Media & entertainment to touch Rs 74k cr

Mumbai, Nov 27 | Updated: Nov 28 2006, 09:18am hrs
Crisil Research, in its recently published report on the media and entertainment (M&E) industry, has projected a doubling of revenues on an aggregate basis from an estimated Rs 36,100 crore in 2005 to Rs 74,400 crore by 2010, translating into an annual growth rate of 15.6% during this period. According to Nagarajan Narasimhan, head, Crisil Research, The M&E sector is expected to be one of the key beneficiaries of the increase in discretionary spending by the Indian consumer. All segments in the industry are projected to grow, but growth in television and radio segments would be particularly impressive. The music industry, however, is expected to continue to show tepid growth.

Factors such as the presence of multiple players, greater choices to consumers and investor interest have spurred growth in the sector so far. Convergence is now expected to increasingly influence the future growth in the sector. This will require players to re-tool and adapt their business models to flourish in an increasingly converged world.

Conventional distribution mechanisms in the industry are expected to change. This, in turn, will influence the bargaining power of the different players in the value chain, as also the form taken by content. Says Nagarajan, In television, we expect the balance of power to shift in favour of broadcasters with the adoption of alternative distribution platforms such as DTH (Direct-to-Home), CAS (Conditional Access System), and IPTV (Internet protocol television). The implementation of digital technology and the advent of multiplexes as the preferred movie viewing alternative is fast changing the way movies are distributed and seen, and the world of music distribution is rapidly going digital and mobile.

Profitability of all industry players, especially that of established large players is expected to remain strong.

Television broadcasters are expected benefit from an increase in satellite television subscribers as well as increasing transparency in the cable distribution system.