The entertainment and media sector is in an effort to take the sector from its current Rs 43,700 crore turnover to over Rs 100,000 crore by 2011.
Buoyed by growing income levels, consumerism, technological improvements and greater investments, the sector is expected to cross Rs 100,000 crore, registering an 18 per cent compounded annual growth rate(CAGR), according to a Ficci-PwC report, which will be released tomorrow to mark the annual media and entertainment convention, Ficci-FRAMES (from 2001).
The turnover of the TV industry is projected to grow by 22 per cent to Rs 51,900 crore by 2011 from the current size of Rs 19,100 crore.
Subscription revenue is projected to be the key growth driver as the pay TV homes will increase from 71 million to over 100 million in the next four years.
The print media industry is expected to register 13 per cent growth to reach Rs 23,200 crore from the current size of Rs 12,800 crore by 2011.
Currently, the print media reaches 222 million people, it has the potential to reach another 369 million literate people.
Incidentally, the report notes that 2006 saw 13 proposals for FDI in media and the ministry is examining another 22 proposals for clearance. As for the internet, though the media has a small base it is expected to show the highest CAGR of 43 per cent to reach Rs 950 crore in 2011 from Rs 160 crore now.
As per the report, advertising revenue in radio industry is expected to grow by 28 per cent annually to reach Rs 1,700 crore by 2011.
Currently, radio generates advertising revenue of Rs 500 crore. The growth is fuelled by the expansion of private FM radio companies. Piracy of Rs 2,500 crore annually is pulling back the growth of the music industry, the report said. Music industry will grow only by four per cent from Rs 720 crore, currently to Rs 870 crore in the next four years, it said.
Live entertainment segment is estimated to grow by 16 per cent from Rs 900 crore to Rs 1,900 crore and out-of-home advertising by 17 per cent from Rs 1,000 crore to Rs 2,150 crore in the same period, the report said.
According to the report, Indian advertising spends also showed exponential growth in 2006 growing over 23 per cent over the last year at Rs 16,300 crore.
Source : Business Standard