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

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According to the report, the Indian film industry's revenue rose 14 percent in 2007 to $2.4 billion and is projected to touch $4.4 billion by 2012, growing at a CAGR of 13 percent. Faring better are overseas revenues and home video, both of which showed even stronger growth - up 15 percent on 2006.

Emergence of various revenue streams beyond traditional box office, such as television, mobile, internet, home video, merchandise, music, re-make rights and several branded entertainment opportunities, is changing the face of the Indian film industry, the report said, adding that advent of Hollywood style 'Studio Model' is further "de-risking the business."

The year 2007 saw Sony Pictures debut its Bollywood production "Saawariya" (Beloved) and Warner Bros. announced its maiden India venture, "Made in China." There are also unconfirmed reports that 20th Century Fox also is readying India plans.

While players like Moser Baer is transforming the Indian business model for home video from rental to a sell-through, talent is becoming 'commoditized' and there was a huge rush in 2007 to "lock-in" talent for a long-term period, the report said.

Indian advertising industry has also experienced a "paradigm shift, with digital platforms enabling to reach the critical mass," the report said. This has resulted in consumers shifting from passive mediums to spending more time on digitally interactive mediums. Internet and mobile are two keys enablers for the same, it said.

The advertising industry touched $4.9 billion in 2007, growing 22 percent year-on-year, up from $4.02 billion in 2006, the report said. At present, advertising contributes 38 percent to the entire entertainment and media industry's revenues.

According to the report, Indian advertising will become a $11.3 billion industry by 2012 from $4.9 billion in 2007. At present, print advertising with a 48 percent share, contributes the most to the advertising industry, followed by television. By 2012, it is estimated that the share of both television and print advertising will be the same at 44 percent.

Out-of-home (OOH) advertising touched $312.5 million in 2007, growing 25 percent year-on-year over 2006 and is expected to touch $600 million by 2012, growing at a CAGR of 14 percent.

Online advertising, touched $67.5 million in 2007 growing at a robust pace of 69 percent, and is expected to touch $275 million by 2012 at a CAGR of 32 percent.

As for the print media industry, the other large traditional media segment other than television and film entertainment, favorable FDI policies and manifested growth potential especially in the high-end niche genres saw launches of new magazines and increase in regional publications in 2007, the report said, adding that the print media industry grew 16 percent year-on-year to touch $3.7 billion in 2007. It is expected to grow at a CAGR rate of 14 percent to touch $7 billion in 2012, the report added.

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