New Media – Internet Industry and Economic Boom

Though the internet or digital media industry is at its infancy (growing at a rapid speed) level here in India, it has a tremendous prospect as far as the growth rate is concerned. The online media advertising market value is 218 crores in 2006-2007. More data from internet and mobile association of India revealed the scenario in details.

 73% of Internet users spend less than Rs 500 on a visit to the cinema indicating an affluent demographic. The 18-35 age group are the biggest spenders.

It has a huge growth potential. There are some of the factors we are lagging from US internet market.

1. Low Internet penetration
2. Low internet awareness (though this is growing rapid)
3. No. of aged persons are large (with low or no education)
4. Internet service is not satisfactory

With the above bottlenecks, Indian digital media sector has performed well from the last four to five years. And this sector is generation a good no. of employment (mostly related to the outsourcing jobs) with a handsome remunerations. So we can expect the industry as one of the driver of the Indian economic boom.

With large no. of revenues and employment, the disposable income in rising as well. Rising expenditure boost the demand of the products (currently earning young generation is more desperate in terms of expenditure). That will induce the producers to supply more. This in turn generate employment and revenue to the respective sectors and so on the cycle goes on.
So this internet industry is a dark horse to me.

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