Media & entertainment will be Rs 1-trillion industry by 2011

MUMBAI: The growth story of India's entertainment and media (E&M) industry is unfolding spectacularly as it is set to touch the Rs 1 trillion-mark in just four years time, a study has indicated.

Growing at a compound annual growth rate (CAGR) of 18 per cent, the industry, which currently hovers around Rs 437 billion, is expected to outgrow the country's economy, the FICCI-PricewaterhouseCoopers study showed.

"This growth is partly due to the several positive measures taken by the government," a joint statement by PricewaterhouseCoopers Managing Partner Deepak Kapoor and Executive Director Timmy S Kandhari said.

"It has also been boosted by technological advancements, entry of large corporate players into all segments of the industry," the report said.

According to the study, the E&M industry is growing at a faster rate than the country's economy because of its income elasticity, wherein when income rises, more resources are spent on leisure and entertainment than on necessities.

The study foresees the growth being chiefly led by radio and television which will clock 28 and 22 per cent, respectively.

Television will continue to contribute the largest share of revenues to the industry with its size expected to grow from the current Rs 191 billion to Rs 519 billion by 2011, it says.

In hot pursuit are film entertainment (16 per cent), out-of-home advertising (17) and live entertainment (16).