News: ‘Indian entertainment, media industry to grow 19%’
(UNI 02/04/2006) Mumbai - The Rs 35,300 crore Indian entertainment and media (E&M) industry is expected to grow at a compounded annual growth rate of 19 per cent in the next five years.
As per industry estimates and Pricewaterhouse Coopers (PwC) analysis, the television industry continues to dominate the E&M industry by garnering a share of over 42 per cent. This is expected to increase further by nine per cent and reach about 51 per cent.
The share of the film industry currently stands at 19 per cent and is not expected to change materially over the next five years.
Print media, which stands at over 31 per cent, is projected to lose some of its share in favour of emerging segments.
The report says the E&M industry is a cyclical one, which grows faster when the economy is expanding. It grows faster than the nominal GDP rate during all phases of economic activity due to its income elasticity. On the other hand, when incomes rise, more resources are spent on leisure and less on necessities. Besides, consumption spending is increasing due to rise in disposable income of individuals, following sustained growth in income levels. This also builds the case for a strong bullish growth in the sector.
Last year new players made entry across all segments of the E&M industry. The most prominent entry was that of the Reliance group into the film entertainment and radio segment. In the previous year, Reliance Capital bought a majority stake in Adlabs, enabling it to have a presence across the entire value chain of film entertainment segment, ranging from film production to exhibition and distribution.
Through Adlabs, Reliance also, made a foray into the radio segment by bidding for over 50 FM radio stations across the country for over Rs 150 crore.
As per industry estimates and Pricewaterhouse Coopers (PwC) analysis, the television industry continues to dominate the E&M industry by garnering a share of over 42 per cent. This is expected to increase further by nine per cent and reach about 51 per cent.
The share of the film industry currently stands at 19 per cent and is not expected to change materially over the next five years.
Print media, which stands at over 31 per cent, is projected to lose some of its share in favour of emerging segments.
The report says the E&M industry is a cyclical one, which grows faster when the economy is expanding. It grows faster than the nominal GDP rate during all phases of economic activity due to its income elasticity. On the other hand, when incomes rise, more resources are spent on leisure and less on necessities. Besides, consumption spending is increasing due to rise in disposable income of individuals, following sustained growth in income levels. This also builds the case for a strong bullish growth in the sector.
Last year new players made entry across all segments of the E&M industry. The most prominent entry was that of the Reliance group into the film entertainment and radio segment. In the previous year, Reliance Capital bought a majority stake in Adlabs, enabling it to have a presence across the entire value chain of film entertainment segment, ranging from film production to exhibition and distribution.
Through Adlabs, Reliance also, made a foray into the radio segment by bidding for over 50 FM radio stations across the country for over Rs 150 crore.
posted by InCar Group Press Room at 15:53
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