Indian showbiz and media industry to grow by 12%: PricewaterhouseCoopers

The industry is expected to touch Rs 1040 billion growing cumulatively at a 12.4% CAGR to 2014.

On the road ahead, Timmy S Kandhari, Leader ' Entertainment & Media Practice, PricewaterhouseCoopers India said, "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 E&M industry is looking to get back to its high growth trajectory."

The industry registered one of its slowest growth rates in 2009, growing at a rate of 2.2%. This was largely due to lower than expected uptake in the advertisement spend which registered no growth and hence affected sectors like print, OOH, radio as well as Internet advertising. Negative growth in filmed entertainment also affected growth in 2009.

Outlook for major segments of the Indian Entertainment & Media Industry 2010-2014:

Television: The industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 12.9% cumulatively over the next five years, from an estimated Rs. 265.5 billion in 2009 to Rs. 488.0 billion by 2014.

Film: The industry is projected to grow at a CAGR of 12.4% over the next five years, reaching Rs.170.5 billion in 2014 from the present Rs. 95.0 billion in 2009.

Print media: The industry is projected to grow by 7.4% over the period 2010-14, reaching to Rs. 230.5 billion in 2014 from the present Rs. 161.5 billion in 2009.

Radio advertising: The industry is projected to grow at a CAGR of 12.2% over 2010-14, reaching Rs. 16.0 billion in 2014 from the present Rs. 9.0 billion in 2009.

Music: Due to the tremendous uptake of the mobile VAS market, the industry is projected to grow at a CAGR of 28.6% over 2010-14, reaching Rs. 26.5 billion in 2014. 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.

Internet advertising: Given the trends of increased internet usage, internet advertising is projected to grow by 20.1% over the next five years and reach an estimated Rs. 15 billion in 2014 from the present Rs 6 billion in 2009.

Out of home (OOH): The estimated size of Out of home (OOH) advertising spend is Rs 12.5 billion in 2009, which is projected to reach Rs 21.0 billion in 2014. Its share in the total ad pie is expected to go down marginally to 5.6% in 2014 from a current level of 5.8% in 2009.

Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 25.2% to Rs. 73.4 billion in 2014 from its current size of Rs 23.8 billion.

Other Factors in the Outlook:

Advertisement Spend

The advertisement spend which registered no growth in 2009 is showing a rebound with increasing business confidence returning to the market as well as with innovative structuring. The spend will grow at 11.4% CAGR for the period 2010-2014.

Digital vs. Non-Digital Spend

Globally, consumer experience is driving change very rapidly. Consumers are embracing new media experiences with staggering speed resulting in increased spend on digital media. However, India is a very different case in point.