The entertainment industry contributes Rs 50,000 crore to Indian economy
Though the overall Indian economic growth may have slowed but the entertainment industry is in good health, contributing Rs 50,0000 crore to the economy, equating to 0.5 percent of GDP in 2013, according to the report ‘Economic Contribution of the Indian Motion Picture and Television Industry’, by financial services firm Deloitte. The sector also supports 18.8 lakh jobs.
The report also says that while the growth in total gross value added of 15 percent over 2009 indicates the growing significance of this industry in the Indian economy, industry representatives were eager to reflect that the sector had the potential to contribute on a much greater scale if content was better protected and the complex taxation of the industry reviewed.
Siddharth Roy Kapur, Managing Director – Disney India, said, “The year 2013 has been an interesting one for the Media & Entertainment industry. For Filmed Entertainment it has been another year of strong growth for the theatrical business, which still accounts for the lion’s share of overall revenue. For Television it has been a ‘wait and watch’ year, driven by changes in the regulatory environment, a new ratings system on the anvil, an overall slowdown in advertising growth and finally, a mixed report card on digitization with lower than expected growth in DTH subscribers balanced by positive signs on carriage fee reductions.”
Bollywood led the growth, with three successive films, Chennai Express, Krrish 3 and Dhoom:3, breaking the long standing all time collection record held by 3 Idiots.
Sudhanshu Vats, Group CEO, Viacom 18 Media Pvt. Ltd, said, “There is need to build capacity across people, funding, technology and infrastructure. We need to add more than 2.5 million to the workforce over the next eight years. New funding models are needed to diversify risks for investors as well as to put together larger budget productions in line with global standards. Fragmentation of media consumption across platforms and devices along with individualisation of consumer preferences demands for a structured approach towards investments in new and innovative technology solutions. Finally, an enabling infrastructure, including exhibition, internet access and broadband, theme parks, events and transponder availability, is crucial to be able to service the demand of the sector.”