The Indian film biz is set to grow by 12.4% a year to reach rupees 170.5 billion ($3.7 billion) by 2014 from $2 billion in 2009, according to a report released by PricewaterhouseCoopers.
The report, Indian Entertainment and Media Outlook 2010, forecasts that the overall media and entertainment industry would increase at a similar rate to touch $22.3 billion.
The film industry grew just 2.2% in 2009. The report attributes this to the lower advertising spend due to the recession and the losses caused by a exhibitor-producer standoff that blocked new releases for nearly three months.
Television is projected to grow at 12.9% from $5.7 billion in 2009 to $10.5 billion in 2014.
The music industry is expected to hike 28.6%, reaching $567 million. This would be driven by digital music — its market share is due to rocket from the current 29% to 75% by 2014.
The animation, gaming and VFX industry will grow at 25.2% to reach $1.5 billion.
Timmy S. Kandhari, PwC India’s leader of entertainment and media practice, said, “Many of the factors that caused the slowdown in 2009 are not likely to persist. With confidence returning alongside a likely increase in consumer and advertisement spends, the entertainment and media industry is looking to get back to its high growth trajectory.”
A similar report by KPMG in March said the overall media and entertainment industry would reach $23.9 billion by 2014, but the film industry’s share would be $3 billion, as opposed to PwC’s $3.7 billion.