The Big B, Hindi cinema superstar Amitabh Bachchan, was missing at FICCI Frames, the annual meeting of the entertainment and media (E&M) industry held by the Federation of Indian Chambers of Commerce and Industry. So was information and broadcasting minister Priya Ranjan Dasmunshi, who was supposed to inaugurate the recent three-day event in Mumbai. In his absence, there were no policy pronouncements, something that had been eagerly awaited. But most participants shrugged it off, because the unstated theme this year was not change but three other "C" words: consolidation, corporatization and convergence.

Yet change has, in fact, been occurring. As filmmaker Yash Chopra, the Frames chairman, said at the inaugural session: "New technologies and ideas and young and brilliant filmmakers are here to take the [film] industry forward. A revolution has happened in the industry." Frames co-chairman Kunal Dasgupta, CEO of Multi Screen Media (formerly Sony Entertainment), was equally optimistic about television. "What is happening in the industry is that the professionals are becoming entrepreneurs and are setting up ventures in various fields like digital distribution and content creation," he said.

Consolidation is a topic because growth has slowed. According to a report prepared by PricewaterhouseCoopers (PwC) in conjunction with FICCI, the industry grew 17% last year to $12.8 billion. That is lower than the 23% growth of the previous year and the four-year compound annual growth rate of 19%.

The report''s title, "Sustaining Growth," is a message in itself. A breakdown by industry segment reveals that television, at $5.65 billion, grew 18% last year, compared with 21% in 2006 and 23% in 2005. Filmed entertainment -- both Hindi and regional cinema -- grew 14% to $2.4 billion, down from 24% growth in 2006. Print, at $3.7 billion, grew at 16%, compared with 17% in 2006. Only online advertising's growth rate increased, but at $67.5 million, it is just a small part of the larger picture.

PwC says the industry is getting its second wind before galloping again. It projects that the television industry will grow at 23% this year and 22% annually through 2012. The numbers for filmed entertainment are not as heartening: 15% growth this year and 13% through 2012. Print is marginally better off, with projections of 14% growth in both cases.

The comparative growth rates may look small, but in a global context they are impressive. The global entertainment and media industry grew 6.5% last year to $1.53 trillion. The PwC report estimates annual growth for 2007 through 2011 at 6.4%. But even while the Indian E&M industry is a minnow in the international ocean, everyone seems to want part of it.

Private equity and foreign direct investment have been particularly active. Deals struck last year include a $56.6 million investment by Baytree Investments (Mauritius) and others in direct-to-home satellite television player Tata Sky; a $40.2 million infusion by Walt Disney