| MUMBAI:
The Indian media and entertainment (M&E) sector will double its turnover in
next three years from its current turnover of Rs 500 billion, according to a report
by Assocham (Associated Chambers of Commerce and Industry of India). Titled
‘India’s Digital Revolution – Impact on Film and Television Sector,’
the report predicts the growth of the sector would be driven by increasing consumerism
and technological improvement. The
report also forecasts that turnover of the television industry, which include
both subscription and advertising revenues, will grow to Rs 520 billion in the
next three years, up from its current estimated levels of Rs 200 billion. Subscription
revenue will be the key growth driver for the TV industry as pay-TV homes jump
from 72 million to over 100 million by 2011-12. At
present, advertisements generate about 80 per cent of the revenue while subscription
account for the rest. “The
next three years will witness a blitz of conversion of various media, films, music
and home video, satellite TV, radio, entertainment, animation and gaming etc.
A confluence of factor is also procuring conversion into the mainstream –
from digitisation of content to pervasive broadband access and lower cost,”
says Assocham secretary general DS Rawat. The
report notes that DTH is likely to emerge as the winner amongst various pay television
technologies and this would lead the digitisation of television in India with
superior technology and value added services, professional customer services,
all India coverage at low incremental, per subscriber cost and lower marginal
acquisition cost compared to digital cable TV. The
Assocham also predicts 14 per cent year-on-year advertisement growth in TV over
the next three years. As
per the report, animation and video games are also emerging segments. An increased
number of downloads of games on mobile phones is likely to open new opportunities
for gaming companies. | 
