Entertainment industry to peak at Rs 1.5 lakh cr by '12

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Mumbai, Mar 25: Soon after the ninth Ficci Frames seminar on media and entertainment sector was inaugurated – PricewaterhouseCoopers along with a Ficci committee released the ninth edition of a report on the Indian entertainment and media industry.

The importance of this annual account is immeasurable and has become a bible for foreign investors who plan to invest in the Indian media industry. This year, the reports states that the Indian entertainment and media industry is poised to grow at compounded annual growth rate (CAGR) of 18% and will become a Rs 1,50,000 crore plus industry by 2012.

Deepak Kapoor, managing director, PricewaterhouseCoopers, said, “It is clearly an exciting time to be part of the ever-expanding entertainment and media industry. All of us at PwC continue to stay on top of new trends and developments. This year’s report manifests how the Indian E&M industry is reaching a stage of maturity with technology acting as a major enabler. The Indian E&M industry is expected to outgrow the Indian economy in every year from now till 2012.”

In 2007, the E&M industry recorded a growth of 17% over the previous year, higher than the forecasted growth of 15% projected in the previous year. The industry reached an estimated size of Rs 51,300 crore in 2007, up from Rs 43,800 crore in 2006. The advertising industry itself recorded a growth of 22% over the previous year and thus contributed an estimated Rs 19,600 crore in 2007 as compared with Rs 16,100 crore in 2006.

Though different segments of the industry grew at different rates, the highest growth was recorded by the smallest segment in the industry – online advertising. This segment grew by 69% from the previous year, albeit from a low base of Rs 1,600 crore in 2006 to Rs 2,700 crore in 2007. Its share in the overall advertising pie grew to 1.4% in 2007, up from 1.0% in 2006. The next highest growth was recorded by the out-of-home advertising industry (OOH) at 25% – the segment grew to an estimated Rs 1,250 crore in 2007, up from Rs 1,000 crore in 2006. Radio industry too logged an impressive performance in 2007, with a growth of 24% over the previous year and is estimated at Rs 620 crore in 2007, up from Rs 500 crore in 2006.