Indian Industry Overview

The media and entertainment is one of the fastest growing sectors in India. The increasing rate of urbanisation, the penetration of television and radio industry in the rural areas with the help of the technology and the rising levels of incomes of the people in India has facilitated the growth rate of media and entertainment industry in India. The Indian media and entertainment industry stands at the value of Rs 43,700-crore currently and is expected to grow at an annual growth rate of 19% to reach Rs 83,740 crore by 2010. The Indian economy is growing at a fast rate and the media and entertainment industry is expected to benefit significantly from it. The media and entertainment industry grows faster than the gross domestic product growth (GDP) due to the elasticity of income. When incomes rise, people tend to spend proportionately more resources on leisure and entertainment then the necessities. India is poised to enter this phase of rapid growth in the sector. The media and entertainment sector is highly fragmented in India

Emerging Trends

New distribution channels – The latest channel through which the consumers are obtaining entertainment is the mobile phones downloading movie clips, games, ringtones etc. Internet is also fast emerging as a widely used distribution channel.

The three main trends that have been observed during the last year are diversification by media companies & increased foreign investment.

Convergence

In the future, convergence is expected to have a significant impact on the growth of media and entertainment industry. Convergence can be defined as changing the way consumers consume content and the manner content is delivered to consumers.

"In television, we expect the balance of power to shift in favour of broadcasters with the adoption of alternative distribution platforms such as DTH (direct-to-home), CAS (conditional access system), and IPTV (Internet protocol television)," said Mr. Narasimhan, Head, Crisil Research.

The process of convergence is facilitated and accelerated by the rapid technological advances and the broadband throughout the world. Convergence is expected to change the traditional industry structures, the existing business models and distribution mechanisms.

Current Scenario

Media and entertainment industry is one of the most flourishing sectors in India. The Indian media and entertainment industry grew from Rs 35,300 crores to Rs 43,700 crores during the year 2005-06. The liberalization of the media sector has opened up the gates of opportunities and growth. India is witnessing a revolution in this sector with the emergence of new technologies. Many companies are taking initiatives to set up digital theatres, multi-plexes, etc.

India is emerging as a global destination for the media and entertainment players because of the following reasons:

• The number of channels is increasing each day.
• India is emerging as one of the world’s largest markets for digital and mobile music.
• Entry of private sector companies and increasing FDI and FII.
• The concept of crossover movies and crossover audience is also gaining momentum.
• The Indian media and entertainment industry is also making its presence felt in the global market with its movies and music.
• India’s large pool of creative skills and growing domestic market for animation and special effects industry.
  

Piracy and violation of intellectual property rights have posed a major threat to the media and entertainment companies worldwide. Lack of quality content has also become a major area of concern for the media and entertainment companies in India.

Given the high rate of economic growth and technological developments, Indian media and entertainment industry is poised to register a tremendous growth in the coming years.

Career Opportunities

Thanks to the boom in India’s media and entertainment industry, the nature of jobs in the sector has been transformed. The opportunities that were earlier regarded as mere hobbies have become full time career options. Right from radio jockeys, actors, musicians, dancers, journalists, video technology creators and managers to accounts planning, cameramen, editors, soundmen and public relations managers, this sector offers career opportunities for all.

Media and entertainment sector also offers various high profile careers that are in constant public glare and can help to earn unimaginable incomes. But career in this industry can also be short-lived, depending on the area of the work chosen from the industry.