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March 12, 2006

Media & Entertainment industry to grow at 19%

A study by FICCI-PricewaterhouseCoopers has predicted that the Indian Media & Entertainment industry will grow at 19% to touch Rs. 83,740 crore by 2010 from its current size of Rs.35,300 crore, reports news agency PTI.
With an estimated 28 million Indians already hooked on to the internet, internet advertising in India is presently worth Rs 100 crore. With the broadband slowly becoming popular, the segment would show a compound annual growth rate (CAGR) of 50 per cent.

...In terms of value though, television would dominate the industry with the size growing three times from Rs 14,800 crore to a whopping Rs 42,700 crore by 2010 with the CAGR at 24 per cent. Subscription revenues which will be the key drivers for the growth, would increase from the number of pay TV homes and increased subscription rates. New distribution platforms like DTH and IPTV will only increase the subscriber base and push up the subscription revenues.


Arun Natarajan is the Founder of Venture Intelligence India, which tracks venture capital activity in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.