Top Story


Home >> Media - Others >> Article

India, China to fuel growth of media industry: PwC

Font Size   16
India, China to fuel growth of media industry: PwC

Little wonder why most of the large broadcasting companies are focusing their attention on India and China. A recent report released by the consultancy firm, PricewaterhouseCoopers (PwC) has categorically stated these two markets are key growth drivers for the entertainment and media (E&M) industry.

The global E&M industry is expected to grow at 6.3 per cent to $1.7 trillion by 2008 with the Asia-Pacific markets led by India and China expected to grow at 9.8 per cent to touch $ 366 billion.

According to the Global Entertainment and Media Outlook: 2004-08, "Asia Pacific is emerging as a key driver of E&M industry growth fuelled largely by India and China, both of which are investing heavily in communications and media infrastructure and opening up their markets. Both countries have huge populations and low media penetration, providing significant room for expansion."

"We're expecting Asia Pacific to be the fastest-growing region in the world during the next five years as a result of several exciting opportunities for industry growth and expansion, particularly in India," said Mr Deepak Kapoor, PwC India Leader for the E&M Practice.

While in the Asia Pacific region, video games and Internet will be the world's largest and fastest growing segments, television distribution will benefit from the addition of 96 million multi-channel households in India and China. However, piracy continues to be a dampener and efforts to stem its effects, combined with domestic and foreign industry investments will drive growth in the region.

In terms of size, the US continues to remain the largest market and is projected to rise at 5.4 per cent to reach $680 billion in 2008 while markets in Europe, West Asia and Africa are expected to grow at a marginally higher rate of 5.5 per cent to touch $549 billion.

The PwC report also added that there is a shift in the way entertainment is being distributed with broadband Internet access and wireless communications driving the growth. During the next five years, the number of broadband households will grow at a 31.3 percent, surpassing the 300-million mark for the first time in 2008, it added.

Also next-generation technologies will reinvigorate maturing segments. "Digital television is replacing analogue, thus expanding the potential market for advertisers and subscribers; online and wireless video games are bridging the gap until the introduction of new console platforms scheduled for 2006-07; and digital audio broadcasting and satellite radio are helping attract new national advertisers. Additionally, DVDs have revitalized home video, with rapid growth in the sell-through market driving growth at the expense of rental," said the report.

The advertising industry is also likely to remain buoyant. Global advertising spending is likely to increase by 5.3 per cent during the 2004-08 period, to touch $412 billion. Television advertising is projected to expand at a 6.5 per cent to touch $164 billion by 2008 boosted by new channels as well as advertising associated with the Olympic Games, and the FIFA World Cup.

Also, Internet advertising spending is expected to rebound. "In India telecommunication infrastructure investment will expand the Internet access, which will fuel the growth in Internet advertising spending," said Mr Kapoor.


Vijay Mansukhani, speaks to exchange4media about the resurgence of Onida, the scope of growth of consumer electronics market in India and the reasons why Indian consumer electronics brands don’t compete on a global scale

Projjol Banerjea opens up about hiring Anne Macdonald and GroupM's Rob Norman, and the brand's new identity

Meera Iyer tells exchange4media that in FY 2016/17, bigbasket clocked a revenue of Rs 1,400 crore. The online supermarket currently stands at 70,000 orders a day, with operations in 25 cities.

CMO, Kashyap Vadapalli on the start-up’s marketing play, why it has decided to stay away from IPL and response to its furniture rental apps

In terms of affiliates, India ranks on the top. Spurred by the fast growth of mobile users and hence internet users, there are millions of websites, apps, WAP-sites and blogs using affiliate marketing...

Insecurity in the workplace due to the idea of AI encroaching on your job, or being sidelined at work because of your small town background? Sandeep Goyal has the right answers to help you deal with w...

As National Sales Head at, Ashish aims to bring on board a maximum number of advertising partners and consolidate the network’s position as a leader in the space.