MUMBAI: Over the next five years, the Indian film industry is projected to grow at the CAGR of nine percent and reach the size of Rs 137 billion by 2014 according to the FICCI-KPMG 2010 report.

The filmed entertainment sector is estimated to have grown at a CAGR of 5 percent over the past three years. The industry has clocked revenues of around Rs 89 billion in size in 2009, a de-growth of 14 percent over 2008.

Growth drivers for the filmed entertainment sector would include expansion of multiplex screens resulting in better realizations, increase in number of digital screens facilitating wider releases, higher C&S revenues, improving collections from the overseas markets and ancillary revenue streams like DTH, digital downloads etc, which are expected to emerge in future.

In 2009, the film industry suffered a setback due to the multiplex – producer stalemate, plans of expansion by multiplex players being shelved, impact of IPL coupled with poor content and dismal performance of movies at the box office. The last quarter saw some light with success of a few films boosting the flagging morale of producers. Over the last few years, the relative importance of multiplexes for Hindi and English movies has become important and the overall distribution model is changing.