[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
[HCDX] India: FM radio will grow to a Rs1, 800 crore industry by 2012
India?s media and entertainment industry grew 17% to
reach Rs50,000 cr in 2007
Last year, which saw the biggest global players
testing waters in the Indian media and entertainment
sector, the industry grew 17% over the previous year,
reaching the Rs50,000 crore mark, according to a joint
report by industry body the Federation of Indian
Chambers of Commerce and Industry (Ficci) and audit
firm PricewaterhouseCoopers.
While the mainstream sectors such as print, television
and filmed entertainment continued to grow robustly,
emerging segments such as animation, gaming and visual
effects, radio, out-of-home advertising and online
advertising grew faster, although on a much lower
base. The report forecasts sustained growth for the
next five years, estimating that the industry will
grow to an overall size of Rs1.16 trillion by 2012.
The report predicts a cumulative growth of 18% for the
sector during the period.
?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 of
technology, infocomm and entertainment and media
practice at PricewaterhouseCoopers.
Advertising, which contributed Rs19,600 crore or 38%
to the revenues generated by the media and
entertainment industry, grew 22% year-on-year in 2007,
the report says.
Foreign direct investment (FDI) into the sector surged
to $211 million (Rs854.55 crore), against $89.18
million in 2006. ?FDI will continue to go up in the
coming years,? Kandhari said. The year 2007-08 was
marked by the entry of media and entertainment
conglomerates?Viacom Inc., NBC Universal Inc. and Walt
Disney Co.?into India through partnerships with
Network 18 Group, NDTV Networks Plc. and UTV Software
Communications Ltd, respectively.
The television industry grew 18%, the only big sector
to grow at a rate above the industry average. The
report notes that digital distribution platforms such
as direct-to-home (DTH) are transforming the industry
as such addressable technologies ensure more
transparency and higher revenues from subscription.
The study said the number of DTH subscribers would
grow cumulatively by 44% every year over the next five
years. The high growth in advertising revenues and
emergence of new revenue streams such as from SMS
(short message service) are driving the launch of new
channels, the report says.
Print media?s growth in 2007 at 16% was lower than the
industry average and the report indicates it will
continue to grow below the average over the next five
years, as well. The report predicts the sector?s
cumulative annual growth rate, (CAGR), for 2008-12 at
14%, four percentage points below the industry
average. The report, specifically notes the increase
in regional language publications and the action in
the magazines space, with a slew of niche launches.
Filmed entertainment grew 14% on which the CAGR for
2008-12 is predicted at 13%. The report notes several
trends that are changing the nature of the industry.
Emergence of revenue streams such as mobile phones,
Internet, home video, merchandise, re-make rights and
branded entertainment as well as the advent of the
studio model of production will continue to grow
de-risking the business, the report says. FM radio
will grow to a Rs1,800 crore industry by 2012, up from
Rs620 crore now. When asked if the possibility of an
economic slowdown dampened the overall outlook,
Kandhari said: ?We have factored that in (the
report).?
?TV market to grow at 16%?
A Hong Kong-based independent research firm focusing
on Asia?s media and telecommunications industry has
made a slightly different projection for the Indian
television industry. The market will grow at an
average annual rate of 16% to reach $11.6 billion
(Rs46,922 crore) by 2012, Media Partners Asia said in
its annual report, ?Asia Pacific Pay-TV and Broadband
Markets 2008?. It said the sector will grow to $19
billion by 2017.
According to its study, the increasing footprint of
digitized distribution systems such as DTH will see
subscription revenues climbing from $3.8 billion
currently to $7.8 billion by 2012 and $12.3 billion by
2017. The number of digital pay-TV subscribers
including cable, DTH and Internet protocol TV, could
grow to 28 million by 2012 and 15 million by 2017, it
added.
While steady economic growth and increasing cable TV
penetration continue to boost the growth of TV
advertising, the study says TV?s share of the ad pie,
which in 2007 was 42%, will come under threat in the
long run from the growth of out-of-home media, radio
and online advertising. It said advertising on TV will
grow at an average annual rate of 19% between 2007 and
2012 to reach $3.5 billion and further to $6.3 billion
by 2017.
http://www.livemint.com/2008/03/17000855/India8217s-media-and-entert.html
///////////////////////
For Contact: Jaisakthivel,59,Annai Sathya Nagar,
Arumbakkam,Chennai-600106,India
Visit: www.dxersguide.blogspot.com
www.sarvadesavaanoli.blogspot.com
Join: www.groups.yahoo.com/group/sarvadesavanoli
Mobile: +91 98413 66086
///////////////////////
Bring your gang together - do your thing. Go to http://in.promos.yahoo.com/groups
---[Start Commercial]---------------------
Order your WRTH 2008:
http://www.hard-core-dx.com/redirect2.php?id=wrth2008
---[End Commercial]-----------------------
________________________________________
Hard-Core-DX mailing list
Hard-Core-DX@xxxxxxxxxxxxxxxx
http://montreal.kotalampi.com/mailman/listinfo/hard-core-dx
http://www.hard-core-dx.com/
_______________________________________________
THE INFORMATION IN THIS ARTICLE IS FREE. It may be copied, distributed
and/or modified under the conditions set down in the Design Science License
published by Michael Stutz at
http://www.gnu.org/licenses/dsl.html