Professional Documents
Culture Documents
Entertainment Industry Overview
Entertainment Industry Overview
Entertainment Industry Overview
JANUARY 2016
ENTERTAINMENT
Executive Summary..... 3
Advantage India.........4
Strategies Adopted......21
Growth Drivers.... 23
Opportunities....35
Success Stories...40
Useful Information...44
JANUARY 2016
ENTERTAINMENT
EXECUTIVE SUMMARY
With 168 million television households in 2014, India stood as the third largest television
market with USD7.9 billion revenue in 2014
In 2015, television market is expected to generate USD8.89 billion revenue
India has one of the largest broadcasting industries in the world with approximately 800
satellite television channels, 242 FM channels and more than 100 operational community
radio networks
The Information and Broadcasting (I&B) Ministry has already completed the second phase of
digitisation, which involved digitizing 10 million cable TV houses in 38 cities by April 1, 2013
while MIB has extended the deadline for Phase III & IV to December 2015 December 2016
respectively
Total of 242 FM channels (21 from the Phase - I and 221 from Phase II) are operational. The
Union Finance Minister expects private FM services to expand to 294 additional cities and
about 839 new FM channels to be auctioned in 2013-14
Rising no of subscribers
Total subscriber base for Indian television industry is expected to increase to 187 million by
2019 from 106 million in 2010
DTH subscriber base is estimated to grow from 64.5 million in 2014 to 72 million by 2017 and
76.6 million by 2020
The Indian Animation and VFX industry was worth USD744 million in 2014 and is expected to
grow at a CAGR of 16.4 per cent to reach USD1.6 billion by 2019. The Indian Animation and
VFX industry is expected to reach USD848.1million in 2015
JANUARY 2016
ENTERTAINMENT
ADVANTAGE INDIA
JANUARY 2016
ENTERTAINMENT
ADVANTAGE INDIA
Attractive opportunities
2025P
Market
Size:
>USD62.2
billion
Robust
Growingdemand
demand
2015E
Market
Size:
USD19.0
billion
Increasing
investments
Advantage
India
Policy support
Policy sops, increasing FDI limits
Measures such as digitisation of cable
distribution to improve profitability and
ease of institutional finance
Increasing liberalisation and tariff
relaxation
In 2011, Indian Government passed the
The Cable Television Networks
(Regulation) Amendment Act,2011 for
digitisation of cable television networks
by 2015
JANUARY 2016
ENTERTAINMENT
ENTERTAINMENT
THE ENTERTAINMENT SECTOR IS SPLIT INTO NINE SEGMENTS
Television
Print
Gaming
Animation
& VFX
Films
Entertainment
Out of
Home
(OOH)
Radio
Digital
Advertising
Music
JANUARY 2016
ENTERTAINMENT
THE INDIAN ENTERTAINMENT INDUSTRY IS GROWING RAPIDLY
Market size (USD billion)
32.7
29
25.5
22.2
19
17
16.9
17.5
16
13.7
12.7
60.00%
40.00%
20.00%
0.00%
FY25P
FY19P
FY18P
FY17P
FY16P
FY15E
FY14
FY13
FY12
FY11
FY10
-20.00%
FY09
100.00%
80.00%
14.4
70
60
50
40
30
20
10
0
FY08
62.2
Growth Rates
JANUARY 2016
ENTERTAINMENT
SEGMENTS OF INDIAN ENTERTAINMENT INDUSTRY
The entertainment industry continues to be dominated by the television segment, accounting for 46.3 per cent of market
share in terms of revenues, which is expected to grow further to 49.7 per cent by 2019
Television, print and films together accounted for 84.3 per cent of market share in 2014
Television is going to capture more market share in coming years and expected to contribute half of the total market by 2019
Print media would be the second largest sector and Out of Home (OOH), Radio and Gaming is expected to contribute 2.0
per cent each to the entire industry by 2019
2.1%
1.0%
1.0%
2.3%
4.9%
4.4%
TV
4.2%
TV
8.3%
Print
Films
Films
Digital Advertising
12.3%
46.3%
Digital Advertising
Animation and VFX
Gaming
Gaming
Radio
Radio
OOH
25.7%
49.7%
10.3%
19.7%
OOH
Music
Music
Source: KPMG Report 2015, TechSci Research
JANUARY 2016
ENTERTAINMENT
TELEVISION, ONE OF THE LARGEST AND FASTEST GROWING SEGMENT
With a growth rate of 15.8 per cent in 2011, Indian television industry stood second when compared with BRIC and other
major developed economies
In 2014, the television industry in India derived the major share of its revenue from advertising segment (32.6 per cent) and
the rest from subscription (67 per cent)
Nonetheless, the share of subscription in the overall revenue of the TV segment is expected to increase to 69.3 per cent by
FY19
In 2015, television market is expected to generate USD8.89 billion revenue
32.17%
30.70%
67.83%
69.30%
FY15
FY19F
Subscription Revenue
TV Advertisement
Source: KPMG Report 2015 & 2014, TechSci Research
Note: F - Forecast
JANUARY 2016
10
ENTERTAINMENT
RADIO, ANIMATION & VFX, GAMING AND DIGITAL ADVERTISING ON HIGH GROWTH PHASE
Industry size of emerging segments (USD million)
2000
1500
1000
500
0
JANUARY 2016
Radio
Gaming
Digital advertising
11
ENTERTAINMENT
ADVERTISING REVENUES
Total spending on advertising across all media stood at USD6.9 billion in 2014 which is expected to touch USD 7.9 billion in FY15
Print is the largest contributor, accounting for 42.6 per cent of the advertising share in 2014 and is projected to be 39.0 per cent in
FY16
Advertising revenue is expected to touch USD13.6 billion by 2019 at a CAGR of 12.60 per cent between 2013-19P
Print media and television together contributed for more that 80 per cent of total revenue from advertising in 2014 which is expected
to be more than 75 per cent in FY16.
