India among top 3 entertainment and media markets: PwC

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While PwC has estimated that Asia's entertainment and media industry would grow at 8.8 percent annually to touch $508 billion by 2012, India's entertainment and media market, it said, would grow at a faster rate - 18.5 percent annually - to reach $36.3 billion during the same period.

"There is no question that India is within all the companies that I speak to. It is either number one, two or three that they talk to us about India," said Marcel Fenez, global managing partner (Entertainment & Media Practice), PwC.

Economic boom and little government control over the entertainment and media market are the prime factors behind its double digit growth, PwC said in a report titled Global Entertainment and Media Outlook 2008-2012, adding that the Indian market would become the fastest growing territory in Asia Pacific.

Sub-segments like video game, internet access and online advertising spending are expected to grow by 51.5 percent, 45.5 percent and 35.3 percent respectively in India, the report said. India's vast youth population, its "net generation" would drive the growth, it added.

"The Net Generation continues to set the pace and direction of change in the entertainment and media industry while exhibiting an influence that is driving new business models that are revolutionizing the relationship between companies and their customers. As they make these technologies regular components of their everyday lives, the Net Generation is also driving the technology engagement of prior generations, connecting older generations with the latest trends in emerging media technology," the report said.

However, for India to maintain its growth rate, public as well as private initiatives are needed to develop the broadband infrastructure.

The report, however, said the traditional media would remain unaffected due to the 50-and-older demographic that has more spending power and devotes substantial attention to the familiar media.

"Companies are rapidly embracing new and emerging technologies in the entertainment and media industry, while adapting to the demands of the net generation. And rightly so, because it will help to drive their business forward and remain competitive in a marketplace driven by innovation. However, they must also remain focused on managing their traditional businesses, a key component and driver of their revenues. By effectively managing emerging and traditional business lines, they will be able to identify opportunities they can exploit so they can migrate to the new digital environment and meet the demands of the net-generation," Fenez said.

The report also projected that print advertising would grow at about 12 percent annually (higher than the global projection of about 3 percent annually) while television advertising would grow at 13.1 percent during the period under review.

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