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Indian media industry to grow by 19 pc to $ 18.9 bn by 2010

 

10th March, 2006

 

New Delhi: The Indian entertainment and media Industry is witnessing a phenomenal growth and is slated to grow at 19 per cent to US$ 18.9 bn by 2010 from its current size of US$ 8bn, according to a study.

The phenomenal growth in the entertainment and media sector can be attributed to economic growth, rising income levels, consumerism combined with technological advancements and policy initiatives undertaken by the Indian government, the FICCI-PricewaterhouseCoopers study has forecast.

"Two factors that will contribute to the growth of the industry are low media penetration in lower socio-economic classes and low ad spends..... But efforts to increase it even slightly are likely to deliver much higher results," PricewaterhouseCoopers' Entertainment and Media practice Executive Director and leader Deepak Kapoor said in a statement.

With an estimated 28 million Indians already hooked on to the internet, advertisement in India is presently worth US$ 22.5 million With the broadband slowly becoming popular, the segment would show a compund annual growth rate (CAGR) of 50 per cent.

 

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