India’s film industry grew by 11.5% to $1.85bn (Rs93bn) in 2011, according to a report issued by KPMG on the eve of the FICCI Frames conference in Mumbai.
The industry was boosted by a several movies crossing the $20m (Rs1bn) mark in theatrical revenues and (Rs300m) in cable and satellite sales. This is in marked contrast to the previous year when the industry had been hit by a downturn in production volumes and lack of big hits.
The growth momentum is expected to carry over into 2012 with several big Hindi movies expected over the coming year, including Agent Vinod starring Saif Ali Khan [pictured], Ek Tha Tiger with Salman Khan, Krrish 3 with Hrithik Roshan and Yash Chopra’s untitled project with Shah Rukh Khan.
Overall, India’s media and entertainment industry grew by 12% to reach $14.6bn (Rs728bn), due to strong consumption in Tier 2 and 3 cities, growth of new media and continued regional media growth. KPMG predicted that the industry would register a CAGR of 15% to reach $29.2bn (Rs1,457bn) by 2016, which is lower than earlier projections due to the global downturn.
Television continues to be the dominant media in India, with 2011 revenues of $6.6bn (Rs329bn), although sectors such as gaming and animation & VFX are increasing their share of the overall pie.
“Cable digitisation, the promise of wireless broadband, increasing DTH penetration, digitisation of film distribution and growing internet use are all prompting strategic shifts in the way companies work,” said KPMG head of M&E Jehil Thakkar. “Traditional business models are evolving for the better as a host of new opportunities emerge.”
The FICCI Frames conference (March 14-16) opens tomorrow with keynote speeches by industry figures such as MPAA chairman Chris Dodd, Star India CEO Uday Shankar, Zee Entertainment CEO Punit Goenka and Discovery Networks International president Mark Hollinger.