TRENDS AND POTENTIAL OF THE INDIAN ENTERTAINMENT INDUSTRY- AN INDEPTH ANALYSIS

Abstract

The entertainment sector in India is poised for a compounded annual growth rate of 20% according to a recent KPMG report. The key factors that are driving the growth of the media and entertainment industry in India are the favourable demographics, growing
literacy, increasing affluence, development of technology, government support and the growing interest in the Indian way of life. The never before seen growth in the sector has been the result of the growing number of television channels, FM radio channels, rising popularity of social media, growing demand for content from mobile operators which is expected to further increase with the growth of 3G services and innovations of technology. This has resulted in the availability of entertainment anywhere and at anytime at the touch of a button and has ensured wide spread reach of the industry. During the year 2010, the media and entertainment industry grew by 11 percent and recorded revenues of Rs.65,200 crore. The growth in advertising revenues by 17 per cent to Rs.26,600 crore, increase in subscription revenues, increasing variety of rich content coupled with the opportunity for its monetization and the government’s thrust to digitization are expected to aid in the robust growth of the sector. This paper is an indepth analysis of the various components of the Indian entertainment sector, the current scenario and challenges in the print and electronic space, the growth opportunities and the future potential.