Essay --

The Indian Entertainment and Media Industry has performed better in the Indian economy and is considered one among fastest growing sectors of India. It is increasing on the base of economic growth and accelerating income levels that our country has been witnessing in the last few years. This is indeed proving useful to the entertainment and media industry in India as this is a rather sensitive one and it prospers faster when it is an expanding economy. An added advantage to the entertainment and media industry in India is from the point of view of demographics where the spending of the consumer is increasing as a result of increase in disposable incomes due to sustained growth in income levels and reduced income tax in the last ten years. The present size of the industry is estimated at US$ 7 billion in 2004 and is estimated to grow at a CAGR of 14 per cent to US$ 13bn by the year 2009. The Filmed Entertainment and Television segment rules the industry succeeding to Print, Radio and the Music segments. The overall Indian economy observed a slack in 2012 due to both external and domestic factors. The fiscal and monetary stimulus given by the Government of India after financial-crisis resulted in strong growth in consumption and demand in 2009-10 and 2010-11. However, this has led to higher inflation and a powerful monetary response that reduced consumption demand. Moreover, infrastructure and corporate investment were also rallied down by the strict monetary policy and the policy bottlenecks. Externally, a slow global economy weighed down by the incessant crisis in the Euro area and prevalence of uncertainty in the US fiscal policy also increased risks to development. The Central Statistical Organization’s (CSO’s) estimates show a... ...this increasing number is eventually resulting in the growth of internet advertising, which today is standing at about INR 1 billion. †¢ The internet is being utilized for a variety of purposes, besides work, like as chatting, doing transactions, leisure, blogging etc. †¢ This serves as a large potential to marketers in the sale of their products. †¢ And with wireless and broadband becoming popular, internet reach is expected to increase in leaps and bounds. BARRIERS TO INVESTMENT The following are certain barriers to investment in the media industry; †¢ Piracy. †¢ Lack of a uniform media policy for foreign investment †¢ Level playing field with incumbents †¢ Content regulation †¢ Price regulation in the television industry †¢ Cross-media ownership rules †¢ Lack of empowered regulators †¢ Merging of the FII and FDI caps †¢ Tax treatment of foreign broadcasting companies