Entertainment industry gallops ahead; music shrinks
Our Corporate Bureau
28 March 2005
The study predicts the entertainment industry to grow from Rs22,200 crore at present to touch Rs 58,800 crore by 2010.
Paradoxically, the music industry, a major part of film and television entertainment in India, has shrunk by Rs350 crore to Rs1,000 crore from Rs1,350 crore three years ago. The study predicts the music industry to grow to Rs1,300 crore by 2010.
The entertainment industry as a whole comprising television, film, music and radio industries grew from Rs19,600 crore in 2003 to Rs22,200 crore in 2004. The study says that television is growing the fastest amongst all media and contributed 62 per cent of overall growth in 2004 and will touch Rs32,500 crore by 2009.
In a consolation of sorts for the music industry, the study says the slow growth of the music industry was not due to a decrease in sales, but a decrease in sales from legitimate sources. The study said delivery through formats like FM radio, internet and mobile phones has actually increased interest in music.
According to the study, future growth of the music industry would come from formats like digital downloads, royalty income and ring tones. The rollout of additional distribution platforms such as DTH, digital cable and IP-TV, with the growing popularity of large formal retail stores, will create many more channels selling music.
The report predicts that the Indian entertainment industry is ready to enter the second stage of growth powered by technology (availability of quality infrastructure and accelerated penetration of digital connectivity) and an enabling regulatory environment.