Mumbai, March 21 (IANS) The Indian media and entertainment industry logged an 11-percent growth in 2010 to touch $14.5 billion (Rs.652 billion) and is projected to expand at a higher rate of 13 percent this year, says a report released by a leading industry lobby Monday.
"While television and print media continued to dominate India's media and entertainment industry, sectors such as gaming, digital advertising and animation grew at a faster rate and show tremendous potential," said the report prepared by consultancy KPMG.
"Overall, the industry is expected to register a compounded annual growth of 14 percent to touch Rs.1,275 billion ($28.3 billion) by 2015," said the report, commissioned by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The full report is scheduled to be released during the FICCI-Frames annual conclave on media and entertainment, scheduled in Mumbai March 23-25 at the Renaissance Powai, with Canada as the partner country.
Key speakers include News Corp's James Murdoch, film makers Yash Chopra, Ramesh Sippi, Vikram Bhatt and Karan Johar, directors Shyam Benegal, Rakyesh Om Prakash Mehra, actor Kamal Hasan, Hollywood director Michael Fink, and a host of Indian media personalities.
Interestingly, the report said, unlike other markets in the world that continued to witness an erosion of the print industry, India saw this sector witness a 10 percent growth and would continue to log a similar expansion over the next five years.
"The key industry highlights are growing potential of the regional markets, increasing media penetration and per capita consumption and increasing importance of new media driven by changing consumption patterns," said FICCI secretary general Amit Mitra.
"Going forward, it will become imperative for media companies to reset their business models and build greater focus on profitability and changing consumer preferences," added Rajesh Jain, head of media and entertainment with KPMG.
Following are the key highlights of the report:
Television:
* Television households to surge to 156 million by 2015
* Digitization and addressability to go mainstream
* Advertising revenues to touch $4.5 billion
* Subscription revenues to touch $9.25 billion
Print:
* Overall print industry to see annual growth of 10 percent
* Revenues to touch $6.9 billion in five years
* Regional print expected to grow at a higher rate of 12 percent
Radio:
* Scale of industry expected to increase manifold
* New regulation expected in regulation and royalty structure
* Industry expected to grow at 20 percent per annum and become profitable
Films:
* Past year challenging for the industry
* Correction expected with multiplexes, research and cost rethink
* Industry expected to grow to $2.9 billion by 2015.
The report also highlighted a strong recovery in advertising spend as a key driver for growth. The advertising spend grew 17 percent to $5.9 billion and accounted for 41 per cent of overall industry size, it said.
Looking ahead, the report said mature players will increasingly look at build scales across the media value chain and explore cross-media synergies.
"In addition, existing foreign players are looking to expand their Indian portfolio and several other are expected to make and entry into India. Inorganic growth is likely to be a preferred route for many of these players," it said
"With increased digitization and accountability, Indian media companies are also expected to generate greater interest from private equity players."