The entertainment and media industry, in India, which was estimated at Rs51,300 crore in 2007, is poised to grow at a compound annual growth rate of 18 per cent for the next five years, to Rs1,50,000 crore (1.157 trillion) in 2012, according to a report released by FICCI and PricewaterhouseCoopers (PwC) at the ninth media convention FICCI-Frames on 25 March.
Internet advertising grew by 69 per cent from the previous year, from Rs1,600 crore in 2006 to Rs2,700 crore in 2007. This segment is expected to grow 32 per cent over the next five years and reach Rs1,100 crore in 2012 from Rs270 crore in 2007, according to the report.
Revenues from television remains to be the most lucrative in the entertainment industry. This segment is expected to grow by 22 per cent cumulative annual growth rate and reach Rs60,000 crore by 2012, which would constitute more than half of the total media and entertainment business in the country. The TV industry recorded a total revenue of Rs22,590 crore in 2007.
The out-of-home advertising industry (OOH) grew 25 per cent to an estimated Rs1,250 crore in 2007, up from Rs1,000 crore in 2006.The radio industry also had an impressive performance in 2007, with a growth of 24 per cent over the previous year and is estimated at Rs620 crore in 2007, up from Rs500 crore in 2006.
Print media, the other profit making segment in the country, recorded a growth of 16 per cent over the previous year and is estimated at Rs14,900 crore in 2007, up from Rs12, 800 crore in 2006.
The movie industry grew by 14 per cent over the previous year and is estimated at Rs9,600 crore in 2007, up from Rs8,500 crore in 2006.
The music industry, which grew marginally by 1 per cent has not caught up with the heady growth rates in other sectors, globally, particularly due to the rampant piracy.
Foreign investment in the sector for 2007 was at a record high of Rs85 crore, according to the report.
The foreign direct investment cap, which is currently at 26 per cent for news and current affairs, and 100 per cent for entertainment, might be raised to 74 per cent in digital formats such as direct-to-home and headend-in-the-sky, but not for cable operators, said Asha Swarup, secretary, ministry of information and broadcasting.
The emergence of sports as an entertainment, especifically cricket, has become a money spinning business with cricket leagues like Indian Premier League (IPL) and Indian Cricket League (ICL) grabbing the limelight, more is to be expected from sports in the next few years.