India's entertainment and media sector is expected to grow steadily over the next five years as per CII-PwC's latest report titled India Entertainment and Media Outlook 2014.
The industry is expected to exceed Rs 227,000 crore by 2018 growing at compound annual growth rate (CAGR) of 15 percent between 2013 and 2018.
In 2013, the overall entertainment and media industry was estimated to be Rs 112,044 crore and grew by 19 percent over the previous year. The largest segment, India's television industry, continued its strong growth momentum led by subscription revenues, representing a year-on-year growth of about 15 percent.
Internet access and internet advertising have been the fastest growing segments with annual growth rates of 47 and 26 percent respectively.
"The key theme of our report this year is 'monetisation strategies in media sector'. Clearly, the future lies in digital media as the internet segment is leading the growth in India." said Chandrajit Banerjee, Director General, Confederation of Indian Industry.
The revenue from advertising is expected to grow at a CAGR of 13 percent and will exceed Rs 60,000 crore in 2018 from Rs 35,000 crore in 2013. Internet access has overtaken the print segment as the second-largest segment contributing to the overall pie of entertainment and media sector revenues.
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Smita Jha, Leader, Entertainment and Media practice, PwC India, said, "Digital success does not just necessarily mean better, improved technology. It means applying a digital mindset to build the right behaviours among industry stakeholders. This includes getting ever closer to the customer-across the entire organisation, and in everything it does."
With the rapidly increasing adoption of smartphones and tablets, the gaming sector is fast emerging as a promising source of revenue for the industry.
Efforts by industry players as well as support from the government are expected to provide a major boost to the gaming sector, which is still in its infancy.