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Indian Entertainment Industry Analysis

April, 2014

With 146 million television households in 2011, India stood as the third largest television market after the US and China. It has one of the largest broadcasting industries in the world with approximately 800 satellite television channels, 245 FM channels and more than 100 operational community radio networks. The total subscriber base for the Indian television industry is expected to increase to 173 million by 2016 from 95 million in 2009.

The entertainment industry is expected to develop at a compound annual growth rate (CAGR) of 15.2 per cent during 2012–17. The total market size of the entertainment industry expanded to US$ 15.1 billion in 2012 from US$ 9.2 billion in 2006, at a CAGR of 10.9 per cent. The industry recorded one of the highest growths in the world in 2010 (11.0 per cent); the growth in 2012 picked up even further to reach 12.6 per cent.

The entertainment industry is expected to benefit from the high penetration and a rapidly growing young population, combined with increased usage of 3G and portable devices. The Government of India has increased foreign direct investment (FDI) limit from 49 per cent to 74 per cent in cable and DTH (provide expansion) satellite platforms. It has also taken measures such as digitisation of cable distribution to improve profitability and ease of institutional finance.

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