Film industry to grow to Rs 400 billion by 2010

MUMBAI: The size of the domestic film industry is likely to double to Rs 400 billion (Rs 40,000 crores) in the next three years to annually produce 1200 movies in 50 or more languages and local dialects.


This in turn is slated to create employment opportunities for about six million people by 2010 according to ASSOCHAM. At present the domestic film industry provides direct and indirect employment to nearly 2.5 million people.


At present the size of Indian film industry is estimated to be around Rs 230 billion (Rs 23,000 crores). Approximately 800 films in different languages are produced annually earning $ 100 million of foreign exchange.


Additionally, the Indian music industry is likely to grow at four per cent cumulative annual growth rate to Rs 8.70 billion (Rs 870 crores) from the current Rs 7.20 billion (Rs 720 crores) in the next three years. As per ASSOCHAM, the digital music industry is expected to grow 25 per cent and likely to monetise to Rs 1.80 billion (Rs 180 crores) by 2012.


“The primary reason behind the expected growth of film industry in the next three years is because India has more than 20 official languages, innumerable dialects, hundreds of costumes and thousands of beliefs,” ASSOCHAM president Venugopal Dhoot said while presenting the blue print on Development of Indian Film and Entertainment Industry to President Pratibha Devisingh Patil.


“These add color and variety to the Indian entertainment industry, in which an upsurge of more than 200 broadcast channels is being witnessed, with television viewership going around 120 million with 70 million cable and satellite homes. This will further escalate at higher speed and ensure better growth,” Dhoot added.


ASSOCHAM also said that the television industry revenues are expected to grow from the present size of Rs 191 billion (Rs 19,100 crores) to Rs 519 billion (Rs 51,900 crores) by 2010, employing over 22 per cent cumulative annual growth in next few years.


Additionally, the increase in the number of regional channels has been touted as the major growth driver behind this likely growth subsequent to the advent of satellite television in early 90’s.


Regional channels are currently the key focus areas as these offer a wider range of viewers across the country, which are prompting film producers to tap local contents for entertainment.


According to Dhoot emerging trends suggest that some of the fast growing segments in the domestic industry include the music, cable and the satellite advertising, animation and FM. Revenues from the animation segment are also forecasted to increase from Rs 2,200 million to nearly Rs 4,400 million by the end of current year.


The export segment is also expected to increase from around Rs 4000 million to around Rs 10,000 million during the same period.