Growing great guns

It's the golden age for the industry and it will only get better, says a FICCI-PwC report.

The Indian entertainment and media industry is poised to become a Rs 1 trillion (Rs 100,000 crore) industry by 2011 and half of this growth will come from television. And while the 2005 calendar year witnessed a Rs 364 billion turnover, the industry's present size (calendar year 2006) is already Rs 437 billion.

The overall industry is expected to grow at 18 per cent compound annual growth rate (CAGR) to reach the Rs 1 trillion figure in 2011. These are excerpts from the latest FICCI-PricewaterhouseCoopers report on the entertainment and media industry. The report will be released formally at FICCI FRAMES 2007, a two-day event that will be held in Mumbai from March 26-28, 2007.

While all segments in the media and entertainment industry have witnessed growth (films, print media, radio, television, music, live entertainment, out-of-home, and Internet advertising), the key reason this time, say experts, is the fact that convergence has played a dynamic role in the development of the industry.

According to Timmy Kandhari, executive director, entertainment and media practice, PricewaterhouseCoopers, "Technological advancements and growing investments from big Indian and foreign companies have contributed to the growing status of the industry."

In secretary general, FICCI, Amit Mitra's view, "Convergence is leading to a number of collaborations between value chain partners to drive new products and services to consumers. "Five years ago, there were no companies in this industry but today companies like UTV, Reliance's Adlabs, Bennett, Coleman & Co. and many other groups have interests across different segments in the entertainment arena," said Mitra.