Media and Entertainment industry segments.
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In 2006, adspends grew exponentially by more than 23 percent over the previous year’s spends to INR 163 billion as against a growth of 14 percent. The report said, “While today the low adspends may seem like a challenge before the M&E industry, it also throws open immense potential for growth. This potential can be estimated by the fact that even if India was to reach the global average, advertising revenues would be at least double from the current level of around INR 163 billion”.
In 2006, as many as 13 proposals for FDI in media were approved by the Information and Broadcasting Ministry; another 22 proposals are currently under examination. Of these, eight proposals were for news and current affairs. Over the past three years, foreign investment in the industry has crossed INR 4 billion.
In the same year, CAS was implemented in select areas in Delhi, Mumbai and Kolkata. It also marked the entry of the private DTH provider Tata Sky and MTNL’s launch of IPTV in Mumbai and Delhi. These distribution platforms are expected to increase the subscriber base and the subscription proceeds. In fact, these are expected to be the primary factors that fuel the growth of the Indian TV industry over the next five years. Subscription rates and the number of pay TV households are also expected to increase, thus enhancing
subscription revenues. The resilience of the Indian economy will compel homes in rural and urban (two-TV homes) areas to buy TVs and opt for paid subscriptions.
Until 2006, it is estimated that 32 million Indians had Internet exposure and 59 million Indians were computer-literate. As a result, Internet advertisers perceived them as potential targets. Currently, Internet advertising stands at around INR 1600 million, which is projected to grow even further. In fact the Internet-using population is expected to reach at least 35 million by 2008. The main contributory factor for this rise has been the availability of improved speeds at cheaper rates due to an increase in the number of broadband connections.
The increasing use of innovative technologies by the Indian film industry has enabled it to make significant progress in all aspects of film-making such as production, exhibition and marketing. The industry has also witnessed greater corporatisation in 2006 with more than 50 percent films released by corporates. In fact, not only has there been an increase in the number of digital cinema theatres set up in the country, the number of theatres being converted to multiplexes is also increasing. |
