MUMBAI: According to the latest report unveiled by PricewaterhouseCoopers (PWC)  the radio industry is projected to grow at a CAGR of 19.2 per cent over 2011-15, reaching Rs 26 billion in 2015 from Rs 10.8 billion now.

While due to the tremendous uptake of the mobile VAS market, the Music sector is projected to grow at a CAGR of 17.6 per cent over 2011-15, reaching Rs 21.4 billion in 2015 from Rs 9.5 billion in 2010.

The Indian entertainment and media sector has performed below PricewaterhouseCoopers' (PwC) expectations in 2010 due to a downturn in the filmed entertainment segment, but the consulting firm predicts a faster growth swing that will take the industry from Rs 646 billion to Rs 1199 billion by 2015.

A 13.2 per cent CAGR for the next five years will be fuelled by a sustained growth in advertising and consumer spends, according to PwC.

PwC had forecast a 12.4 per cent growth in 2010 but the sector slowed to end the year with a growth rate of 11.2 per cent, according to the consulting firm's own admissions. There was a rebound in consumer and advertising spends, triggering all the segments of the E&M sector to "grow as predicted". But the growth was " a little slower than expected largely due to the downturn in the film segment".

"The industry is expected to continue its double-digit growth trajectory in 2011, and with sustained growth in advertising as well as consumer spend, it is likely to achieve double-digit growth in the forecast period of 2011-2015, with TV, print and movies continuing to dominate for the foreseeable future," the report said.

A major push will come from the digital sector. PWC leader - Entertainment & Media Practice Timmy S Kandhari said, "The buoyant advertisement spend will have to be supplemented with subscription growth for sustainable profitable growth in E&M revenues. Addressable digitisation in the broadcast space and focus on good content across sectors will go a long way in achieving this objective."

Television: The report predicts that the TV sector will command half of the entertainment pie by 2015 from current level of 47 per cent. The sector is estimated to grow at a 14.5 per cent CAGR over the next five years, from an estimated Rs 306.5 billion in 2010 to Rs 602.5 billion by 2015.

Film: The sector is projected to grow at a CAGR of 9.3 per cent over the next five years, reaching Rs 136.5 billion in 2015 from the present level of Rs 87.5 billion.

Print media: The sector is projected to grow by 9.6 per cent over the next five years, reaching Rs 282 billion in 2015 from the present Rs 178.7 billion.

Internet advertising: With rebound in overall advertising, Internet advertising too is projected to grow by 25.5 per cent over the next five years and reach an estimated Rs 24 billion in 2015 from the present Rs 7.7 billion in 2010.

Out of home (OOH): The estimated size of OOH advertising spend is Rs 14.0 billion in 2010, which is projected to reach Rs 24.0 billion in 2015.

Animation, gaming and VFX industry will continue to maintain its growth pace and is projected to grow at a CAGR of 21.4 per cent to Rs 82.6 billion in 2015 from its current size of Rs 31.3 billion.

The E&M sector will have to address the issue of profitability even as its size expands.

"While there is good revenue growth, the challenge for the Indian industry would be how to make the growth profitable in all its constituents. Favourable government policies will help but the industry does need to look at their own operating model such that sustained investment in the E&M sector becomes possible," cautioned Kandhari.