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The year 2009, has brought tough yet interesting times for the Media and Entertainment (M&E) industry as a whole. The Indian M&E industry—one of the fastest growing industries in the country over the past couple of years.

Over the past three four years, the industry has witnessed tremendous changes. These changes have positively affected the players in the value chain-producers, Distributors and exhibitors. Availability of organized funding, advent of multiplexes And increasing overseas collections have led to improved realizations for the industry. Over the past couple of years the business of film making had changed due to corporatization, increasing production costs, spiraling actor fees and high acquisition costs for content.

Film Entertainment
The Indian film entertainment industry is projected to grow from the present size of Rs 8,400 crore to Rs 17,500 crore by 2011, implying a 16% cumulative annual growth over the next five years, according to FICCI pricewaterhouseCoopers’ annual report. Indians love to watch movies. Advancements in technology are helping the Indian film industry in all the spheres-film production, film exhibition and marketing. The industry is getting increasingly corporatized.

 
 Present and projected growth in E&M industry (in Rs crore)
  2006 2007 2008 2009 2010 2011 CAGR
Television 19,100 21,900 26,600 33,100 43,100 51,900 22%
Print Media 12,700 14,400 16,200 18,200 20,600 23,200 13%
Film Entertainment 8,400 9,600 11,200 12,600 14,600 17,500 16%
Radio 500 600 800 1,100 1,400 1,700 28%
Music 700 740 750 760 800 870 4%
OHH Advertising 1,000 1,200 1,400 1,600 1,900 2,100 17%
Live Entertainment 900 1,100 1,300 1,600 1,800 1,900 16%
Internet 160 270 420 600 820 950 43.00%
Total* 43,600 50,00 58,800 69,700 8,500 100,100 18%
 
Sources: Industry estimates & PwC analysis
*Note: The figures taken above include only legitimate revenues in each segment. Revenues from the Animation and Gaming segments have not been included in the industry size as these are traditionally included in the Indian IT and Software Revenues.
 

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