India's entertainment and media industry to touch $28.9 billion by 2012: Report

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According to the joint report titled, "Indian Entertainment and Media Industry 2008 Sustaining Growth," the Indian entertainment and media industry grew 17 percent in 2007, beating growth forecast by 2 percent, to touch $12.82 billion, up from $10.95 billion in 2006. The industry will grow at a compounded annual growth rate (CAGR) of 18 percent to touch $28.9 billion by 2012, the report said.

During the same time, the global entertainment and media industry will grow beyond $2 trillion, it estimated.

"Rising income levels and consumerism bred from the country's strong economic growth are creating a growing demand for entertainment. This coupled with technological advancements, policy initiatives taken by the Indian Government that are encouraging the inflow of investment and initiative by private media companies, will prove to be the key drivers for the entertainment and media industry," the report said.

"The performance of the Indian entertainment and media industry has surpassed the performance of the Indian economy and most other industries in 2007. In the last four years (2004-07), the industry recorded a cumulative growth of 19 percent on an overall basis," it said.

"It is clearly an exciting time to be part of the ever-expanding entertainment and media industry. All of us at PwC continue to stay on top of new trends and developments. This year's report manifests how the Indian entertainment and media industry is reaching a stage of maturity with technology acting as a major enabler," said Deepak Kapoor, managing director, PwC India.

"The Indian entertainment and media industry is expected to outgrow the Indian economy in every year from now till 2012," he said.

"The industry has posted robust growth, in fact, a couple of percentage points higher than what we projected last year, which is a great thing," said Timmy Kandhari, executive director and leader (technology, infocomm, entertainment and media practice), PwC India.

"Digitalization is the future for most segments and companies have to adopt this revolution with appropriate infrastructure, relevant business models, and technology upgrades along with associated costs. The pace of adoption will determine industry dynamics," Kandhari said.

"In the next five years, there will be a significant rise in online digital streaming, digital movie/TV downloads, video-on-demand, music downloads from the Internet, music downloads to wireless phones, online advertising, online video games, and wireless video games. Digitization will help reduce costs for content and delivery in the long run, and thereby, shift the emphasis to quality," he said.

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