I&B minister Priya Ranjan Das Munshi (right) with Kareena Kapoor and Yash Chopra in Mumbai on Monday. (PTI)

Mumbai, March 26: The entertainment and media (E&M) industry in India is slated to grow at an annual rate of 18 per cent over the next five years to Rs 100,000 crore, up from an estimated Rs 43,700 crore in 2006. This was revealed in a report prepared by PricewaterhouseCoopers (PwC) and Ficci at the annual Ficci Frames event today.

The third annual study, Ficci-PwC Indian Entertainment and Media Industry — A Growth Story Unfolds, stated that the strong growth of the Indian economy will be a key factor in the growth of the E&M sector.

While the industry, which is cyclical, grows faster when the economy is expanding, the pace is more than the nominal GDP growth during all phases of economic activity. This is due to income elasticity wherein incomes rise and more resources are spent on leisure and entertainment and less on necessities.

Moreover, consumer spend has also been growing due to rising disposable incomes.

PwC and Ficci examined around eight industry segments in the study. According to the report, the television segment will make the biggest contribution as in the last three years. The television industry’s revenues are expected to grow to Rs 51,900 crore by 2011 from Rs 19,100 crore, a 22 per cent cumulative annual growth.

Subscription revenue will be the key growth driver here and it is expected to come both from the number of pay TV homes and increased subscription rates.

The print media, which includes newspapers and magazines, is projected to grow to Rs 23,200 crore from Rs 12,800 crore, a growth of 13 per cent. PwC noted that with the rise in the literate population, more people in rural and urban areas are reading newspapers and magazines. The global investor community is also taking a lot of interest in India, leading to more content being sought from the country.

The report, however, pointed out that though the E&M industry is growing, its full potential is yet to be tapped.

PwC and Ficci have asked the government to remove certain hurdles. The study recommended a uniform entertainment tax across all states and stated that entertainment and media should be transferred from the state list to the concurrent list through constitutional amendment. It also suggested that conversion to digitalisation should be made mandatory and should not be on a voluntary basis.

Addressing the delegates here, information and broadcasting (I&B) minister Priya Ranjan Das Munshi said a comprehensive broadcast bill is also on the cards. The amendments to the Cinematograph Act, 1952, is also being considered, he added.