Even as the mature markets such as the US, the UK, France, Germany and Japan are struggling to see a high growth rate in the media and entertainment space, the BRIC countries are pacing ahead in its growth and is looking at clocking an cumulative growth of 11.7 per cent over 2011-15 as per Pricewaterhouse Coopers (PwC ) report on the global media and entertainment industry . As against this growth rate, the mature markets growth stands at an average CAGR of 5.7 per cent.
Even among the BRIC countries India is one of the most high growth markets and is estimated to grow at 13.2 per cent cumulatively over 2011-2015 to reach Rs 1,19,900 crore as per the latest PwC's Indian media and entertainment report.
Marcel Fenez, Gobal leader, Entertainment and Media Practice, PwC explains: "The BRIC countries are doing well on account of a robust advertising market. As against this the mature markets are suffering from weaker consumer sentiments and uncertain advertising environment."
According to the report India's entertainment and media sector will maintain its double-digit growth trajectory in 2011. The Indian M&E industry recorded one of the highest growth rates in the world in 2010-11.2%-largely on the back of improved economic conditions, a rebound in advertising and consumer expenditure and, most importantly, in entertainment and media spending. However, even at 11.2 per cent, the overall industry grew a little slower than expected due to the downturn in the films sector, while all other segments expanded as predicted.
Another interesting aspect that Fenez indicated was on the new emerging countries which he calls the Golden 8 countries - Turkey, South Africa, MENA, Pakistan, Indonesia, Vietnam, Columbia and Mexico where media and entertainment segments are growing at a cumulative growth rate of 12.7 per cent on account of strong advertising environment and also that the consumers in these countries are rapidly migrating to digital. These countries are growing at a higher rate than even the BRIC countries.
The growth looks positive but the PwC experts say that while there are revenues being earned by the companies in India they are still far away from profitability growth except barring a few companies like Zee Entertainment Enterprises. It would therefore become imperative for companies to not only look for revenues but to look for growth with profitability.