Kolkata, Sept 13 (Calcutta Tube / IBNS) Television industry is estimated to reach US$ 8.0 billion by end of 2012, said a recent study. The media and entertainment industry is at an inflexion point with digital being the buzz word.
Convergence between entertainment, information and telecommunication is increasingly impacting India’s overall media and entertainment industry, where Television is still the ‘King’ and ‘advertising on TV’ is still the most influential media source to impact buyers decision.
The television sector in India has grown at ~12%p.a. (2007-2010) and is estimated to continue this strong growth, owing to healthy advertising spends and increased penetration in semi-urban and rural areas, mainly by DTH.
By the end of 2011, the industry is estimated to reach US$ 7.1 billion, a growth of ~14% over 2010. Similarly, the Indian film industry has come a long way and is going to complete its century in 2013. The film industry is expected to grow by ~9% pa till 2015 and reach nearly US$2.8 billion.
The Indian animation entertainment industry is highly fragmented and still in its nascent stage.
Indian players are primarily involved in the labour-intensive production and post-production activities, as a ‘Service Provider’, working on the revenue model of ‘Work-For-Hire’.
In spite of this set up, the Indian Animation market is expected to grow at CAGR of ~23% to reach US$961 million by 2013.
In a recent white paper launched by Deloitte and ASSOCHAM, Sandip Biswas, Director, Deloitte Touche Tomhatsu India Pvt Ltd opined, “Digitalization is the buzz word. The future of India’s media and entertainment landscape looks extremely promising, especially with the ‘sunset of analogue transmission on the cable’ by December 2014.
“This also implies new business models and revenue streams for a variety of new players becoming a part of the new media ecosystem. With increasing importance of new media along with customers increasingly adapting their preferences to these devices and technologies, the media and entertainment sector certainly is marching towards new horizons of growth.”
Similarly, in television and film industry more sophisticated digital production and post-production techniques coupled with the factors such asforay of big corporate houses across the value chain, growth of digital distribution and exhibition, primarily through increasing penetration are increasingly influencing these segments in India.
Sujata Dev, Co-chairperson, Media & Entertainment Committee, ASSOCHAM, said, “Every segment within the media and entertainment ecosystem is getting impacted by digitalization in a significant manner. Digitalization is expected to bring addressability into the system, superior viewing experience and value added services (VAS) which in effect would have a positive bearing on the ARPU, which today is one of the lowest in the world.
“In effect digitalization will be a win-win-win for customer-operator-government. The speedy migration to digital is what the industry is looking forward to. The Government has a huge role to play by framing the right policies.”