India’s 820 billion rupee ($15 billion) media and entertainment industry is projected to double to $30.4 billion by 2017, according to the annual trade report released by research company KPMG and the Federation of Indian Chambers of Commerce and Industry.
Overall growth from 2012 was 12.6%. Future growth will be driven by television as in past years, set to grow 18% to reach $15.5 billion in 2017, and by the new media and animation and vfx sectors.
The hitherto slow growing film sector, on the back of stronger content and digitization showed the biggest numbers in 2012, climbing 21%, compared with 2011’s 11.5% to reach above $2 billion. Some 77% of screens are now digital, with the report forecasting nearly a 100% to be digital by 2015.
Music grew 18.1% to reach $194 million. Advertising growth continued to decline, down to 9% growth, compared with 2011’s 13%.
India also ended a selection drought at Cannes with four films, “Gangs of Wasseypur” parts 1 and 2, “Peddlers” and “Miss Lovely,” chosen to screen in different sections of the festival.
Jehil Thakkar, head of media and entertainment, KPMG in India, said: “2012, though a challenging year for the media and entertainment industry, was a year in which important foundations for future growth were laid. The advertising environment went through one of the toughest years in the last decade. However, the implementation of digitization, the stellar performance of the film industry, backed by excellent content and digital distribution, the continued growth in regional print and the momentum in new media have all finally provided the needed platform to boost the industry.”