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News |  30 Jul 2009 10:49 |  By RnMTeam

Digital music to hog 60 pc of Indian market by '13 - PwC

MUMBAI: The Indian radio industry is projected to grow at a CAGR of 18 per cent over 2009-13, reaching Rs 19 billion in 2013 from Rs 8.3 billion in 2008, says the latest PricewaterhouseCoopers report on Indian entertainment and media outlook 2009.

In terms of share of ad pie, it is projected that the radio advertising industry will be able to increase its share from 3.8 per cent to a realistic 5.2 per cent in the next five years, the report says.

As for the music industry, the key growth driver over the next five years will be digital music, and its share is expected to move from 16 per cent in 2008 to 60 per cent in 2013. Within digital music, mobile music will continue to increase its share and maintain its dominance, the report says.

While on-line is currently the smallest component of total advertising spend, it will experience the highest growth over the next five years, growing at a compound rate of 32 per cent   The next highest growth over the period 2009-13 is expected by the radio industry at 18 per cent- estimated to reach Rs.19 billion in 2013, from Rs 8.3 billion in 2008.

The report on India's E&M industry, released on Wednesday, says that while annual average growth in nominal GDP was 14.48 per cent over the period 2004-08, overall E&M growth in 2008 slowed, reflecting weaker overall economic conditions  This is expected to continue in 2009.

Timmy Kandhari, leader India Entertainment and Media practice, PricewaterhouseCoopers said, "The slowdown in growth requires the E&M industry to revisit their short term business plans and strategies. However, double digit growth is expected to return over the forecast period with India recording one of the highest growth in the E&M industry as well as in advertising spending in the world, along with China."

After registering a growth of around 16.6 per cent compounded annually over the period 2004-08, growth in the E&M industry is set to decelerate to eight per cent in 2009. This has largely been influenced by a marked slowdown in advertising spending, which is expected to touch 9.2 per cent in 2009 after having posting a CAGR of close to 17.3 per cent during 2004-08.

Growth rates will increase in 2010 to 10.4 per cent as economic conditions are expected to gradually improve  For the remaining years of the forecast period, the industry will continue to grow at increasing rates, resulting in the overall compound annual growth rate for the period 2009-13 of 10.5 per cent.

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