The Economic Times: September, 2014
New Delhi: India's entertainment and media industry will more than double in five years to 2018 and grow to over Rs 2,27,000 crore at a rate of more than 15%, a report by industry body Confederation of Indian Industry (CII) and professional services firm PwC has said.
The growth rate has been estimated on a compounded basis annually. In 2013, the industry grew 19% over the previous year to Rs 112,044 crore, according to the report.
"The future lies in digital media as the internet segment is leading the growth in India," Chandrajit Banerjee, director general of CII said, commenting on the findings. Internet access and internet advertising were the fastest growing segments in 2013, clocking growth rates of 47% and 26% respectively over the previous year.
The companies in the sector will need a business strategy fit for the digital age, the report said, pointing out that "the industry needs to get even closer to the consumer and adopt more flexible business models".
Internet advertising will emerge as the third-largest segment, with a share of about 16% in the total entertainment and media advertising pie, as per the estimates.
Television and print media are expected to remain the largest contributors to the advertising pie in 2018 as well, as per the report, which estimates that the revenue from advertising will grow at a CAGR of 13% and exceed Rs 60,000 crore in 2018 from Rs 35,000 crore in 2013. Television, the biggest segment, grew 15% in 2013, driven by subscription revenues. The film segment, estimated at Rs 12,600 crore in 2013, is projected to grow steadily at a CAGR of 12%.