<font color="#FF0000"><b>FICCI Frames ’05</b></font>: Entertainment industry set to grow by 18% per annum

The much-awaited annual report on the Indian entertainment industry, prepared by PriceWaterHouseCoopers and released on Monday at the FICCI Frames seminar in Mumbai, pegs the size of the sector at over Rs 45,000 crore in 2009 from the current Rs 20,000 crore.

This will be achieved on the back of an 18 per cent growth compounded annually over the next five years.

The key drivers of this growth will be television, followed by films, says the report.

The latter, in particular, will ride on the multiplex phenomenon as well as digital distribution. Better realisation in box office collections in India and overseas coupled with the emergence of the home video segment will drive the growth of the sector.

The future of the television industry will revolve around the digitalisation of the medium, notes the study. “Resolution of current challenges in distribution will help define content formats and viewership patterns of consumers,” it adds.

Animation and gaming, which are emerging sectors at the moment, will be driven by co-productions as well as securing rights over content produced.

The music industry, plagued by piracy, and riding at the same time on a remix and video album boom, will see the emergence of new platforms of delivery such as mobile phones that will eat into traditional formats such as CDs and cassettes, the study says.

Radio and live events are also set to register growth over the next few years on the back of an increase in advertising and marketing spends.

“The radio industry will boom when there is greater availability of frequencies as well as a rationalisation of license fees. The size of the sector could treble to about Rs 650 crore by 2009,” adds the study.

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