India's Entertainment Industry Growth Pegged at 18 Percent

With a chapter on the innovation-imperatives in the rapidly-evolving entertainment and media sector, the report says that the Indian businesses, like their peers abroad, will need to raise their game in operational agility and customer insight.

"To achieve it successfully, every participant must invest in constant innovation that encompasses products and services, business and operating models and, most importantly, customer experience and engagement," the report says.

"Innovation should be seen as an important enabler to get closer to consumers and profitably deliver relevant content and services."

The report notes that factors such as rapid rise of internet usage, high penetration of smart phones, digital advertising, broadband, digital content consumption and regulatory interventions made a significant impact on the entertainment and media industry.

In revenue-share terms, the TV and print segments continued to dominate with about 40 percent and 22 percent share, respectively in 2012. Yet, internet access now commands around an 18-percent share and films around 12 percent.

In 2017, while television will continue to lead in terms of revenue contribution, with a 39-percent share, the share of print and films are likely to decrease to 15 percent and 9 percent, respectively.

But internet access will see its share rise from 18 percent to 28 percent.

"Today, if we take the entertainment and media growth without taking internet access and internet advertising into account, the size increased from about 690 billion in 2011 to almost 795 billion in 2012," says the report.

"It is expected to grow at about 15 percent annually over 2012-2017 and reach revenues of about 1,615 billion in 2017."

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