The Indian media and entertainment sector continues to grow at a 15% in the first quarter of 2008. According to Cygnus Business Consultant, a Hyderabad-based research firm, the Indian media and entertainment industry is estimated to grow by 18% over the next four years. By 2011 it could be worth $28.6 billion.
India is the largest producer of films in the world. The film industry is expected to expand to $4.35 billion by 2012. This is also because revenue streams are flowing from untraditional sources like television, mobile, internet, home video, merchandise, music, re-make rights, several branded entertainment opportunities.
The broadcast industry is rapidly growing with the advent of new technologies like Direct to Home television (DTH), Internet Protocol Television (IPTV), Conditional access system (CAS) and others. India currently has over 130 million TV households and is estimated to have more than 75 million cable homes with immense market potential and tough competition.
The multiplex industry is also booming. Multiplex screens in India are estimated to reach 5,000 by 2012. Per a report by Systematix Institutional Research Multiplexes megaplexes together contribute to 28 per cent of the total theatrical sales in India.
According to a report by NASSCOM and Ernst & Young, the animation industry in India, currently estimated at US$ 460 million, is also expected to grow to US$ 1,163 million by 2012.
The reform measures adopted by the Government of India have given a huge booster to the Indian entertainment and media industry. FDI up to a 100% is permitted through the automatic route for the film and advertising industry and foreign holding of 49% is allowed in cable TV and DTH.
With the policy reforms and opening of the film sector to foreign investments the industry is being flocked by global production houses. The Indian entertainment companies are exploring joint business deals with their foreign counterparts. Foreign investments in the industry were reported to have reached a record high of US$ 211 million in 2007. Major Hollywood studios like Viacom, NBC, Universal, Sony and Disney have already made significant investments in India’s entertainment sector. Many domestic players have also set up overseas distribution offices. Venture Capitalists are also seeing huge incentives to invest in India’s entertainment sector.
