The Indian media and entertainment industry will grow at twice the rate of the country?s GDP in a few years, driven largely by the emergence of regional players, technology and digitisation, says a joint study by Ernst and Young and Assocham.
The study also reveals that around 28% of the 100 million pay TV households would be going digital by 2010, as a result of this trend. The report further said that in a digitised Indian media and entertainment environment, DTH would emerge leader over the next 3 years while IPTV would gain close to 1 million subscribers by 2010.
The report says that owing to an increase in addressability and consolidation in post digitisation period, broadcasters & MSOs stand most to benefit.
Television advertising is expected to grow at 14% for next three years and will continue to garner 43% share of the total spend, while home entertainment would account for 25% of a film?s revenue within three years, the report added. Digital music sales are expected to account for 88% of the total music market of Rs 4,200 crore in the country within two years.
The study highlights the fact that India, the third largest cable and satellite market in the world, witnessed a phenomenal CAGR of 38% for the past 17 years. It says that as Indian consumers become frequent users of digital platforms, media
?The pay TV market in India has not been able to maximise revenues due to restrictive regulations, unorganized value chains and lack of addressability in the analog platform. However, with digitization of the platforms more value will be created for each player across the value chain and the revenue shares will get redistributed amongst key stake holders creating a win-win situation for all,? said Farokh Balsara, national sector leader of media & entertainment, Ernst & Young.