NEW DELHI: The Indian media and entertainment industry is expected to grow at a compound annual growth rate of 18% between 2012 and 2017, a new report has predicted, with the spread of digital platforms an important driver.
The India Entertainment & Media Outlook 2013 report from the Confederation of Indian Industry and consultants PricewaterCoopers forecast the sector would be worth more than Rs 2,245bn by 2017.
"This growth is driven by the introduction of cable TV digitisation, continued growth of regional media, continued strength of the filmed entertainment sector, fast increasing new media businesses and transparency," said Chandrajit Banerjee, director general of CII, in remarks reported by the Economic Times.
And Smita Jha, Leader Entertainment & Media Practice at PwC India, pointed to the way forward for businesses. "Industry participants will need to invest in constant innovation that encompasses products and services, business and operating models and most importantly, consumer experience and engagement," she said.
The television and print sectors dominated the industry with a 40% and 22% contribution to industry revenues respectively in 2012, while internet access commanded an 18% share and films 12%.
By 2017, however, the report expected internet access to be in second position with a 22% share. Television will continue to lead, taking 39%, but print will fall back to 15% and film to 9%.
The source of those revenues will also change, noted Livemint, as more consumers take up digital services and start paying more for media content and services. The current 33:67 split between advertising revenue and consumer payments is likely to shift to 28:72 in 2017.
The report highlighted the fastest growing sectors as internet access (30% year on year), internet advertising (29%), gaming (19%), and music (15%), while new licence auctions had given a boost to radio (16%).
Data sourced from Economic Times, CII, Livemint; additional content by Warc staff