Indian Media and Entertainment industry spending on information technology (IT) will reach US$300 million by 2010, a compound annual growth rate of 32 percent, according to a study by Springboard Research. A vast majority of the Media and Entertainment companies Springboard surveyed said that they have either invested or plan to invest the largest portion of their IT budget on industry-specific solutions.

A further 47% said that their largest IT investment was for a technology solution tailored towards the Media & Entertainment industry.

"From our research, we are seeing that one of the key ways for IT Vendors to gain traction in this industry is to market the M&E industry-specific benefits that they can provide,” said Nilotpal Chakravrti, Market Analyst for Springboard Research. "While many of the IT challenges Indian Media & Entertainment companies are experiencing are similar to other industries, they are perceived as being specific to Media & Entertainment and these companies are looking for industry-specific solutions to these challenges," added Chakravarti.

Springboard noted that the M&E industry globally is undergoing a rapid change related to the emergence of the Internet and Digital Media. These technology advancements are viewed by M&Amp;E as both a challenge and an opportunity. Further, the global industry is looking to IT to enable the transition to a business model that can meet M&E industry demands. This has led to a significant increase in IT investment across the M&E industry.

Global industry conditions are reflected in the Indian market, according to Springboard Research. Drivers for IT spending in the M&E industry include the urgency of Indian M&E firms to reach new markets (named by 27% of M&E respondents) and the focus on solutions that better manage and deliver M&E content (according to 24% of respondents). IT is viewed as an enabler to help M&E firms achieve these two business goals and deliver their content more efficiently within the Indian sub-continent.

"Many Indian M&E firms are looking at investments in technology as a way to more effectively deliver their content to new audiences, especially cities and towns outside of the major metropolitan areas,” Chakravarti explained.

Springboard Research’s report findings also show that:

• Software represents the largest spending component by Indian Media & Entertainment firms, followed by hardware and IT services.
• IT services is indicated as the fastest growth area of the market.
• Local IT vendors are still viewed as the primary external influencers in this industry, with IBM being the only multinational vendor of note to gain a significant number of mentions as a primary influencer.

About the market research report

Springboard Research report, "India's Booming Media & Entertainment Industry: IT Market Trends and Opportunities 2006-2010", aims to help IT vendors understand more about the opportunities that are being created by the growth of the M&E market in Asia. Springboard’s report also details the size of the M&E market and how IT can effectively tap into that market.

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