While TV will be a big growth driver, the film biz will also grow steadily, predicts a report
The Indian entertainment industry is expected to double its revenue to $37.2 billion by 2018, growing at a compound annual rate of 15 percent, according to a new study.
An annual report by consulting firm PricewaterhouseCoopers India and the Confederation of Indian Industry said that in 2013, the Indian entertainment industry recorded revenue of about $18.3 billion, a 19 percent gain over the previous year. The entertainment industry has contributed strongly to India’s economy, according to other recent reports.
Thanks to robust subscription trends, television continues to dominate the overall industry pie. Total TV revenue (including advertising) reached $7 billion in 2013, up about 15 percent from $ 6.1 billion in 2012. By 2018, TV revenue is expected to double from existing levels to about $14 billion. International production companies have taken note of the growth and looked at opportunities in India.
The film industry was estimated at about $2.06 billion in 2013 and is projected to grow steadily at a compound annual growth of 12 percent by 2018 to touch $ 3.6 billion. The report states that higher domestic and overseas box-office collections and cable and satellite TV rights for movies will continue to propel film revenue.
The fastest growth is seen in the digital space, with Internet access revenue touching about $4.2 billion in 2013, up 47 percent over the previous year, becoming the second highest revenue generator for the overall industry after TV. Internet access revenues were slightly higher than total print revenues (advertising and subscription), which hit about $3.8 billion in 2013, signifying the growing dominance of digital over traditional media in India.
Similarly, Internet advertising revenue is also a strong contributor, growing at 26 percent. It is slated to become the third largest segment, with a 16 percent share, of the overall advertising revenue pie by 2018.
Total advertising revenue reached $5.73 billion in 2013 and is expected to rise to $9.8 billion by 2018, registering a compound annual growth rate of 13 percent.
Given the growth of new media, the report predicts that the share of print revenues in the overall industry pie is likely to fall from 20 percent in 2013 to 14 percent by 2018. Similarly, the share of the film industry is also expected to drop slightly from 11 percent to 10 percent over the same time period.