PricewaterhouseCoopers is upbeat in its growth predictions for the Indian media and entertainment industry in 2010, after 2009 saw it limping at a growth rate of a mere 2.2 per cent.
According to the PwC report, Indian Entertainment & Media Outlook 2010, entertainment and media will grow cumulatively at 12.4 per cent CAGR (cumulative annual growth rate) up to 2014.
Advertising spends are showing a rebound with business confidence returning to the market as well as with innovative structuring, the report stated. It predicts that ad spends will grow at 11.4 per cent CAGR over 2010-2014.
The slow growth in 2009, according to the report, was largely due to lower than expected uptake in ad spends, which registered no growth and affected sectors such as print, out-of-home (OOH), radio and internet. Negative growth in filmed entertainment also affected the growth.
But, said Timmy Kandhari, leader – entertainment & media practice, PricewaterhouseCoopers India, "many of the factors which caused the slowdown in 2009 are not likely to persist. With confidence returning alongside a likely increase in consumer and ad spends, the E&M industry is looking to get back to its high growth trajectory."
According to PwC projections, while practically every medium will grow between 2010 and 2014, OOH, the medium which carries targeted ads at retail outlets and public places, will, in spite of recording absolute growth in revenues from Rs 1,250 crore in 2009 to 2,100 crore in 2014, will actually see a marginal dip in share of overall ad pie from 5.8 per cent in 2009 to 5.6 per cent in 2014.
Music, on the other hand, will grow at a CAGR of 28.6 per cent over 2010-2014, to touch a turnover of Rs 2,650 crore in 2014. Growth will come due to the uptake in the mobile value added services market. The key growth driver over the next five years will be digital music, with its share expected to move from 29 per cent in 2009 to 75 per cent in 2014 of total music sales.