Entertainment, Media industry to grow 18pc by 2011

New Delhi, Mar 19: The Indian Entertainment and Media (E&M) industry is poised to grow at an 18 per cent compound annual growth rate (CAGR) to reach Rs one trillion by 2011 from its present size of Rs 437 billion, an indusrtry report said today.

The growing demand coupled with technological advancements, policy initiatives taken by the Indian Government to encourage the inflow of investment and initiative by private media companies, will be the key drivers for the E&M industry, according to the 2007 annual edition of the FICCI-PricewaterhouseCoopers (PWC) report 'Indian Entertainment and Media Industry'.

The industry has been forecast to outperform the economic growth in each year, till 2011.

The FICCI-PWC report, to be released at FICCI-FRAMES on March 26 by the Union Information and Broadcasting Minister Priya Ranjan Dasmunsi, states that 2006 which witnessed a growth of 20 over the previous year was also the year that marked the start of convergence for the media industry.

With various different services available on the same consumer devices and different network platforms enabled to carry similar services, consumers have been promoted to the top of the value-creating hierarchy, allowing them to enjoy all new social media experience termed as Lifestyle Media.

With this new empowerment of consumers, mass media is fast becoming a two-way communication platform and the importance of accurate audience measurement will be greater than ever before.

Media consumption models such as media marketplace will gain significant importance as it will be crucial to gain insights in to the exact demands of consumers.

Sectorally, the internet advertising industry is set to post the highest compound annual growth rate (CAGR) of 43 per cent, rising from its current size of Rs 1.6 billion to Rs 9.5 billion in 2010.

The television industry is projected to grow by 22 per cent from Rs 191 billion to Rs 519 billion by 2011; filmed entertainment by 16 per cent from Rs 85 billion to Rs 175 billion; and print media by 13 per cent from Rs 128 billion to Rs 232 billion.

The radio industry will grow by 28 per cent from Rs 5 billion to Rs 17 billion; music by 4 per cent from Rs 7.2 billion to Rs 8.7 billion and live entertainment by 16 per cent from Rs 9 billion to Rs 19 billion.

Out-of-home advertising will sport a growth of 17 per cent from Rs 10 billion to Rs 21.5 billion, the FICCI-PWC report said.

UNI