The entertainment industry in India is all set to reach dizzying heights, despite the global recession, in the next five years. The total size of the industry is said to be $21 billion by 2013, according to a recent Ficci & KPMG report.
Bollywood and advertising media will be the major contributors towards this growth.
Dr Amit Mitra, secretary general, Ficci says, “India is one of the few countries where economic growth will be led by domestic consumption. With a low advertising spend to GDP ratio of 0.47 per cent, a growing consumer class, and middle class, young population, low media penetration and increasing discretionary spending; India continues to be an attractive market for Media & Entertainment”.
This report has come in the wake of a growth of over 12% during the last year. More and more Bollywood movies are now being made and quite a many have been extremely successful at the box office. Probably, this was the reason that an average movie like Ghajini, which was released just recently, became the highest grosser in the history of Indian cinema.
The report also highlights the fact that advertising media will be a major contributor despite the earlier projections being downsized by 5%. TV media is experiencing an unprecedented growth thanks to new reality shows and rise of the ‘entertaining news’ viewership. Services like DTH have also been helpful in broadcasting.
One disappointing point of the report was that the music industry is facing a negative growth after 2005. The degrowth was around 5% during the past three years and it is a serious issue that should be taken care of.