These sectors, according to PricewaterhouseCoopers, which released the second edition of its Entertainment Report (the first one was released last year), on the first day of the Ficci Frames Summit in Mumbai, have significant growth potential. Our projection is that the animation industry will grow from the current Rs 12,000 crore to Rs 42,000 crore by 2009, says Deepak Kapoor, executive director & India leader, Entertainment & Media Practice, PricewaterhouseCoopers.
Mobile gaming, on the other hand, will jump from Rs 20 crore to Rs 260 crore in the next five years; Internet advertising from Rs 1,000 crore to Rs 7,500 crore; OOH advertising from Rs 9,000 crore to Rs 17,500 crore and live entertainment from Rs 8,000 crore to Rs 18,000 crore. Animation, in particular, says Mr Kapoor, could scale up with the involvement of the entertainment industry. According to Nasscom estimates, the Indian entertainment industry contributes around 68% of the revenues of the Indian animation industry. This translates into revenues of approximately Rs 880 crore.
If the existing share of 68% is maintained by the Indian entertainment industry, the contribution has the potential to grow the Indian animation industry by 35%, he said. Though work in the animation sector chiefly comes from projects outsourced to India, the local industry is making the leap forward by getting into co-production deals, Mr Kapoor said. There is need to improve this trend, though, says Mr Kapoor. Incidentally, this point about moving up the animation value chain was also raised by S K Arora, Information & Broadcasting Secretary, Government of India at the inaugural session of Ficci Frames. The need of the hour is to not only be mere sweat shops, but also encourage foreign animation studios to invest in the country,sign co-production deals etc, he said.