PwC-Ficci report says the industry may top Rs1.16 lakh cr in four years

Entertainment industry may double by 2012

Nirmal John. Mumbai

It could well be a case of ‘happily ever after’ for the country’s media and entertainment industry.
With the industry expected to grow at a cumulative annual growth rate (CAGR) of around 18% over the next five years, it is expected to more than double from an estimated size of Rs 51,260 crore last year, to Rs 1.16 lakh crore by 2012.
Further to showing steady growth, the industry also seems to be reaching a stage of maturity according to the report released by Ficci and PricewaterhouseCoopers (PwC) at the annual media convention Ficci-Frames.
While most sectors are showing buoyancy, newer ones like online advertising stand out with a growth of 69% in the past year. Such growth is expected to continue for the next few years and the size of the industry is expected to reach Rs 1,100 crore by 2012, up from its current levels of Rs 270 crore. Like in other media, an opportunity could arise when vernacular content increases on the internet. This could then reach out to all sections of society with the help of both mobile phones which experts say would be the carrier for internet in India more than computers.
For the movie industry, most of the positives came from the growth in additional revenue streams such as home video and merchandising. This is helping to de-risk the movie business, which further aid in attracting new investors in films.
Timmy S Khandhari, executive director, PwC said, “The entry of players like Moser Baer has changed the entire way of looking at the business for most of the production houses.” This coupled with the reduction in distribution costs as a result of digital screens, could help the industry grow at a CAGR of 13% to reach Rs 17,500 crore by 2012.
The big daddy of entertainment in India still remains the television. This segment is expected to touch Rs 60,000 crore by 2012, which would constitute more than half of the total media and entertainment business in the country. The plugging of loop holes in distribution should help the industry clear one of its major hurdles. The TV industry is expected to grow at 22% (CAGR), a massive figure considering the large base of Rs 22,590 crore in 2007.
India is one of the few countries in the world where print media has been growing. This is especially evident in magazines, where a plethora of international names have debuted. Many newspapers have also been launching several new editions. As literacy rates increase, the demand for print will also go north particularly in the vernacular. To make their offering more accessible, the online and mobile space is also being targeted by most established print publishers.
On the radio scene, PwC’s Khandhari said, “The face of FM Radio changed last year with phase II of FM licenses being handed out.” An additional 560 licences will be soon handed out, thus taking the total number of Private FM stations to over 800. Complaints about the similarity of content should be addressed once current affairs and news is made available on radio. Riding on the back of such initiatives, the industry should triple in size by 2012 to Rs 1,800 crore.
Other media and entertainment businesses like animation and gaming and OOH is expected to add to the growth of the sector. Music has not caught up with the heady growth rates in other sectors, as has been witnessed globally, particularly due to the rampant piracy.
One big story is the emergence of sports, more specifically cricket, as an entertainment option in India. With cricket leagues like Indian Premier League (IPL) and Indian Cricket League (ICL) hogging the limelight, more is to be expected from sports in the next few years.
Apart from different sectors, an interesting development is the creation of media conglomerates, led especially by television companies. Apart from established players like Star and Zee, newer channels like NDTV, UTV and Network 18 are developing offerings in different media in a bid to leverage synergies.

MOBILE 'N' INVERTISING

Excerpts from an interview with Rajesh Jain, the man who almost single handedly brought on the dotcom boom to India after selling off his Internet venture, IndiaWorld.com, to Satyam for Rs 499 crore in 1999.

Two aspects to the Internet – the PC and the mobile.

PC-based access is very much around the 'reference web'. The mobile has the opportunity to be the primary mode of access and interaction for the 'incremental web' and can be used to find directions.

The challenge is to figure out innovative services for the mobile and go beyond the current value added services.

There are life's empty moments and life's ‘know now’ moments. When you are waiting for someone, for example, you are in an empty moment and you can use your mobile to check stock quotes or text someone. In the ‘know now’ moments, you want to know something immediately instead of going and searching on the web.

On the mobile, there are multiple points of interaction such as SMS or an application. On the PC, it is ultimately the browser. On the mobile, information is push based, while on the Internet, it is pull based. So, I can subscribe to content on the mobile. Just like on the Internet, the search box has become the starting point for user interaction and monetisation of the web, my belief is that on the mobile phone, it’s going to be the SMS subscription with a brand of your choice.
So, if there’s a special on the mall in the neighbourhood, you want to know. It's called 'INVERTISING' – ADVERTISING THAT CONSUMERS INVITE INTO THEIR LIVES.

If you look at the macro picture, a vast majority of the people with the ability to spend have a mobile phone. The advertising and marketing industry is not yet recognising this fact. Now, they have to think of building user engagement.

The essence is that each one of us has a desire to create multiple relationships with the kirana store or the book shop in our locality. There are a lot of things in life where it’s more convenient to get things instead of going and looking for them. So, little bits of information are there, which companies need to integrate together. That's where invertising comes in.

Four new media which are coming up at the same time – OOH, FM, Internet and mobile. The mobile, because of its interactive nature, has the greatest potential.

There are five types of campaigns: The first is top of mind recall, which is the reinforcement of an existing campaign.

The second type of advertising is interactive: to drive a response.

The third type of campaign is voting,

The fourth type is where something can be downloaded. So, the ad can have a link which leads to a page or an application.

The fifth is where there can be serial or storyboard ads. We can have a sequential campaign, where there is a set of messages.

For urban India, it's mostly lifestyle and convenience services. For rural India, we have to look at services which bridge the information gap, which are more utility oriented and help in increasing income, and which are livelihood enhancing. For this, we could look at voice services, for one.

The few areas which have great potential going ahead are re-thinking education in India, not just by building another good school, but by using the digital infrastructure and giving mass education to 200 million people in India. That's the greatest contribution technology can make.

© 2008 agencyfaqs!