New Delhi: The entertainment and media industry in India is set to touch Rs 1.75 lakh crore by 2016, on the back of continued growth in advertising and increasing consumer spend, according to a joint study by industry body Confederation of Indian Industry (CII) and consulting firm PricewaterhouseCoopers (PwC).
The industry, which was estimated at Rs 80,000 crore in 2011, will grow at 17 per cent compounded annual growth rate (CAGR) between 2012 and 2016, according to the ‘Indian Entertainment & Media Outlook 2012’ report.
“The potential game-changers in the industry would be rising advertising and consumer spend, infrastructure and policy support,” it said.
The Indian entertainment and media industry has been identified as the fastest growing, followed by China (14 per cent), Russia (12 per cent) and Brazil (11 per cent).
The advertising segment, which contributes about 35 per cent of revenue in the entertainment and media industry in India, is dominated by television and print that constitute about 80 per cent of the pie, the study said, pointing out that both the segments will continue to dominate the industry over the next five years.
Rising disposable incomes, coupled with macroeconomic stability, will also drive rapid growth in consumer spend in the industry, the study said.
“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 the growth,” said Smita Jha, leader (entertainment and media practice) at PwC India.
However, the study also pointed out that the growth largely came from the escalating internet segment, which has the potential to outshine the print sector by 2014.
“We expect that entertainment content being accessed through different media, and innovation in digital content will drive the advertising spend,” said a statement by CII.
Consumers primarily spend on television subscription, film admissions and print circulation, the study noted. However, the average annual spend per capita in India is just $7, while it is $22 in China and $65 in Brazil, it said. These figures, again, pale in comparison with that of the UK ($566), US ($477) and Japan ($459).
“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.
In India, internet access and gaming segments have emerged as the fastest-growing at 57 per cent and 33 per cent CAGR, respectively. Gaming, still a small contributor to the overall industry, has been growing due to the rising popularity of mobile and online and social media gaming, the study noted.
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