MUMBAI: According to the latest report unveiled by PricewaterhouseCoopers (PWC) titled �Indian Entertainment & Media Outlook 2010', the radio industry is projected to grow at a CAGR of 12.2 per cent over 2010-14, reaching Rs 16 billion in 2014 from the present Rs 9 billion.

The report said that in terms of share of advertisement pie, it is projected that the radio advertising industry will be able to increase its share from 4.2 per cent to 4.3 per cent in the next five years. The slower growth rate is due to a number of unresolved issues in the industry. If the launch of phase III is successful, the radio industry will grow at a much higher pace than Projected, it said.

For the music industry, PWC said that due to the tremendous uptake of the mobile VAS market, the industry is projected to grow at a CAGR of 28.6 per cent over 2010-14, reaching Rs 26.5 billion in 2014. The key growth driver for the music industry over the next five years will be digital music, and its share is expected to move from 29 per cent in 2009 to 75 per cent in 2014.

The report said that with the completion of 3G auction, digital sales will far surpass the physical sales by 2014. It is expected that in 2010, digital sales will overtake physical sales making it the fastest growing segment.

Apart from the growth in mobile industry, phase III licensing will further help the growth of the music industry.

The report also stated that the Indian Entertainment and Media (E&M) industry is poised to grow at a 12.4 per cent CAGR and is expected to be Rs 1040.8 billion by 2014. It was also noted that industry registered one of its slowest growth rates in 2009 (2.2 per cent).