Digital drives rapid growth despite recession
MUMBAI — India’s 728 billion rupee ($14.5 billion) media and entertainment industry is projected to double to $29 billion by 2016, according to a report to be released this week by KPMG and the Federation of Indian Chambers of Commerce and Industry.
Although growth was 12% last year, it was lower than the forecast 14%, due to the global economic downturn.
Future growth will be driven by increased media consumption in India’s smaller cities and towns, rising digital content consumption and rapid consumer adaptation of devices like smart phones, computers, tablets and gaming consoles.
The film industry grew 11.5% in 2011 to $1.9 billion, and is projected to grow 10.1% annually to reach $3 billion by 2016.
Television continues to be a dominant player in India, growing from its current $6.6 billion to touch $14.7 billion by 2016.
The animation, VFX, print, radio, digital advertising and gaming sectors will all experience rapid growth, according to the report.
Jehil Thakkar, head of media and entertainment, KPMG, said: “Cable digitization, the promise of wireless broadband, increasing DTH penetration, digitization of film distribution and growing Internet use are all prompting strategic shifts in the way companies work.”