Entertainment industry may double by 2012: Good news for the Investors of Kohinoor Broadcasting Corporation Ltd and K Sera Sera Productions Ltd: Nirmal John

Wednesday, March 26, 2008 PwC-Ficci report says the industry may top Rs1.16 lakh cr in four years

MUMBAI. It could well be a case of ‘happily ever after’ for the country’s media and entertainment industry.With the industry expected to grow at a cumulative annual growth rate (CAGR) of around 18% over the next five years, it is expected to more than double from an estimated size of Rs 51,260 crore last year, to Rs 1.16 lakh crore by 2012. Further to showing steady growth, the industry also seems to be reaching a stage of maturity according to the report released by Ficci and PricewaterhouseCoopers (PwC) at the annual media convention Ficci-Frames.While most sectors are showing buoyancy, newer ones like online advertising stand out with a growth of 69% in the past year. Such growth is expected to continue for the next few years and the size of the industry is expected to reach Rs 1,100 crore by 2012, up from its current levels of Rs 270 crore. Like in other media, an opportunity could arise when vernacular content increases on the internet. This could then reach out to all sections of society with the help of both mobile phones which experts say would be the carrier for internet in India more than computers.For the movie industry, most of the positives came from the growth in additional revenue streams such as home video and merchandising. This is helping to de-risk the movie business, which further aid in attracting new investors in films.Timmy S Khandhari, executive director, PwC said, “The entry of players like Moser Baer has changed the entire way of looking at the business for most of the production houses.” This coupled with the reduction in distribution costs as a result of digital screens, could help the industry grow at a CAGR of 13% to reach Rs 17,500 crore by 2012. [From Internet]