PricewaterhouseCoopers’ 2009 edition of the Indian Entertainment and Media Outlook projects a growth rate of 10.4% for the media and entertainment industry in 2010, on the back of improved economic conditions. The report predicts that for the remaining years of the forecast period, the industry will continue to grow at increasing rates, resulting in the overall compound annual growth rate for the period 2009-13 of 10.5%.
The report, featuring forecasts and analysis of key industry segments, includes sectors such as television, filmed entertainment, print media (newspaper and magazine publishing), radio and emerging segments like music, animation, gaming, Internet advertising, out-of-home advertising and sports. Advertising spending slowed to 11.3% in 2008 as compared to 20.7% in 2007 and total growth in the entertainment and media industry in 2009 is projected to be 8.3% and will return to double digit growth in 2010.
Timmy Kandhari, leader India Entertainment and Media practice, PricewaterhouseCoopers said, “The slowdown in growth requires the E&M industry to revisit their short term business plans and strategies. However, double digit growth is expected to return over the forecast period with India recording one of the highest growth in the E&M industry as well as in advertising spending in the world, along with China.”
Following are some of the projections for key industry segments:
The television industry is expected to continue to be the largest contributor to the overall industry revenue pie. It is expected to grow at a stable rate of 11.4% cumulatively over the next five years, from an estimated Rs. 244.7 billion in 2008. The overall television industry is projected to reach Rs. 420 billion by 2013. In the Television pie, television distribution is projected to garner a share of 60% in 2013. The TV ad industry is projected to command a share of 41.0% in 2013, having increased from its present share of 39.0% in the total ad industry pie. The relative share of the television content industry is expected to remain constant at 4%.
The print industry is projected to grow by 5.6% over the period 2009-13, reaching Rs. 213 billion in 2013 from the present Rs. 162 billion in 2008. The relative shares of newspaper publishing and magazine publishing are not expected to change significantly. These are expected to remain the same at around 87% in favour of newspaper publishing. Magazine publishing is expected to grow at a higher rate of 6.5% as compared with newspaper publishing which is expected to grow at 5.6% for the next 5 years.
The radio industry is projected to grow at a CAGR of 18% over 2009-13, reaching Rs. 19 billion in 2013 from the present Rs. 8.3 billion in 2008. That’s more than double its present size.In terms of its share of the advertising pie, it is projected that the radio advertising industry will be able to increase its share from 3.8% to 5.2% in the next five years.
The report sees the key driver for the music industry over the next five years as being digital music, and its share is expected to move from 16% in 2008 to 60% in 2013. Within digital music, mobile music is expected to continue to increase its share and maintain dominance.
Internet advertising is expected to grow by 32% over the next five years and reach an estimated Rs. 20 billion in 2013 from the present Rs. 5 billion in 2008. The share of online advertising too is projected to grow from 2.3% in 2008 to 5.5% in 2013 of the overall advertising pie.
The report estimates the size of the Out of home (OOH) advertising spend to be Rs 15 billion in 2008. This figure is projected to become almost twice its current size in 2013 (Rs 25 billion). Its share in the total ad pie is expected to go down marginally to 6.8% in 2013 from a current level of 6.9% in 2008.