International Entertainment sector to treble in size to Rs 28,600 crore by 2005

Entertainment sector to treble in size to Rs 28,600 crore by 2005

Author | NULL | Saturday, Mar 24,2001 12:00 AM

Entertainment sector to treble in size to Rs 28,600 crore by 2005

The Indian entertainment industry is expected to almost treble in size to Rs 28,600 crore by 2005 from Rs 9,600 crore at present as per a study done by Arthur Andersen for Ficci. The report, titled “Ficci —Arthur Andersen report on Indian Entertainment Industry: Envisioning Tomorrow”, highlights the growth of various segments of this industry like films, television broadcasting, cable TV, television software, radio and live entertainment and event management.

In India, the ratio of advertising expenditure to GDP is about 0.4 per cent. This is quite low in comparison to that of developed economies like the US (13 per cent),” the report stated, but added this was expected to grow to 0.5 per cent of the GDP in the next five years.

As per the report, TV broadcasting segment is expected to grow to Rs 8,400 crore by 2005 and Rs 28,900 crore by 2010. The current status of the sector is estimated to be around Rs 3,000 crore.

The advertisement revenues will increase because of growing share of TV in the total advertisement expenditure, subscription revenues are expected to surge as a result of consolidation and regulation in the distribution market.

Introduction of tiers and addressability (where viewers pay for the channels they wish to see and don't get others) and DTH (direct-to-home) are likely to fuel the growth of this industry.

On cable television segment, the report states that it is expected to grow to about Rs 7,000 crore by 2005 from the current Rs 2.400 crore. The growth drivers will be increased number of cable households, increase in subscription rates and revenues from value-added services like Internet and overall consolidation.

But the report sounds a warning for the cable TV industry saying competition may come from DTH and wireless cable, a situation similar to the Western countries.

The report, details of which will be unveiled at Frames 2001, a global convention on the business of entertainment to be held in Mumbai on March 30 and 31, states the film industry is expected to touch Rs 4,000 crore turnover by 2005, up from Rs 1,300 crore at present.

Corporatisation, expansion and diversification of exhibition infrastructure will fuel the growth of this segment since currently there are only 12.5 million screens per million people which is woefully inadequate for the large population.

The TV software segment is expected to grow to Rs 5,400 crore by 2005 from Rs 1,400 crore at present. The music industry is likely to grow to Rs. 1,900 crore by 2005. Radio which is witnessing a sort of resurgence after the privatisation of FM, is expected to touch Rs 700 crore turnover by 2005, while the live entertainment and event management business is pegged at Rs 1,100 crore turnover by 2005.

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