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Entertainment industry 2001 revenues up 30%

Total revenue of the Indian entertainment industry increased more than 30 per cent in calendar 2001, more than seven times faster than the overall economy, according to data compiled by the accounting firm Arthur Andersen.

Revenues from the film, television, music, radio and live entertainment industry segments totalled Rs 130 billion ($2.7 billion), up from Rs 100 billion the previous year, the data released on Friday, the first day of a major two-day industry seminar, Frames 2002, showed.

Advertising spending via the entertainment industry, particularly television, increased by 10.2 per cent to Rs 78.5 billion.

Subscription revenue rose by 33 per cent -- to Rs 40 billion.

But ticket sales, sponsorship and product sales showed only "marginal growth", the report said without further elaboration.

Looking ahead the report forecast that total revenues of the Indian entertainment industry would more than double over the next five years -- to Rs 293 billion in 2006.

The report cited Zenith Optimedia Group estimates that advertising revenue would increase 9.5 per cent to Rs 85.93 billion this year, Rs 96.52 billion in 2003 and to Rs 103.83 billion in 2004.

It cited the major drivers of growth as a pickup in India's overall economic growth rate, increasing urbanisation, literacy and per capita income, and benefits stemming from the spread of digitalisation.

"Digitalisation will lead to a vast improvement in content quality and ease of handling content, which will see consumers buying more content.

"It will also open up new distribution channels for content delivery such as the Internet, and enable entertainment companies to access new consumer markets, tap new sources of revenue and also enable the industry to curb piracy."

Many industry leaders as well as a bevy of big-name entertainment industry executives from around the world are attending the two-day conference, organised by the Federation of Indian Chambers of Commerce and Industry, one of the nation's most powerful industry lobby groups.

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