MUMBAI: India?s Entertainment & Media sector is expected to exceed Rs 1.75 trillion growing at a CAGR of 17 per cent over the next five years as per CII-PwC?s latest report titled ?India Entertainment & Media Outlook 2012?, which has been released today at the "India-Big Picture" CII-Media and Entertainment Summit.

Advertising segment in India is dominated by the television and print sectors with combined contribution of over 80 per cent in the total revenue pie. Both these segments are expected to continue to be dominant in the next five years.

The potential game changers in this area are going to be the advertising spend, consumer spend, infrastructure and policy support, the report said.

The advertising spend contributes approximately 35 per cent of revenues in the E&M industry. However, compared to other countries, the advertising spends as a percentage of GDP is very low at 0.3 per cent.

"We expect that with entertainment content being accessed through different mediums and innovation in digital content will drive the advertising spend," the report added.

In 2011, the overall entertainment and media industry is estimated to be Rs 800 billion, an increase of 17.5 per cent over the previous year. The television and print segments continue to be the largest contributors to the industry, accounting for 66 per cent of the total revenue.

Internet access also contributed a significant 14 per cent (up from 11 per cent in 2010), driven by the increasing adoption of mobile internet in the country. However, the contribution from the print and film segments have reduced marginally, as year-on-year growth rates have been lower than the industry average.

Internet access and gaming segments have been the fastest growing, with annual growth rates of 57 per cent and 33 per cent respectively. The gaming segment, though a small contributor to the overall industry, has been growing due to the rising popularity of mobile and online and social media gaming. Television, being the largest segment, has been the highest contributor (in terms of revenue addition) to the industry, with an annual growth rate of 16 per cent.

The Indian E&M industry is among the top 15 markets in the world and the fastest growing one, followed by China, Russia and Brazil. This growth is largely coming from the burgeoning internet segment which has the potential to outshine the print sector by 2014.

The key consumer spend segments include television subscription, film admissions and print circulation. The average annual spend per capita is at a low of $7 as compared to $22 in China and $65 in Brazil. Rising disposable incomes in India in combined with macro-economic stability will drive rapid growth in consumer spend on E&M.

Achieving the vision of E&M industry worth $100 billion will require a consolidated and focussed approach towards developing and deploying relevant infrastructure, supported by a strong policy framework. High broadband penetration, improved audience measurement mechanisms and regulatory support will provide the necessary impetus to future growth.

"Working to attain the target of US$100bn in the coming years will not only benefit industry but also create large scale employment, and help achieve India?s goal of being a knowledge driven economy through effective media," said COO Director General Chandrajit Banerjee.

"Increased advertising and consumer spend will take the industry to desired heights. This will be fuelled by technological innovation leading to better quality of media content being consumed. Internet access will be a key enabler in driving growth," PwC India Leader ? Entertainment & Media Practice Smita Jha.

MUMBAI: The media and entertainment industry in southern India is expected to grow at a compounded annual growth rate of 14 per cent over the next four years to reach a size of Rs 360 billion by 2016 owing to an evolving ecosystem and demand, according to a report released by Deloitte Touche Tohmatsu India.

The size of the South Indian media & entertainment industry is currently pegged at Rs 211.9 billion.

Television constitutes the largest component of the South Indian media and entertainment industry. Its size currently is pegged at Rs 122.2 billion accounting for a 58 per cent share of the market.

As per Deloitte estimates, television is expected to reach a size of Rs 225.4 billion by 2016, growing at a CAGR of 17 per cent.

The nascent radio market is expected to grow the fastest at a CAGR of 22 per cent. Radio will continue to be at the bottom of the ladder with a market of Rs 8.05 billion by 2016. The radio market is currently pegged at Rs 3.65 billion, which is a 2 per cent share of the overall market.

Behind television, print media is poised to be the second largest contributor to the South Indian media and entertainment industry with a market of Rs 91 billion thereby growing at a CAGR of 10 per cent. The print market currently stands at Rs 62.65 billion and has the second largest share of 29 per cent.

Buoyed by an ardent film following, the film market in south India stands at Rs 23.4 billion and is expected to grow at a CAGR of 11 per cent to reach a size of Rs 35.5 billion. Films have an 11 per cent share of the South Indian media and entertainment market.

Within the South market, Tamil Nadu is the biggest market at Rs 76.2 billion followed by Andhra Pradesh at Rs 64.8 billion. Karnataka and Kerala are estimated to be in the region of Rs 39.85 billion and Rs 31.05 billion, respectively.

According to the Deloitte report, Andhra Pradesh?s media and entertainment market is projected to grow at a rate of 14 per cent to become a Rs 112 billion market. Tamil Nadu and Karnataka are projected to grow at a rate of 14 per cent to reach a market size of Rs 129.95 billion and Rs 67.15 billion respectively.