IT spending by the Media and Entertainment (M&E) industry is expected to grow from the current $100 million (Rs 445 crore) to $300 million (Rs 1,320 crore) by 2010. It was around $62 million (Rs 275 crore) in 2005. The market is growing at a compound annual growth rate (CAGR) of 32 per cent. | |
| In its "India's Booming Media & Entertainment Industry: IT Market Trends and Opportunities 2006-2010", Springboard Research data shows an increasing trend among M&E companies to focus on IT solutions. |
| |
| The report revealed that the majority of M&E companies have spent more than $225,000 (approx Rs 1 crore) each on IT in the past 24 months. Around 41 per cent of them have spent more than $700,000 (approx Rs 3 crore) implementing IT solutions during the same period. |
| |
| The findings of the study are based on sampling of 80 M&E companies in India, which includes all the major M&E houses in the country. Almost 47 per cent of the respondents said their largest IT investment was for a technology solution tailored towards the M&E industry. |
| |
| Ishwar Jha, senior vice-president, Business Technology, Zee Entertainment Enterprise (ZEE) agrees, "Unlike in the banking, financial services and insurance (BFSI) segment where the IT vendors are selling solutions to the problems in M&E sector, they are just talking about products." |
| |
| He gives Zee's example, "A few years back when we planned to get our digital asset management systems, it took us eight to nine months to find an IT vendor." |
| |
| The IT budget for Zee is between Rs 10-12 crore for the financial year 2007. A vast majority of the M&E companies Springboard surveyed said, they have either invested or plan to invest the largest portion of their IT budget on industry-specific solutions. |
| |
| Some of the reasons for increase in IT investment are digitisation of content, urgency to reach new markets and increasing competition. |
| |
| "Many Indian M&E firms are looking on investments in technology as a way to more effectively deliver their content to new audiences, especially in the cities and towns outside of the major metropolitan areas," explains Nilotpal Chakravrti, market analyst, Springboard Research. |
| |
|
| |
