PricewaterhouseCoopers (PWC) has come out with its Indian Entertainment & Media Outlook 2010 report, which highlights the growth of the Indian entertainment and media industry, along with pointing out some trends. The 2010 edition of the report has forecasts and analysis of eight industry segments – television, filmed entertainment, print media comprising newspaper and magazine publishing, radio, music, animation, gaming, Internet advertising, out-of-home advertising and sports.
According to the report, the Indian entertainment and media industry is pegged to grow by 12.4 per cent cumulatively over 2010-14 to reach Rs 1,040.8 billion.
The report also highlighted the outlook for the major segments of the Indian entertainment and media industry for 2010-14.
The television industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a rate of 12.9 per cent cumulatively over the next five years, from an estimated Rs 265.5 billion in 2009 to Rs 488 billion by 2014. Next in line is the film industry, which is projected to grow at a CAGR of 12.4 per cent over the next five years, reaching Rs 170.5 billion in 2014 from Rs 95 billion in 2009.
Similarly, print media is projected to grow by 7.4 per cent over the period 2010-14, reaching Rs 230.5 billion in 2014 from Rs 161.5 billion in 2009, while radio advertising is pegged to grow at a CAGR of 12.2 per cent over 2010-14, reaching Rs 16.0 billion in 2014 from Rs 9 billion in 2009.
Tremendous growth is seen in mobile VAS market, with the industry projected to grow at a CAGR of 28.6 per cent over 2010-14, reaching Rs 26.5 billion in 2014. As expected, the key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 29 per cent in 2009 to a whopping 75 per cent in 2014.
Again, given the trends of increased Internet usage, Internet advertising is projected to grow by 20.1 per cent over the next five years and reach an estimated Rs 15 billion in 2014 from Rs 6 billion in 2009. The estimated size of out of home (OOH) ad spend stood at Rs 12.5 billion in 2009, which is projected to reach Rs 21 billion in 2014. However, its share in the total ad pie is expected to go down marginally to 5.6 per cent in 2014 from 5.8 per cent in 2009.
Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 25.2 per cent to Rs 73.4 billion in 2014 from Rs 23.8 billion in 2009.
On the road ahead, Timmy S Kandhari, Leader – Entertainment & Media Practice, PricewaterhouseCoopers India, said, “Many of the factors, which caused the slowdown in 2009, are not likely to persist. With confidence returning alongside a likely increase in consumer and advertisement spends, the E&M industry is looking to get back to its high growth trajectory.”
Some of the other factors in the outlook are ad spends, which did not exhibit any growth in 2009, and are showing a rebound. Ad spends are projected to grow at 11.4 per cent CAGR for the period 2010-14. Another factor is the digital versus non-digital spend.
Talking about the move to digital spending, Marcel Fenez, Global Leader, Entertainment & Media Practice, PricewaterhouseCoopers, said, “Although there is consistency in inevitable migration to digital, the change continues to vary by market. Uptake in digital media could be different in a country like India due to local factors around infrastructure as well as affordability.”
This year, PwC, in association with Aidem Ventures, also conducted the Indian Entertainment & Media CEO Survey in order to understand how the E&M business leaders responded to the challenges brought about by the recession, the concerns they are facing today and their take on long-term growth prospects of the industry. The findings of the survey suggest that even though CEOs are under cost pressure, they continue to work to strengthen their organisations, while seeking opportunities emerging from structural shifts in their industry, economy and regulatory environment.
Commenting on this, Ray Nayak, Managing Director, Aidem Ventures, said, “On the whole, the Indian media CEO confidence is rising from where it was a year ago. They are now cautiously optimistic about generating revenue growth in the near term and decidedly more confident of their long term prospects.”