The Confederation of Indian Industry (CII) envisages a revolution in the multimedia sector in India with film, TV, cable and other entertainment segments raising a combined revenue of Rs 13,000 crore in 2001 up from Rs 10,000 crore in 2000.
CII announced 2002-2003 as the year of multimedia and released a report showcasing the multimedia industry at its event "Entertainment: The Multimedia Way" held in Mumbai, where it unveiled CII Year of Multimedia logo.
According to the report, India has become a favoured market for outsourcing work for the multimedia industry. In 2001, major Hollywood and European studios outsourced services worth $300 million to India. With the added advantages of an English speaking population, cost-effective production and trained manpower, India is the new potential Mecca for the worldwide $30 billion multimedia industry.
According to a report by Arthur Andersen, the current size of the entertainment industry is Rs 9,600 crore and will grow to an estimated Rs 28,600 crore by 2005. This report also predicts that by 2005-2006, advertising revenues will contribute 0.5 per cent to the country's GDP, up from 0.4 per cent a year ago. The live entertainment and event management segment has grown from just Rs 2 crore in 1991 to the current Rs 150 crore and is expected to grow further.
Not only are the prospects of taking Indian films outside the country looking up, within India too, there is a change happening, involving film makers, their audiences and all those service providers who contribute to the whole process of the business of films, says the CII report on Multimedia.
The report says that the Digital technology is revolutionizing the film industry in the creation and delivery of content, leading to significant improvements in quality, ease of handling and distribution. A very important part of the digital revolution in films and TV is the development in the field of post-production.
But digital processing and post production is a comparatively new development in India. Experience and exposure to overseas clients will see Indian creative talent evolving to international levels.
Quoting the Andersen research, the CII report states that the Indian music industry was worth around Rs 1,350 crore in 2001, as compared to Rs 1,250 crore in 2000. Legitimate sales, however, put the figure at Rs 810 crore, up from 750 crore in 2000 since piracy has accounted for the rest.
The entry of digital technology has impacted the market in a small way so far, though looking into the future, industry pundits predict a much better scenario. By 2006, the music segment is projected to grow to Rs 2000 crore. with legitimate sales accounting for Rs 1,200 crore.
Since digital delivery is superior in quality of sound to non-digital, in time, it has to grow as falling prices of hardware and software drive more sales. Price cuts have already started to take place.
With the proliferation of digital media, some interesting developments have happened that could set the pace for a revolution in music distribution in the near future.
The digital gaming segment is India is at a very nascent stage with just a handful of companies involved in it.
Industry estimates put the size of the gaming segment in India at Rs 40 crore in 2001 and the annual growth rate around 35 per cent. Since computer penetration is still comparatively low, the spread of gaming to that extent has been restricted.
However, between 1996 and 2001, the home computer segment grew at a whopping 71 per cent according to a MAIT IMRB study and if the pace keeps up, the potential is huge.
The global animation industry is also expected to touch $70 billion by 2005.
The demand for animation programming and the business of animation production have expanded dramatically over the past decade.
Overall, multimedia has arrived in a big way globally, according to the report and India plays a significant role in contributing to the technology and manpower required by the industry.