LONDON — The Indian media and entertainment industry grew 12% in 2013, according to a report due to be released by consulting firm KPMG and the Federation of Indian Chambers of Commerce and Industry.
This is despite the country’s overall economic growth slowing to 4.7%, compared to a robust 8% growth in 2012.
The report notes that the film industry showed double-digit growth, driven by a boom in multiplex box office collections, but this was slower than 2012. Some 90% of India’s 12,000 screens are now digital. India’s focus is now on adding screens in tier 2 and 3 cities.
In the television sector, the transition to digital is almost complete, but the corresponding increase in average revenue per user and subscription revenues will only take place over the next two to three years. Advertising on television is now restricted to 12 minutes an hour by government stricture.
The internet user base in India has grown to 214 million, with mobile internet users accounting for 61% of these.
Thanks to the slackening of physical sales, the music industry declined by 10%, though consumption of digital music by mobile users is likely to spur growth.