Mumbai, July 29 (IANS) With new markets opening up, the Indian entertainment and media sector is poised to witness about 18 percent annual growth in the next five years, according to a recent study conducted by consultancy and auditing firm PricewaterhouseCoopers (PWC).
The study, titled ‘Global Entertainment and Media Outlook 2008-2012’, says India, along with other BRIC nations – Brazil, Russia and China – will see an economic growth of around 13.6 percent as against 5.9 percent growth that the rest of the world will witness in this period.
It predicts the Indian entertainment sector, particularly, will be more vibrant following increased collaborations and investments by global entertainment companies. “No single company will be able to go it alone over the next five years. The challenges are too significant and the demand for innovation too complete,” the PWC study says.
Synergy with the emerging technologies will give impetus to the Indian entertainment sector, it added.
“Technologies will influence both the pace and direction of entertainment and media growth. Broadband penetration continues to accelerate globally. Mobile is gaining ground quickly. Modern movie houses, digital cinemas and 3-D upgrades are enhancing cine-going experience, while high-definition television subscriptions and a resolution DVD format wars will invigorate digital living rooms,” the study said.
It said by 2012, mobile revenues alone would account for 11 percent of $2.2 trillion spending on entertainment an media globally. According to PWC, this would be accounted for mostly by the Internet generation, the population of which would increase from 1.1 billion to 1.25 billion.
The study said what was now creating a balance is the spending habit of consumers above the age of 50 years because of their preference for traditional media.
Spending in Asia Pacific on technology-driven media will average 8.8 percent CAGR (compounded annual growth rate) – the second highest in any region – increasing from $333 billion in 2007 to $508 billion by 2012, thanks to rising disposable incomes and an increasingly urbanised middle-class, the study said.
At the same time, it underscores the importance of continuing to extract revenues from traditional business segments while emerging technologies solidify their position.