India chases entertainment hub dream

India's flourishing entertainment industry has truly come of age in recent years by becoming one of the fastest growing sectors.

India's flourishing entertainment industry has truly come of age in recent years by becoming one of the fastest growing sectors of the economy riding on high growth and rising income levels, say experts.

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However, a number of factors like lack of corporatisation and rampant piracy continue to hold the industry back and significant efforts need to be undertaken to realise the dream of turning the country into a global entertainment hub.

That was the mixed bag of news presented to industry leaders and investors from across the globe who had gathered here for the three-day annual entertainment industry seminar that ended Wednesday.

Frames 2005, billed as Asia's largest convention on the business of entertainment, was organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

"In the last few years we have made great strides in all fields of entertainment and we feel proud that the world has started perceiving us as creators of high quality products," said Yash Chopra, chairperson of FICCI Entertainment Committee.

"It is now time for us to shift gears and look at the challenges that lie before us for placing the Indian entertainment industry on the global map," veteran filmmaker Chopra told IANS.

"There are many issues like corporatisation, piracy and high taxes that need to be addressed on an urgent basis by all the stakeholders to help realise the dream of transforming India into a global entertainment hub."

India's entertainment industry is expected to grow by 18 percent annually over the next five years to reach over Rs.450 billion ($10 billion) by 2009, according to an industry study report.

The largest contributor to the growth will be the television sector followed by the film segment, said the joint study conducted by PricewaterhouseCoopers and FICCI.

According to the report, the Indian entertainment industry is likely to significantly benefit from the impressive economic growth in Asia's fourth-largest economy.

"When incomes rise, proportionately more resources get spent on leisure and entertainment than on necessities," it said.

On different segments in the entertainment industry, the report said subscription revenues would drive the growth in the television business over the next five years.

Growth in television advertising is projected to grow between 12 percent and 14 percent over the next five years to reach over Rs.94 billion by 2009.

The film segment will ride on the back of the growth of multiplexes and digital distribution formats.

Better realisations in box office collections, growth in earnings from the overseas markets and emergence of the home video market will drive the growth of the film entertainment in the next five years.

Subhash Chandra, chairperson and managing director of Zee Telefilms Ltd., however, says the industry optimism must be tempered by the huge task they still face in resolving some of the major growth irritants.

Chandra told industry delegates that local entertainment content producers should not only target the Indian diaspora, but also try to corner a larger share of the global audience.

He urged the government to ensure the creation of a level playing in the domestic entertainment industry as the sector was gradually opened up for the overseas players.

"Today, there are some 350 million consumers of entertainment products in India. There are still over 700 million people who are not consuming any kind of entertainment products," said Chandra.

Amitabh Bachchan said Indian entertainment firms, especially filmmakers, must focus on devising robust marketing and promotion strategies to tap the global audience.

"These days non-Indian audience is showing increased curiosity in the Indian cinema. It is the curiosity that needs to be tapped," said Bachchan.