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Drdutta's review
Investment Sector: Emerging Markets Submitted by Drdutta 
5 months ago Add Tag |
The Indian television industry, which has about 300 channels in operation today, is on the threshold of a massive expansion. It grew 18% in 2007 to Rs 22,600 crore, according to a PricewaterhouseCoopers (PwC) report on the Indian entertainment and media industry. And with 200 new channels slated for launch this year, the size will reach gigantic proportions. There will, however, be a shakeout that will see some channels close, while others are taken over. One way or the other, the sector has interesting times ahead.
The PwC report says that television will continue to be the major contributor to the entertainment and media industry’s revenue pie over the next five years. It projects healthy 22% year-on-year growth for the period, which translates into an industry worth Rs 60,000 crore by 2012. Similarly, the TV advertising industry is expected to grow to Rs 20,000 crore in 2012, from its current size of Rs 8,000 crore, while the television distribution industry is expected to reach Rs 38,000 crore in 2012. With as many as 200 new channels expected to beam out this year, and the number of pay television households projected to grow from 74 million in 2007 to 115 million in 2012, the mood in the TV industry is bullish. With the cost of running a channel escalating year after year, a number of investors are finding it an extremely risky proposition to invest in the broadcasting business. In order to grow beyond this market reality and survive, broadcasters need to be innovative and think out of the box, not only in terms of coming up with great differentiated content, but also looking in terms of creating newer avenues of revenue generation.
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