Mumbai, Mar 15 (IANS): The media and entertainment industry in India is set to witness a recovery this year after hitting a rough patch in 2009 due to a slowdown that resulted in a rather modest growth of a mere 1.3 percent in revenues, says a new survey.
Relaesed ahead ot the Frames 2010 media and entertainment summit here Tuesday, the study by the organiser Federation of Indian Chambers of Commerce and Industry (FICCI) says the growth this year will be driven by both support revenues and enhanced penetration.
"Rising disposable income of the working population and increased spend on discretionary items, not only in Tier-I but also Tier-II and Tier-III cities is expected to continue impacting the industry favorably," says the study, supported by consultancy KPMG.
"Growth of newer delivery platforms with superior technology and functionality is likely to expand horizons. Aspirations of Indian players to go global and foreign players enter India will also help the industry target a doubledigit growth in next five years."
The report says the role of new media is becoming increasingly important doe advertisers and focus on talent development, consumer research and innovation will help the players in differentiating themselves amidst growing competition.
In 2009, the industry, which dependent on advertising for almost 40 percent of its revenues, was hit due to shrinking ad budgets of the corporate world, and grew at a modest rate of 1.3 percent, against 12 percent the previous year.
The study has also identified 10 key drivers to growth:
- Digitization to help in spreading the reach and impact
- Regionalisation to aid in inclusion of untapped markets
- Convergence and Impact of new media to benefit media players
- Consolidation is leading to emergence of players with superior capabilities
- Competition is expanding the operating market
- Talent development and management are becoming key to business success
- Innovation is sweeping across products, process, marketing and business model
- Growing importance of pay markets in media business models
- Consumer research will ensure consumer oriented media products and delivery
- Players are using multiple modes of connecting with consumers
The full report is scheduled to be released by Maharashtra Chief Minister Ashok Chavan and federal Information and Broadcasting Minister Ambika Soni in the high presence of actors like Shah Rukh Khan and Katrina Kaif and film makers Yash Chopra and Karan Johar.