Thursday, July 29, 2010

Indian animation sector set to grow at 21.8%, says report

India is the sweatshop for the global animation and gaming industry, expected to grow at an estimated 21.8%, but hurdles like dearth of quality talent and studios are issues affecting the nascent industry.

According to PricewaterhouseCooper's Indian Entertainment & Media Outlook for 2010, the industry is estimated to grow at Rs 23.8 billion with an increased usage of social gaming and online gaming.

According to the report, India continues to leverage its low cost advantage combined with the entreprenuerial drive of its companies to position itself on the global front but issues that are acting as hurdles include dearth of quality talent in animation and VFX, piracy affecting gaming industry, expensive hardware delaying the penetration of console gaming and lack of quality studios for high-end animation.

India's entertainment and media industry is forecast to grow by 12.4% annually to reach a size of over Rs 1.04 lakh crore by 2014, on the back of recovery in advertising and consumer spending, the study said.

"The industry is expected to touch Rs 1,04,000 crore, growing cumulatively at 12.4% by 2014," the report said. The industry witnessed a very slow growth at 2.2% in 2009 amid the global downturn that affected India partially.

This slump was largely due to the lower-than-expected uptake in advertisement spend, which registered no growth, and therefore affected sectors like print, radio as well as internet advertising. "Many of the factors, which caused the slowdown in 2009, are not likely to persist. With confidence returning alongside a likely increase in consumer and advertisement spends, the E&M industry is looking to get back to the high-growth trajectory," PwC India entertainment & media practice leader Timmy S Kandhari said.

Television is projected to continue to be the major contributor to the overall revenue pie of India's E&M industry. TV is estimated to grow at a stable rate of 12.9% cumulatively, over the next five years, to Rs 48,800 crore by 2014 from an estimated Rs 26,550 crore in 2009, the PwC report stated

No comments:

Post a Comment

21 Cards Rummy