The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Its various segments—film, television, advertising, print and digital among others—have witnessed tremendous growth in the last few years.

According to a 2009 report jointly published by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow at a compound annual growth rate (CAGR) of 12.5 per cent per annum over the period between 2009-13 and touch US$ 20.09 billion by 2013.

With a majority of the population below the age of 35, and increasing disposable income in Indian households, the average spend on media and entertainment is likely to grow in India, according to the 2009 edition of PricewaterhouseCoopers’ Indian Entertainment and Media (E&M) Outlook, covering the forecast period of 2009–2013.

Television

According to the study by FICCI and KPMG, the television industry, which is currently valued at about US$ 4.63 billion, will expand by 14.5 per cent between 2009 and 2013. According to the above PwC report, the television advertising industry is expected to account for a share of 41.0 per cent of the advertising industry in 2013, up from the present share of 39.0 per cent.

Digital distribution platforms such as direct-to-home (DTH) and Mobile TV are transforming the industry. Mobile TV—where content will stream in on mobile phones—is poised to grow big with the advent of 3G, according to experts. With the DTH industry estimated to grow by almost 100 per cent in the 2009-10 fiscal—from US$ 310.16 million in 2008-09 to an expected US$ 620.25 million in 2009-10—leading DTH firms such as Sun Direct, Bharti Airtel DTH and Big TV have increased their marketing budget by 20-25 per cent in the fiscal year 2010.

The television distribution industry is expected to reach US$ 5.2 billion in 2013 from the estimated size of US$ 3.12 billion in 2008, which translates into a growth of 12.2 per cent on a cumulative basis over the period, according to the 2009 edition of PricewaterhouseCoopers’ Indian Entertainment and Media (E&M) Outlook.

Capitalizing on the success of the 3D film Avatar, television manufacturers are gearing up to introduce new 3D TV sets into the market in the second quarter of 2010. Another player to get on the 3D bandwagon, the Indian Premier League, is set to become the first sports body to telecast a match live in 3D.

Music

Industry experts estimate that the current size of the music industry is about US$ 149 million. According to a PwC study, the industry is likely to grow to become a US$ 164.56 million industry by 2012.

With music channels giving less space to music programming to accommodate game shows and reality shows, independent music bands such Workshop Them Clones are increasingly looking to promote their videos by making them available online.

Digital music sales are expected to account for 88 per cent of the total music industry revenue in India by 2009. Though for a long time, cassettes and compact discs (CDs) have accounted for most music sales, future growth is expected to come from non-physical formats such as digital downloads and ringtones, among others

According to the 2009 PwC study, the important driver for the music industry over the coming years, will be digital music, and its share is expected to move from 16 per cent in 2008 to 60 per cent in 2013. Also, within digital music, mobile music is expected to continue to increase its share and maintain dominance.

Radio

The cheapest and oldest form of entertainment, reaching 99 per cent of the population, this segment is likely to see many dynamic changes.

According to the 2009 PwC study, the radio industry is forecast to grow at a compound annual growth rate (CAGR) of 18 per cent over 2009-13, reaching US$ 391.15 million in 2013 from the present US$ 170.87 million in 2008. That's more than double its present size. In terms of its share of the advertising pie, it is projected that the radio advertising industry will be able to increase its share from 3.8 per cent to 5.2 per cent between 2009 and 2013.