Fuelled by the rising income and consumption levels triggered by the country’s rapid economic growth, the Indian media and entertainment (M&E) industry is poised to grow at an 18 per cent compounded annual growth rate (CAGR) during the next five years, according to a joint study by Ficci and PricewaterhouseCoopers. The study projects that the entertainment and media industry would grow from the current Rs 43,700 crore to Rs 1,00,000 crore by 2011-12.

Giving a sector-wise break-up, the paper says that the Internet advertising industry will post the highest CAGR of 43 per cent in the next five year while the the Radio and Television sectors will grow at 28 and 22 per cent CAGR respectively. It estimates that Filmed and Live Entertainment will record 16 per cent CAGR each.

Describing fiscal 2005-06 as the year the media industry started to converge, the study says that such convergence is leading to numerous collaborations between value chain partners to drive new products and services to consumers. The diversification of media companies within segments, eg television news channels diversifying to entertainment, would act as strong growth drivers, it adds.

The study notes that Indian advertising expenditure has grown by over 23 per cent in 2006 over the previous year’s expenditure of Rs 16,300 crore. The M&E industry also witnessed the country’s highest foreign direct investment (FDI) flow in 2006, it said.

The Ministry of Information and Broadcasting has given the nod for as many as 13 FDI proposals and 22 more are under consideration. The news and current affairs segment accounts for the lion’s share of eight of these proposals.