The media and entertainment industry has chalked out an ambitious plan to treble its turnover to Rs 32,000 crore by 2005. Industry experts, however, unless corporatisation and international co-productions take off in a big way, the target is likely to remain a pipe dream.
Entertainment industry will grow 25 to 30 per cent year-on-year. Some individual companies would even grow at a rate of 100 per cent. But, we are largely missing the road map,” said Ronnie Screwvala, chairman, UTV.
India is one of the largest film producers in the world and it churned out over 230 movies in 2000. But nearly 90 per cent of the movies flopped. “The hit rates will not change drastically in the coming years. The films makers and distributors will have to start looking for multiple revenue streams.
If we want the estimated industry growth rates then we will have to get 7-8 movies to gross over Rs 50 crore annually on a worldwide basis. Secondly we will also need at least two international co-productions which will yield us over Rs 150 crore a year,” Screwvala said.
Piracy is another factor that is impeding the growth of this industry. About Rs one crore is lost in India due to film piracy and Rs 2 crore in the overseas market. An apex body is likely to be formed by the industry, which will fight piracy on the same lines of what Business Software Alliance does to curb piracy in the software segment. Exhibitors and film distributors will also be brought under the apex body.
Music industry which loses 50 per cent of its revenue to piracy both in India and overseas will work together with this apex body.
On the television and broadcasting front, a shakeout is expected in the regional channels. Only two to three players will survive in every regional language channel,'' said a broadcaster.
Consolidation is expected among the 3,000 odd TV content providers too. Cable subscription would be the key driver for overall growth in the electronic media. Ad revenues are not likely to support the growth projected in this industry.
International revenues is a key growth engine, but risk factors are building credibility and discipline in quality and deliveries is a must for the global market. The industry is also waiting for regulation from the government side as it has yet to spell out its initiatives on the regulatory front. More than five years after it was mooted the policy on DTH also remains unclear.
The industry has also proposed that the task force set up a rating agency like Crisil to rate entertainment companies. The ratings will define whether an investor or lenders can take risk with a particular company.
Broadband in the public infrastructure will not take off in the next three years. Although corporate biggies have constantly been promising to create broadband infrastructure, nothing much has happened on the ground.
Radio on the other hand is likely to take off in the next few years and is expected to grow much higher than television. Industry observers argued that return on investment is still invisible in this sector.