According to latest edition of the Global Entertainment and Media Outlook: 2002-2006 of PricewaterhouseCoopers, Indian films industry is poised to grow to $1.1 billion by 2006.
Besides films, the television networks, broadcast and cable TV business will also contribute to the growth of the E&M sector in a big way in India.
Despite an adverse economic scenario, the global entertainment and media (E&M) industry spending saw a growth in 2001 — rising by 1.5 per cent and exceeding the $1-trillion mark.
According to the study the global E&M spending will reach $1.4 trillion in 2006, with a 5.6 per cent compound annual growth rate (CAGR) over the next five years
The study states that the film entertainment will play a major role in the growth of the E&M sector in India. Market for Indian films abroad is now crossing the NRI lines to English speaking audiences as well.
On a global basis, weak economic conditions will continue to dampen spending in 2002 and 2003, but faster growth will resume in 2004-2006. Digital distribution, piracy and a rebounding global advertising market will be three main factors impacting the industry's growth over the next five years, the outlook predicts.
Commenting on the principal drivers of growth, the report states that digital distribution of content, aided by rising broadband penetration, will be the greatest driver of new entertainment and media spending in 2005-2006. However, piracy and unauthorised use of copyrighted material will continue to limit growth throughout the forecast period, especially in recorded music.
The outlook also forecasts a gradual rebound with the ad market beginning to re-solidify in 2002, gaining strength in 2003, and turning out strong single-digit growth during 2004-06. Global advertising spending is predicted to increase at a 4.8 per cent CAGR, reaching a total of $405 billion in 2006, compared to $321 billion in 2001.