The prospects for the media and entertainment industry look bright over the next four years, according to media pundits and independent research agencies.

The sector is expected to cross the Rs 1,00,000 crore (Rs 1000 billion) mark, compared with the current size of Rs 43,700 crore (Rs 437 billion), registering an 18 per cent compounded annual growth, says the latest Ficci-PwC report.

The pay television market in India would generate a turnover of about Rs 42,000 crore (Rs 420 billion) by 2011, up from about Rs 16,500 crore (Rs 165 billion) last year, according to Hong Kong based Media Partners Asia.

The pay-TV will reach 84 per cent of the television homes by 2011, up from 61 per cent in 2006 and there will be 107 million cable households as compared with 71 million in 2006, the MPA report pointed out.

The media and entertainment sector has been witnessing all-round robust growth. The television sector has registered year-on-year growth of 18-20 per cent, while the advertising industry is poised to grow at an average of over 20 per cent for the next three-four years.

In the first three quarters of 2007, as many as 8-10 television channels are slated for launch. By the end of this year, about 200 private FM radio stations will be operational. At least two more private direct-to-home companies, Sun TV and Reliance will start their service competing with Tata Sky and Dish TV.

The listed media firms have posted positive results as well. Zee Entertainment Enterprises posted a 11 per cent growth in consolidated revenues for 2006-07 at Rs 384 crore (Rs 3.84 billion) for the quarter ended March 31, 2007, as against Rs 347.6 crore (Rs 3.48 billion) in the corresponding period last year.

Subhash Chandra, CMD, Zee Telefilms said the company's DTH business Dish TV had a registered subscriber base of 1.9 million in FY07 and was well-poised to cross the 3-million mark next year. "Dish TV is one of the fastest growing DTH services in the world and we are confident that it would build long-term shareholder value," he said.

News broadcaster NDTV is all set to launch its entertainment and music channels by the end of this year.

The film industry too is experiencing increasing corporatisation. Digital cinema exhibitors UFO Moviez received funding to the tune of Rs 96.8 crore (Rs 968 million) from 3i, a private equity player.

Last year, several companies entered into long term contracts with directors and actors to secure their content pipeline. Adlabs has signed contracts with actor Hrithik Roshan for Rs 35 crore (Rs 350 million) for three films and actor Akshay Kumar for Rs 18 crore (Rs 180 million) for three films.

It has also roped in film-director Vipul Shah for Rs 200 crore (Rs 2 billion) for 8 films and is reportedly signing a Rs 22 crore (Rs 220 million) three-film deal with actor John Abraham.

UTV reportedly has set aside Rs 100 crore (Rs 1 billion) for contracts with individual directors. According to industry sources, more than half of the releases in 2006 were by corporates rather than individuals.