The Indian media and entertainment sector will grow to Rs 1.2 lakh crore by 2015, according to a PwC report. The ‘Indian Entertainment and Media Outlook' predicts that the sector will grow at a CAGR of 13.2 per cent between 2011 and 2015. PwC estimates that the sector, comprising television, film, print, radio, internet advertising, OOH, animation (including gaming and visual effects) and music industries, earned Rs 64,600 crore in revenue in 2010.
According to PwC, the television industry will continue to hold the largest chunk of revenues within the sector in the next five years. From a size of Rs 30,650 crore in 2010, the television industry is expected to rise at a CAGR of 14.5 per cent to reach Rs 60,250 crore.
Within television, the report accounts revenues generated by content producers (Rs 1,200 crore in 2010), advertising revenues sold by channels (Rs 10,150 crore) and subscription revenues through distribution (Rs 19,200 crore). All three streams are expected to grow at around 14.5 per cent CAGR up to 2015.
Mr Timmy Kandhari, Leader - Entertainment and Media practice, PwC India, noted that ad revenues will have to be supplemented with subscription growth for sustainable and profitable growth of the entire media and entertainment sector. On television, he underlined the need for addressable digitisation.
Internet advertising is expected to touch Rs 2,400 crore by 2015, growing at a CAGR of 25.5 per cent. Animation, gaming and visual effects will rise 21.4 per cent, to touch Rs 8,260 crore, says the report.
The film industry, estimated at Rs 8,750 crore in 2010, is expected to touch Rs 13,650 crore by 2015. Growing at a similar rate of over 9 per cent, print media businesses are expected to generate revenue of Rs 28,200 crore in 2015.
The music industry is expected to benefit from consumption through mobile value added services (VAS) and phase three of FM radio licensing. From Rs 950 crore in 2010, it is expected to grow at a CAGR of 17.6 per cent to reach Rs 2,140 crore in 2015.
World view
Mr Marcel Fenez, Global Leader, Entertainment and Media practice, PwC, observed that globally, the share of television of overall media and entertainment is expected to rise by 2 per cent to 40 per cent by 2015, while the share of the newspaper industry is expected to come down to 17 per cent from the present 20. Consumer magazines are expected to remain constant, at 6 per cent, while internet advertising is expected to rise from 12 to 16 per cent.