The Media & Entertainment Industry

With A.R. Rahman and Resul Pokutty having won Oscars for their commendable work in Slumdog Millionnaire, the spotlight has shifted on India and the immense talent and potential it offers. Another Indian who has been in the news recently is Raju Narisetty, a prominent journalist, who has been appointed as the managing director of the Washington Post, a leading US daily.

This shows that the media and entertainment industry in India is likely to grow 12.5 per cent per annum over the next half-a-decade and touch USD 20.09 billion by 2013, according to a report released by KPMG and FICCI. It is also quite evident according to a 2009 report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow at a compound annual growth rate (CAGR) of 12.5 per cent per annum over the period between 2009-13 and touch US$ 20.09 billion by 2013.

The Indian E&M industry is expected to reach for greater heights. It has been estimated that it would touch $18.58 billion by 2013. While the global E&M market is expected to grow 2.7% compounded annually over the five year forecast period to $1.6 trillion in 2013.

The television industry in India is currently at its prime, contributing the largest share in the total media and entertainment industry. While India is the third largest cable television market in the world, the penetration level of pay TV is still low, which promises a huge untapped potential for growth. The study by FICCI and KPMG reveals that the television industry, which is currently valued at about US$ 4.63 billion, will expand by 14.5 per cent between 2009 and 2013.

Digital distribution platforms such as direct-to-home (DTH) and Mobile TV are transforming the industry. Mobile TV is poised to grow big with the advent of 3G, according to experts. With the DTH industry estimated to grow by almost 100 per cent in the 2009-10 fiscal—from US$ 310.16 million in 2008-09 to an expected US$ 620.25 million in 2009-10—leading DTH firms such as Sun Direct, Bharti Airtel DTH and Big TV have increased their marketing budget by 20-25 per cent in the fiscal year 2010.

This is the era of globalization and digitalization. Henceforth, digital music will serve as the important driver for the music industry over the coming years and its share is expected to move from 16 per cent in 2008 to 60 per cent in 2013, as per a PwC study.

One could even witness so many upcoming radio channels that serve audiences having different needs and mindsets. The radio industry is forecast to grow at a compound annual growth rate (CAGR) of 18 per cent over 2009-13, reaching US$ 391.15 million in 2013 from the present US$ 170.87 million in 2008.

Advertising trends showed a healthy growth in the last five years as marketers sought to woo customers for a wide range of products.

Consequently, there are so many online portals nowadays that cater to the advertising needs. The MNCs, the corporate houses and even the advertising agencies largely rely on “Internet advertising” for the sales and promotion of their products and services.

With music channels giving less space to music programming to accommodate game shows and reality shows, independent music bands such Workshop Them Clones are increasingly looking to promote their videos by making them available online.

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