The Indian media industry, comprising of television, print, films, music and radio, is expected to grow to $6.5 billion in the next four years from the present $3.4 billion. According to McKinsey report the industry has grown 12 per cent between 1996-2000, from $2,306 million to 3,432 million. The fastest growing segment are TV, music and radio, which grew 19, 14 and 13 per cent respectively in the year 2000.
The revenues in the three segments for the same period are $1,169 million, $681 million and $182 million. While TV contributes 0.23 per cent to GDP, radio has a marginal 0.01 per cent share.
Lack of demand for fast moving consumer goods, low level of competitions among advertisers and low per capita income are the reasons cited for the modest growth.
The size of the total media industry as a percentage of GDP is 0.67 per cent. This is relatively low vis-à-vis the US where it is 2.1 per cent. Advertising contributes 0.31 per cent of the GDP in India as against 1.41 per cent of the US.