Amidst the strong economic growth and rising income levels, the Indian entertainment industry is one of the fastest growing sectors. Indian films and music have become global phenomena. The country produces 1,000 movies a year; about 10 times the films generated in Hollywood. Today, the industry is witnessing a paradigm shift in distribution, going by new distribution channels such as broadband, Internet access and wireless communications. All the factors are driving towards significant growth and the industry is gearing up to outperform GDP growth by a noteworthy margin in the coming years. On the other hand, technological advancement is driving its boundaries and merging with those of telecommunications and IT segments, pushing a host of value-added features for consumers and new revenue streams for companies. Mobile entertainment has become the biggest growth driver in the recent past because of its ability to overcome the unlimited boundaries of time and space.
Coming to the entertainment distribution, technological advancement has been playing a crucial role. It has moved on from Gramophones to LP recorders to audio cassettes to VCDs to MP3s to DVDs. The industry has over 26 million DVD and VCD households, and is growing at a rate of 25% per annum. However, the Indian home video market accounts for a mere 7% of the total film revenue, which is Rs. 7,900 cr, creating a vacuum in this segment. Moser Baer India (MBI) is stroking and feeling the entertainment market, as T-series is banging it in the audio cassette segment. |
