Indian entertainment industry to grow to Rs 588 billion by 2010: CII-KPMG report
The entertainment industry, which is currently valued at Rs 222 billion, is expected to grow to more than Rs 588 billion by 2010, says the recent CII-KPMG report.
The entertainment industry, which is currently valued at Rs 222 billion, is expected to grow to more than Rs 588 billion by 2010, says the recent CII-KPMG report. While releasing the report on the Indian entertainment industry titled, ‘Focus 2010: Dreams to Reality’, Subhash Ghai, Chairman, CII National Entertain-ment Committee (CIIN-EC), said, “The report, an initiative under the CII’s ‘India — The Big Picture’ focus is an effort to present a critical analysis of the sectoral constraints faced by the industry; impediments to its growth; the need for concerted action; and hence, archive its true potential. One of the key imperatives that can realise this potential is the need for focus and effective collaboration between the key stakeholders.”
The analyses presented in the report entailed a combination of KPMG’s in-house knowledge base of the Indian entertainment industry; extensive discussions with key members of the CIINEC and other experts. Rajesh Jain, National Industry Director, Information Communication, Entertainment, KPMG India, explained that while films in India represented the evolution in culture, television represented the economic revolution. Television is expected to grow from advertising revenues and subscription revenues.
Jain said, “From an asymmetrical push model, we are moving to symmetrical model. We are poised for a second wave of growth. The contribution of TV would be as much as 60 per cent.” Other segments of the industry are also set to see growth with films tripling in size, radio growing four times and the music company expected to recover. Jain listed a ten-point action plan that the industry players should follow: which included matters on governance, revenue diversification, technology and organisational effectiveness. Jain ended his presentation by saying, “Importantly, we should remember that Govern-ment is merely a facilitator. Action has to be taken by the industry and this can best be expressed by the quote, ‘You should be the change you wish to see in the world’.”
Executive Summary
The Indian entertainment industry is on the verge of a take-off, powered by new delivery platforms and technological break-throughs; increasing content variety and favourable regulatory initiatives. This is expected to transform the entertainment landscape with more players entering and traditional players being forced to adapt or perish.
India has been the fastest growing economy in the world in 2004 (8.2 per cent). In terms of purchasing power parity, it is already the fourth largest economy in the world. The 300 million strong middle class allocates a larger share of its monthly expenditure on entertainment. The industry is at an inflection point and is geared up to enter the second stage of growth powered by the twin engines of technology (availability of quality infrastructure and accelerated penetration of digital connectivity) and an enabling regulatory environment.
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