Media & entertainment sector to touch Rs1 trillion
02 April 2007
Mumbai: India's entertainment and media (E&M) industry is set to touch the Rs1 trillion-mark in four years time, according to a study. Growing at a compound annual growth rate (CAGR) of 18 per cent, the industry currently has a size of Rs437 billion but is expected to outgrow the country's economy according to a study conducted by FICCI and PricewaterhouseCoopers.
PwC said the growth was partly due to the several positive measures taken by the government and partly dye to technological advancements, entry of large corporate players into all segments of the industry.
According to the study, the E&M industry is growing at a faster rate than the country's economy because of its income elasticity, wherein when income rises more resources are spent on leisure and entertainment than on necessities.
The study foresees the growth being chiefly led by radio and television which will clock 28 and 22 per cent, respectively. Television will continue to contribute the largest share of revenues to the industry with its size expected to grow from the current Rs191 billion to Rs519 billion by 2011, it says.
is followed by film entertainment (16 per cent), out-of-home
advertising (17) and live entertainment (16).