Television to grow into Rs 5k-cr biz by 2014

Written by fe Bureau | New Delhi | Updated: Aug 1 2010, 03:50am hrs
The television industry will account for almost half the share of the Indian media and entertainment industry by 2014, reaching almost Rs 50,000 crore in size, compared with its current share of around 40%. However, the share of print media will go down to 23% in 2014 (Rs 23,050 crore), compared with nearly 30% in 2009 (Rs 16,150 crore), according to the findings of the latest report by research firm PricewaterhouseCoopers (PwC) on the Indian media and entertainment sector.

According to the report, the television sector will grow at nearly 13% over next four years to reach nearly Rs 49,000 crore, almost half the projected size of the media and entertainment sector projected for 2014.

If true, this would be a remarkable turnaround story for the media and entertainment sector, which grew by only 2.2% in 2009, the lowest in over a decade. According to PwC, this took place amid severe global downturn in 2008-09, which also affected India.

"Many of the factors which caused the slowdown in 2009 are not likely to persist. With confidence returning alongside a likely increase in consumer and advertisement spends, the industry is looking to get back to its high growth trajectory," PwC India Leader (E&M Practice) Timmy S Kandhari said.

The lowest growth of the sector in 2009 was largely due to lower than expected uptake in advertisement expenditure and hence affected sectors like print, out-of-home (OOH), radio and Internet advertising, the report said.

However, for the next four years, television is projected to be a major contributor to the overall industry revenue pie with an estimated rate of growth pegged at 12.9% cumulatively till 2014 from an estimated Rs 26,550 crore in 2009 to Rs 48,800 crore by 2014, the report said.

Films, as a segment, is projected to grow at a compound annual growth rate of 12.4% reaching Rs 17,050 crore in 2014 from Rs 9,500 crore in 2009. Print media is projected to grow by 7.4%, reaching to Rs 23,050 crore in 2014 from Rs 16,150 crore in 2009, the report said.

The study also projects radio advertising to grow at a CAGR of 12.2% to Rs 1,600 crore in 2014 from Rs 900 crore in 2009. Due to the tremendous uptake of the mobile value added services (VAS) market, the Indian music industry is projected to grow at a CAGR of 28.6% reaching Rs 2,650 crore in 2014. Animation, gaming and VFX industry is expected to grow at a CAGR of 25.2% to Rs 7,340 crore in 2014 from its current size of Rs 2,380 crore.

"The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 29% in 2009 to 75% in 2014," it said.