MUMBAI: The Indian entertainment and media (E&M) sector is poised to witness the fastest growth in the Asia Pacific region during the next five years, with a projected 18.5& compound annual increase. The growth will be fueled by rapid economic growth and the opening up of E&M markets.

According to a study titled ‘Global Entertainment and Media Outlook 2008-2012’ released by PricewaterhouseCoopers, the E&M growth in the BRIC nations - Brazil, Russia, India & China - will outpace GDP growth with a collective compound annual growth rate (CAGR) of 13.6 per cent versus 5.9 per cent for the rest of the world.

India will also be the focus of intense collaboration and investment by many of the world’s leading E&M companies. The Indian E&M sector will witness double-digit annual growth in every segment except recorded music, professional books, and consumer and educational book publishing.

The PwC report pegs global CAGR at 6.6 per cent for the sector, anticipating it reaching $2.2 trillion in 2012.

As per the report, E&M companies hoping to drive growth over the next five years will need to accommodate dramatic changes in devices, market and consumer behaviour through striking strategic business alliances. The study also underscores the importance of continuing to extract revenues from traditional business segments while emerging technologies continue to solidify their consumer position.

“We’re seeing a new business model solidify for entertainment and media companies. Some, such as the film industry, have dabbled in this in the past, but those will be small movements compared to what lies ahead. No single company will be able to successfully go it alone over the next five years. The challenges are too significant and the demand for innovation too complete,” said PricewaterhouseCoopers managing partner, global entertainment and media practice Marcel Fenez.

For online access & advertising to grow in India, the following are imperative:
• Broadband availability is limited; 1.3% penetration.
• Government funding & private initiatives needed to enhance broadband infrastructure and promotion.
• Investments in landline infrastructure and reach will lead...

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