NEW DELHI — India’s burgeoning entertainment industry is set to grow by 18% each year to more than $13 billion in revenue by 2010, Swiss-based global researcher KPMG said Tuesday.
In a report released in Mumbai, KPMG said TV would be the main growth driver, accounting for 62% of revenues.
“The entertainment sector will thrive on the current economic upswing as more and more audiences are tapped across the country,” KPMG industry director Rajesh Jain said in presenting the report.
The industry grew about 12% annually between 2001 and 2004.
Jain said the industry would earn revenues of $13.4 billion by 2010, up from $5 billion in 2004.
Film will contribute 27% of revenues, with “other segments such as music, radio, live entertainment making up the balance,” Jain said.
According to the KPMG report, TV revs will be around $8.5 billion in five years from the current $3 billion. Cable and satellite reaches 48 million homes.
The launch of newer distribution methods such as direct-to-home and Internet protocol-based TV would expand audiences further and “encourage growth in subscription revenues from $3.40 per month to $5.70 per month on an average per household,” Jain said.
Film industry revs are expected to hit $3.2 billion in 2010, and film contributes only 27% to entertainment revenues, it forms the heart of the industry.
Revs from music sales shrank to $229 million in 2004 from $300 million three years ago, mainly due to piracy.
“With the right technology and regulatory push to curb piracy, music has the potential to achieve double digits growth again,” the report said.