PricewatershouseCoopers (PwC) estimates that over the next five years the Indian entertainment and media industry will grow at the rate of 18%, courtesy positive measures taken by the government. Technological advancement and the entry of large corporates in the business coupled with an increase in the disposable incomes of Indian consumers will also contribute to this growth.
The compound annual growth rate (CAGR) of the entertainment and media industry is at 6.6% globally and this is expected to reach $2.2 trillion by 2012. Over the next five years, Asia Pacific and Latin America will be the fastest growing regions. EMEA (Europe, Middle East and Africa), the second largest market, will expand at a 6.8% CAGR to reach $792 billion in 2012. India is expected to outshine other BRIC countries (Brazil, Russia, India and China) in terms of entertainment and media industry growth.
Over the past few years, India has become the focus of collaboration and investment by many of the world’s leading entertainment and media companies, which are looking to join hands with thriving local players and even at opportunities in local content such as Bollywood. This emphasis reflects not only the growth opportunity but also the comparatively favourable investment climate.
Globally, digital and mobile are driving the growth in the sector. Traditional media segments, however, will continue to dominate revenues, with the exception of recorded music, where digital distribution will surpass physical distribution in 2011, says the PwC report. Digital and mobile distribution comprised only 5% of global entertainment and media industry spending in 2007; these revenues will account for 24% of all growth in the industry over the next five years.
The net generation continues to set the pace and direction of change in the entertainment and media industry. Films, television and publishing attracts maximum global investors in India, says Deborah Bothun, in charge of advisory services at PwC.
6 months ago