The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Its various segments—film, television, advertising, print media and music among others—have witnesses tremendous growth in the last few years.

With A.R. Rahman and Resul Pokutty having won Oscars for their commendable work in Slumdog Millionnaire, the spotlight has shifted on India and the immense talent and potential it offers. Another Indian who has been in the news recently is Raju Narisetty, a prominent journalist, who has been appointed as the managing director of the Washington Post, a leading US daily.

According to a report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow 12.5 per cent per annum over the next five years and touch US$ 20.09 billion by 2013.

Television

The television industry in India is currently at its prime, contributing the largest share in the total media and entertainment industry. While India is the third largest cable television market in the world, the penetration level of pay TV is still low, which promises a huge untapped potential for growth.

According to the study by FICCI and KPMG, the television industry, which is currently valued at about US$ 4.63 billion will expand by 14.5 percent between 2009 and 2013.

Digital distribution platforms such as direct-to-home (DTH) are transforming the industry. Direct-to-Home segment is gearing up for a new phase of TV viewing with digital video recorders (DVRs) or personal video recorders that will free consumers from having to watch television at broadcaster-ordained timetables.

Mobile TV- where content will stream in on mobile phones – which is currently at a nascent stage is poised to grow big with the advent of 3G, according to experts. This can lead to the growth of many business opportunities in the media and entertainment sector. And according to ABI Research, the mobile TV market worldwide is expected to attract over 50 crore viewers in the next five years.

Considering that video is the most popular medium of entertainment, it will not be limited to mobile phones but will be expanded to in-car television and personal media players among others, according to experts.

Viewership across various segments is increasing and marketers are launching new channels to meet this growing demand. Turner and Warner Bros Entertainment, Hollywood's leading studio have launched WB, a new Warner-branded channel in India that will showcase blockbuster motion pictures and acclaimed television series. The channel will be distributed by Zee-Turner and will be available on both DTH platforms and cable and satellite homes. Hindi general entertainment channel (HGEC) Star Plus is launching four new shows in March this year.

Music

The Indian music industry, which until recently was overwhelmingly dominated by film music, is now being driven by non-film music. However, piracy and advent of radio channels which constantly play hit music leading to loss of sales of music, has affected the industry.

Industry experts estimate that the current size of the industry is about US$ 149 million, calculated on the basis of legitimate unit sales of compact discs (cds) and music cassettes of around 15 crores. And according to a PwC study, the music industry is likely to grow by 2 per cent over the next five years and will be a US$ 164.56 million industry by 2012.

While cassettes and cds have traditionally accounted for most of the sales, future growth will come from non-physical formats such as digital downloads and ringtones, among others.

According to a joint study by Soundbuzz, a digital music company, PwC and International Federation of Phonographic Industries, India was poised to become the second country in the world, after South Korea, where digital music sales will surpass the sales of music in traditional formats.Digital music sales are expected to account for 88 per cent of the total music industry revenue in India by 2009.