To attract investments, the entertainment industry requires a high level of transparency and accountability in terms of discipline and process orientation.
The continuing economic boom is propelling the growth of the Indian entertainment industry. Increasing disposable income (20-30%), changing lifestyle, enabling regulatory environment, exposure to global me-dia, penetration of digital connectivity, ease of personal loans and a growing credit card culture have increased purchasing power, leading to a greater willingness to spend on entertainment products such as films, home theater, gaming and mobile value-added services, etc. Besides, the pervasive presence of IT and ITES companies in metros and II-tier cities is also contributing to the increased spending pattern. All these factors are contrib-uting significantly to the growth of the industry.
India’s economy grew by 8.2% in 2004 and is expected to grow with the same pace, which makes it one of the major global markets for global giants. Its growth is directly contributing to the growth of the entertainment sector. According to the CII-KPMG report, “Indian Entertainment Industry Focus 2010: Dreams to Reality”, the Indian entertainment industry is currently estimated at Rs. 22,200 cr and is ex-pected to grow at 18% per annum to reach Rs. 58,800 cr by 2010. TV and film contribute 62% and 27% of the industry growth, while the other seg-ments including music, radio, live en-tertainment, animation and interactive gaming contribute the remaining 11% to the industry. This growth is the result of the broadband revolution, outsourced content, migration of population across the globe and innovation across the value chain. Other factors include the government’s propensity to improve conditions with a favorable regulatory environment and funding arrangement from financial institutions. With these developments, the growth potential of the industry is yet to be seen. |
