Indian Entertainment Industry
India Entertainment and Media Outlook 2011
2
PwC
Message
Welcome to PwC’s India Entertainment and Media Outlook 2011, analysing nine entertainment and media (E&M) industry segments. We have detailed key trends and challenges in each of the segments besides providing their future prospects. In addition, we have provided our views on tax and regulatory issues as well as the technology that is influencing the distribution of content in the industry. The year 2010 saw the global economy begin to recover from a steep decline which in turn saw a rebound in consumer spend, advertising spend and most importantly E&M spend worldwide. Advertisement in particular staged a remarkable comeback in nearly all markets. The world in general continued its shift towards ‘digital’ though the magnitude of change was different in many markets. India recorded one of the highest growth rates in the world at 11.2% in 2010. Yet, this was lower than projected, largely due to the negative growth in the film segment, with all the other segments growing as projected. E&M revenues in India continue to be largely non-digital with TV, print and film constituting almost 90% of the sector. While consumer preference continues to change, the shift to digital is hindered by poor infrastructure as well as affordability of broadband and mobile. Our forecast period does not show a dramatic change. However, just because the change is not aggressive does not mean digital revenues will remain irrelevant. We continue to believe that this situation is temporary and once infrastructure is in place, change will be rapid. The industry needs to use this time to prepare for the digital world. In this edition, we also present our views on the elements of the digital enterprise of the future. At PwC, we continue to monitor trends and developments that may impact your business now as well as in future. We appreciate your feedback and request you to continue to tell us what can make the India E&M Outlook
2
PwC
Message
Welcome to PwC’s India Entertainment and Media Outlook 2011, analysing nine entertainment and media (E&M) industry segments. We have detailed key trends and challenges in each of the segments besides providing their future prospects. In addition, we have provided our views on tax and regulatory issues as well as the technology that is influencing the distribution of content in the industry. The year 2010 saw the global economy begin to recover from a steep decline which in turn saw a rebound in consumer spend, advertising spend and most importantly E&M spend worldwide. Advertisement in particular staged a remarkable comeback in nearly all markets. The world in general continued its shift towards ‘digital’ though the magnitude of change was different in many markets. India recorded one of the highest growth rates in the world at 11.2% in 2010. Yet, this was lower than projected, largely due to the negative growth in the film segment, with all the other segments growing as projected. E&M revenues in India continue to be largely non-digital with TV, print and film constituting almost 90% of the sector. While consumer preference continues to change, the shift to digital is hindered by poor infrastructure as well as affordability of broadband and mobile. Our forecast period does not show a dramatic change. However, just because the change is not aggressive does not mean digital revenues will remain irrelevant. We continue to believe that this situation is temporary and once infrastructure is in place, change will be rapid. The industry needs to use this time to prepare for the digital world. In this edition, we also present our views on the elements of the digital enterprise of the future. At PwC, we continue to monitor trends and developments that may impact your business now as well as in future. We appreciate your feedback and request you to continue to tell us what can make the India E&M Outlook