Riding high on growing income levels, comsumerism, technological improvements and greater investments, the media and entertainment sector is expected to cross a turnover of Rs 100,000 crore (Rs 1,000 billion) by 2011 from the present Rs 43,700 crore (Rs 437 billion) thereby registering 18 per cent compounded annual growth, says a Ficci-PwC report.

The report will be released on March 26 in Mumbai at the media and entertainment convention, Ficci-FRAMES.

The turnover of the television industry is projected to grow by 22 per cent to Rs 51,900 crore (Rs 519 billion) by 2011 from the current size of Rs 19,100 crore (Rs 191 billion). This will include both subscription and advertising revenues. "Subscription revenue is projected to be the key growth driver for the television industry as the pay TV homes will increase from 71 million to over 100 million in next four years," the report said.

The print media industry will register 13 per cent growth to reach Rs 23,200 crore (Rs 232 billion) from the current size of Rs 12,800 crore (Rs 128 billion) by 2011, the report said. "While currently the print media reaches 222 million people, it has the potential to reach another 369 million literate people. Also, print media is the favourite segment for global investors which will further help the segment grow," the report said.     

According to the report, 2006 saw the maximum flow of foreign investment in the entertainment and media industry. "As many as 13 proposals for foreign direct invetsment in media were cleared by the ministry of information and broadcasting in 2006 and the ministry is examining another 22 proposals for clearance," it said.

Though the internet media has a small base, it is expected to show the highest compounded annual growth rate of 43 per cent to reach Rs 950 crore (Rs 9.5 billion) in 2011 from Rs 160 crore (Rs 1.6 billion) now. The projections on Internet media by Ficci-PwC report is based on the growth of advertising revenue on the Internet media. More than 35 million internet users by 2008 will help advertisers spend more on Internet, the report said.

As per the report, advertising revenue in radio industry is expected to grow by 28 per cent annually to reach Rs 1,700 crore (Rs 17 billion) by 2011. Currently radio generates advertising revenue of Rs 500 crore (Rs 5 billion). The growth is fuelled by the expansion of private FM radio companies.

Piracy to the tune of Rs 2,500 crore (Rs 25 billion) annually is pulling back the growth of the music industry, the report said. Music industry will grow only by four per cent from Rs 720 crore (Rs 7.2 billion) currently to Rs 870 crore (Rs 8.7 billion) in next four years, it said.      

Live entertainment segment is estimated to grow by 16 per cent from Rs 900 crore (Rs 9 billion) to Rs 1,900 crore (Rs 19 billion) and out-of-home advertising by 17 per cent from Rs 1,000 crore (Rs 10 billion) to Rs 2,150 crore (Rs 21.5 billion) in the same period, the report said. According to the report, Indian advertising spends also showed exponential growth in 2006 growing over 23 per cent over last year at Rs 16,300 crore (Rs 163 billion).