Revenues from media and entertainment seen doubling by 2010

Mumbai: Revenues from media and entertainment business, growing at an annual average rate of 15.6 per cent, will double by 2010, amidst robust growth and changes in distribution structures, a Crisil research report said.

Revenues of the industry will grow at an annual rate of 15.6 per cent to Rs74,400 crore in 2010 from an estimated Rs36,100 crore in 2005, the report prepared by Crisil research head Nagarajan Narasimhan said.

"The media and entertainment sector is expected to be one of the key beneficiaries of the increase in discretionary spending by the Indian consumer," the report said.

"Growth in television and radio segments would be particularly impressive. The music industry, however, is expected to continue to show tepid growth," Crisil said.

"In television, we expect the balance of power to shift in favour of broadcasters with the adoption of alternative distribution platforms such as DTH (direct-to-home), CAS (conditional access system), and IPTV (internet protocol television)," the report said.

The presence of multiple players, greater choices to consumers and investor interest are the key factors driving the sector. Convergence, the change in the way of use and delivery of content to consumers, is now expected to increasingly influence the future growth in the sector, the report pointed out.

This would require payers to re-tool and adapt their business models to flourish in an increasingly converged world, the report added.