PricewaterhouseCoopers reports that the Indian media and entertainment industry is slated to grow cumulatively from Rs.563 billion to Rs.929 billion between 2010 and 2013. Of this, the traditional media (TV, print, radio and film) will contribute Rs.837 billion, while the emerging segments (music, OOH, Internet, animation, gaming and VFX) will contribute Rs.92 billion.
The fastest growing quarters will be radio, animation, gaming, OOH and online advertising. Television and film entertainment will grow at 11.4 and 11.6 per cent respectively over the next four-five years.
The television business, which is slated to be a Rs.420 billion market by 2013, has seen quite a few developments – be it the increased propensity towards regional markets, consolidation among national channels or emphasis on differentiated content. There is a strong growth expected on the digital (DTH) front, leading to growth of niche channels.
The most affected sector, the print industry, has seen the launch of new magazines and international titles, and renewed focus on regional markets. Magazines and periodicals are growing faster than newspapers, which constitute 87 per cent of the print pie. The print industry is growing at 5.7 per cent. Magazine publishing is expected to grow at a higher rate of 6.5 per cent as compared to newspaper publishing, which is expected to grow at 5.6 per cent for the next 5 years.
Radio is expected to get on the growth curve, too. As rules get relaxed on radio broadcasting, the medium will attract larger spends from advertisers, from 3.8 per cent now to 5.2 per cent in a few years. Rationalising of music royalties and multiple licenses will help profitability and improve listenership. The medium is expected to grow by 18 per cent by 2013.
The emergence of digital platforms, increased broadband penetration and measurement tools for OOH (out of home) will boost the emerging segments growing at 17.2 per cent. The estimated size of OOH advertising spend is Rs.15 billion in 2008, which is projected to become almost twice its current size (Rs.25 billion) in 2013.
The filmed entertainment industry has attracted global players in the business. The slowdown will benefit the home video segment and growth is expected in digital cinema and merchandising as a revenue model, too, will emerge. This industry is estimated to grow by 11.6 per cent between 2009- 2013.
While the Internet is currently the smallest component of total advertising spend, it will experience the highest growth over the next five years, growing at a compound rate of 32 per cent. Its share in the total advertising spend will increase to 5.5 per cent in 2013 from 2.3 per cent in 2008.