MUMBAI: The Indian film industry is expected to grow at a CAGR of 12.4 per cent over the next five years, reaching Rs 170.5 billion in 2014 as compared to Rs 95 billion in 2009, as per PricewaterhouseCoopers’ latest report titled Indian Entertainment & Media Outlook 2010.

In 2009, the Indian Entertainment and Media (E&M) industry saw a growth of 2.2 per cent, which was the lowest growth ever, but in its latest report, PricewaterhouseCoopers predicts that the Indian entertainment and media industry is poised to return to double digit growths. The industry is expected to touch Rs 1040 billion growing cumulatively at a 12.4 per cent CAGR to 2014.

Some of the reasons for the low growth rate in 2009 were the lower than expected uptake in the advertisement spends. Because of no growth in ad spends, sectors like print, OOH, radio and internet advertising were badly affected. Another major factor was the de-growth of the film industry in 2009.

According to PricewaterhouseCoopers India leader – Entertainment & Media Practice Timmy S Kandhari, some of the reasons for the film industry not doing well were that not many people went out to the theaters to watch films, cost mis-match, the problem between the multiplexes and the distributors, not enough release windows and uninspiring scripts.

Kandhari also feels that a growth in multiplexes and the digitization of single screens would benefit the film industry to a large extent. He also stressed the need to promote regional content as he feels it is an exciting sector to look at.

However, according to the report, things are looking better now and besides the film industry, the other sectors like television, print media, radio advertising, music, internet advertising, OOH and animation, gaming and VFX industry is projected to grow.

While the industry is dominated by television and film entertainment, print is likely to grow the least at 7.4 per cent and the music industry is likely to grow the most at 29 per cent.

The music industry is projected to grow at a CAGR of 28.6 per cent over 2010-14, reaching Rs 26.5 billion in 2014. The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 29 per cent in 2009 to 75 per cent in 2014.

Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 25.2 per cent to Rs 73.4 billion in 2014 from its current size of Rs 23.8 billion.

The television industry is projected to continue to be the major contributor to the overall industry revenue pie and is estimated to grow at a stable rate of 12.9 per cent cumulatively over the next five years, from an estimated Rs 265.5 billion in 2009 to Rs 488.0 billion by 2014. On the other hand, the print industry is projected to grow by 7.4 per cent over the period 2010-14, reaching Rs 230.5 billion in 2014 from the present Rs 161.5 billion in 2009.

The radio industry is projected to grow at a CAGR of 12.2 per cent over 2010-14, reaching Rs 16 billion in 2014 from the present Rs 9 billion in 2009.

OOH is projected to reach Rs 21 billion in 2014. Its share in the total ad pie is expected to go down marginally to 5.6 per cent in 2014 from a current level of 5.8 per cent in 2009.

Kandhari says, “The road ahead looks encouraging. There is a big change now as far as ad spends are concerned, as compared to 2009. Ad spend has come back in good measure. Many of the factors which caused the slowdown in 2009 are not likely to persist. With confidence returning alongside a likely increase in consumer and advertisement spends, the E&M industry is looking to get back to its high growth trajectory.”