Indian entertainment and media industry to reach Rs. 929.5 billion in the next 5 years

The Indian E&M industry is estimated to grow from Rs. 563.9 billion in 2008, at a CAGR of 10.5% for the next five years to reach Rs. 929.5 billion in 2013, says the PricewaterhouseCoopers’s Indian entertainment and media outlook 2009.

Over the next five years, television industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 11.4% cumulatively, from an estimated Rs. 244.7 billion in 2008.

The overall television industry is projected to reach Rs. 420 billion by 2013. In the Television pie, distribution is projected to garner a share of 60% in 2013. On the other hand, television advertising industry is projected to command a share of 41.0% in 2013, having increased from a present share of 39.0% in the total ad industry pie. The relative share of the television content industry is expected to remain constant at 4%.

The Indian film industry is projected to grow at a CAGR of 11.6% over the next five years, reaching to Rs. 185 billion in 2013 from Rs. 107 billion in 2008. The relative shares of the film industry are expected to shift marginally from the traditional revenues to the new emerging revenues.

The Indian film print media industry is projected to grow by 5.6% over 2009-13, reaching to Rs. 213 billion in 2013 from Rs. 162 billion in 2008. The relative shares of newspaper publishing and magazine publishing are not expected to remain the same at around 87%, in favour of newspaper publishing. Magazine publishing is expected to grow at a higher rate of 6.5% as compared with newspaper publishing which is expected to grow at 5.6% for the next five years.

The radio advertising industry is projected to grow at a CAGR of 18% over 2009-13, reaching Rs. 19 billion in 2013 from Rs. 8.3 billion in 2008; more than double its present size. In terms of share of ad pie, it is projected that the radio advertising industry will be able to increase its share from 3.8% to 5.2% in the next five years.

The animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 22% to Rs. 42.5 billion in 2013 from Rs 15.6 billion. In the animation space, domestic demand will create the fillip in its growth, as well as contribution from international co-productions, in the film and television space.

The Indian gaming industry is projected to grow from an estimated size of Rs. 3.9 billion in 2008 to an estimated Rs. 16.3 billion by 2013; translating into a cumulative growth of 32.7% over the next five years . Mobile gaming will dominate the segment with 74% share , driven by the growth in the high end segment of the mobile users, new content by mobile operators and the availability of 3G spectrum that enables easy of play.

Online gaming will be the next highest contributor followed by console gaming. This will be fuelled by the growth of internet users and especially the growth of the target segment of users aged between 15-34 years. The growth in solo gaming will also be aided by falling cost of console prices and availability of local games.
Given the trends of increased internet usage, internet advertising is projected to grow by 32% over the next five years and reach an estimated Rs. 20 billion in 2013 from Rs. 5 billion, currently. The share of the online advertising too is projected to grow from 2.3% in 2008 to 5.5% in 2013 of the overall advertising pie.

The estimated size of the OOH industry is Rs. 15 billion, which is projected to become almost twice its current size in 2013 to 25 billion. Its share in the total ad pie is expected to go down marginally to 6.8% in 2013 from 6.9% in 2008.

The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 16% in 2008 to 60% in 2013. Within digital music, mobile music will continue to increase its share and maintain its dominance.

Source: http://www.audiencematters.com/newsdetails.aspx?tbl_type=news&n_detail=2551&news_type=Media