India's entertainment and media industry is expected to grow to Rs2,272 billion by 2018 at a compound annual growth rate of 15 per cent, according to a PwC-CII report released on Tuesday.
The Indian E&M industry generated Rs1,120 billion in revenue in 2013, an increase of 19 per cent over the previous year. The largest segment, television, continued its strong growth momentum, with revenue increasing from Rs366 billion in 2012 to Rs420 billion in 2013, representing year-on-year growth of about 15 per cent.
"This growth was led by an increase in subscription revenue, driven by the ongoing process of digitisation," the report said.
Internet access and internet advertising have been the fastest-growing segments, with annual growth rates of 47 per cent and 26 per cent respectively.
While television is expected to continue its robust growth to reach Rs846 billion at a CAGR of about 15 per cent by 2018, internet advertising and internet access are projected to remain the fastest-growing segments, with CAGR of 28 per cent and 21 per cent respectively; while the radio sector is expected to grow at 17 per cent.
Film contributed Rs126 billion to the industry, a growth rate of 13 per cent, on the back of higher domestic and overseas box-office collections as well as cable and satellite rights. The share of the music sector, though minor, is expected to grow at a CAGR of 13 per cent, reaching Rs22 billion in 2018 from Rs12 billion in 2013.
The report projected that the TV sector would continue to lead the industry with revenue contribution of 37 per cent in 2018. Internet access is expected to emerge as the second-highest contributor with a share of 29 per cent, up from 22 per cent in 2013. With the increase in share of internet access, the relative sector contribution of large segments such as print and film is expected to decline.
The share of print is likely to decrease from 20 per cent in 2013 to 14 per cent in 2018, while the share of film is expected to decrease from 11 per cent to 10 per cent during this period.