M&E turnover to exceed Rs 1 trillion by 2012: ASSOCHAM

MUMBAI: The Indian media and entertainment industry’s turnover is expected to exceed Rs 1 trillion (Rs 1 lakh crores) by 2011 – 12 according to a recent report – India’s Digital Revolution Impact on Film & Television Sector – by ASSOCHAM. The report says that this will be possible with increasing consumerism and technological improvement.

However, as per the report, the television industry revenues comprising subscription and advertising is projected to grow over Rs 520 billion in next three years from Rs 200 billion at present. Subscription revenue is projected to be the growth driver for the TV industry with pay TV homes slated to increase from over 72 million to over 100 million by 2011-12.

Moreover, the next three years will also witness a increasing conversion of various media, films, music and home media, satellite TV, radio, entertainment, animation and gaming. The confluence of factor is also procuring conversion into the mainstream from digitization of content to pervasive broadband access and lower cost. "Higher performance technology, which is unleashing a wave of creative potential across the world and media content, needs big change," said Assocham secretary general D S Rawat.

According to the report, Direct-to-home (DTH) service is likely to emerge as the frontrunner amongst various pay TV technologies and will lead the digitization of television in India.

The report also says that television holds the larger part of viewership base and digital cinema is transforming the exhibition landscape. At present, there are over 400 channels in all and the number is expected to exceed 500 by the end of 2009.

While currently the government collects over Rs 15 billion as entertainment tax from consumers, the amount is slated to go up substantially with the rise in the number of channels.

The report also says that regional cinema is contributing significantly to the M&E industry. Annually approximately 1000 films are being produced in India out of which 60-65 are from the Tamil film industry. Of 15,000 theaters in India, 6000 in South India.

According to the ASSOCHAM report, animation and video games are emerging segments.