Indian media industry to outshine global peers

Written by fe Bureau | New Delhi | Updated: Jul 31 2009, 06:40am hrs
The Indian media & entertainment (E&M) industry would grow at a rate five times the global annual average growth rate in the next five years, albeit on a base of around 1% of the total global media & entertainment pie.

Indias E&M industry is expected to grow at a compound annual growth rate (CAGR) of 10.5% between 2009-2013 compared to the global rate of 2.7% for the same period, projects a PwC report.

While the Indian media industry would touch $18.58 billion by 2013,the global E&M market is expected to grow 2.7% compounded annually over the five year forecast period to $1.6 trillion in 2013. After registering a growth of around 16.6% compounded annually over the period 2004-08, growth in the Indianmedia industry is set to decelerate to 8% in 2009. This has largely been influenced by a marked slowdown in advertising spending, which is expected to touch 9.2% in 2009 after posting a CAGR of close to 17.3% during the period 2004-08.

Growth rates will increase in 2010 to 10.4% as economic conditions are expected to improve. For the remaining years of the forecast period, the industry will continue to grow at increasing rates, resulting in the overall CAGR for the period 2009-13 of 10.5%. The television industry is projected to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 11.4%.

cumulatively over the next five years, from an estimated $4.8 billion in 2008 to reach $8.4 billion by 2013. In the television pie, television distribution is projected to garner a share of 60% in 2013 television advertising industry is projected to command a share of around 40%.

The film industry is projected to grow at a CAGR of 11.6% over the next five years,touching $3.7 billion in 2013 from the present$2.14 billion in 2008. The relative shares of the film industry are expected to shift marginally from the traditional revenues to the new emerging revenues.

The print industry is projected to grow by 5.6% over the period 2009-13,touching$ 4.26 billion in 2013 from the present $3.24 billion in 2008. The relative shares of newspaper publishing and magazine publishing are not expected to change significantly and are expected to remain the same at around 87% in favour of newspaper publishing. Magazine publishing is expected to grow at a higher rate of 6.5% as compared with newspaper publishing which is expected to grow at 5.6% for the next five years.

Overall ad spending is expected to increase from the present size of $4.32 billion in 2008, to $7.32 billion in 2013 (a cumulative growth of 11.1% on an overall basis).

Timmy Kandhari, leader, India entertainment and media practice, PwC added, Against the backdrop of volatility in advertising spending, we are also experiencing increased fragmentation of media and its audiences.This will result in a structural change in the advertising world with advertising becoming more targeted, interactive and accountable .