50.Media & Entertainment

The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Thanks to a booming economy, growth-encouraging measures undertaken by the government and rising income levels, the M&E industry, which has various segments such as film, television, advertising, print media and music among others, is set to enter a golden era.


According to a report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and audit firm PricewaterhouseCoopers, the Indian M&E industry is expected to grow at a compound annual growth rate (CAGR) of 18 per cent to reach US$ 23.81 billion by 2012. The television industry in India is currently at its prime, contributing the largest share in the total media and entertainment industry. While India is the third largest cable television market in the world, the penetration level of pay TV is still low, which promises a huge untapped potential for growth.


According to the PWC report, the television industry was worth US$ 5. 48 billion in 2007, recording a growth of 18 per cent over 2006. It is further likely to grow by 22 per cent over the next five years and be worth US$ 12. 34 billion by 2012. Digital distribution platforms such as direct -to-home (DTH) are transforming the industry. Direct-to-Home segment is gearing up for a new phase of TV viewing with digital video recorders (DVRs) or personal video recorders that will free consumers from having to watch television at broadcaster-ordained timetables. "The next level of TV viewing enhancement will have to be around the two-way interactivity that will allow TV viewers a lot more autonomy or freedom, and DVRs will be key enablers of this," says Mr Atul Bindal, President (Telemedia Services), Bharti Airtel.


The study said the number of DTH subscribers would grow cumulatively by 44 per cent every year, over the next five years The Indian music industry, which until recently was overwhelmingly dominated by film music, is now being propelled by non-film music. However, piracy and advent of radio channels which constantly play hit music leading to loss of sales of music, has affected the industry. According to the PwC study, the music industry is likely to grow by 2 per cent over the next five years and will be a US$ 164.56 million industry by 2012.