TV Advertising generated a revenue of USD2.9 billion in FY15
13.6
14.0
4.1%
5.0%
15.0%
12.0
10.0%
10.0
8.0
6.9
6.7
7.9
39.0%
5.0%
6.0
OOH
4.0
-5.0%
0.0
-10.0%
FY13
FY14
Total
JANUARY 2016
FY15P
TV
Digital Advertising
0.0%
2.0
15.4%
Radio
36.5%
FY19P
12
ENTERTAINMENT
REGIONAL ENTERTAINMENT
Regional Entertainment channels comprising mostly of
regional GECs (General Entertainment Channels), regional
movies and regional music
It accounted for 23.3 per cent of the total television
viewership share in 2014
0.6%2.3%
1.2%
5.3%
Tamil
Telugu
27.6%
11.7%
Kannada
Bangali
Malayalam
12.1%
Marathi
Gujarati
14.1%
24.0%
Oriya
Bhojpuri
Others
JANUARY 2016
13
ENTERTAINMENT
KEY PLAYERS IN THE ENTERTAINMENT INDUSTRY
Television
Films
Music
Zee Entertainment
Enterprises Ltd
HT Media Ltd
Eros International
Media Ltd
Super Cassettes
Industries Ltd
Red Chillies
Entertainments Pvt Ltd
Source: Company websites, Business Week, KPMG Report 2015, TechSci Research
Note: M&E - Media and Entertainment
JANUARY 2016
14
ENTERTAINMENT
NOTABLE TRENDS IN THE ENTERTAINMENT INDUSTRY (1/3)
Television
The print industry touched USD4.62 billion in 2015 and is expected to grow at a CAGR of
8.49 per cent between 2015-2019 to reach USD6.4 billion by 2019
Increasing income levels and evolving lifestyles have led to robust growth in niche
magazines segment
Considering the huge potential in regional print markets, national advertisers are entering
these markets to increase their advertising share
Film
The Indian film industry is largest producer of films globally with 400 production &
corporate houses involved in film production
The revenues earned by the Indian film industry for 2015 will reach USD2.23 billion and is
expected to grow at a CAGR 11.12 per cent for 2015-2019
Increasing share of Hollywood content in the Indian box office and 3D cinema is driving
the growth of digital screens in the country
In 2014, the film industry added 102 (approx.) screens led by the expansion of multiplexes
in the different cities in India.
India makes about 1,500 to 2,000 movies per year and it is considered to be the fastest
country that makes movies compared to other countries as of October 2015
Source: KPMG Report 2015, Economic Times, TechSci Research
Notes: DTH - Direct to Home, 3D - Three Dimension
JANUARY 2016
15
ENTERTAINMENT
NOTABLE TRENDS IN THE ENTERTAINMENT INDUSTRY (2/3)
Growing focus on the kids genre and rise in dedicated TV channels for them
As the advertising industry grows, the share of animation driven advertisements are
expected to also grow
Surge in 3D/HD animated movies in theatres and use of animation and VFX in TV
advertising and gaming
Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian
players
Content localisation such as T20fever.com, IPL, Khel Kabaddi, etc.
AGV industry is expected to grow at a rate of 19.64 per cent to touch USD1.35 billion in
2015 from USD0.7 billion in 2010
Radio
With increasing penetration of internet and digital mediums, digital segment is expected to
outperform other sectors of entertainment
Although Out-of-Home segment has a low contribution to the total of entertainment
industry, in coming years it is going to witness a significant growth
The market size for Out of Home (OOH) is anticipated to reach USD393 million by
2015
JANUARY 2016
16
ENTERTAINMENT
NOTABLE TRENDS IN THE ENTERTAINMENT INDUSTRY (3/3)
The music industry is on fast paced growth with increasing international associations
The Indian music industry is a consortium of 142 music companies
Players are looking at new ways and mediums to monetise music, such as utilising social
media to promote music
Mobile phones, iPods and mp3 players devices that enable music on-the-go are
becoming the primary means to access music
Digital music on mobile continues to drive music industry revenue and digital revenues are
expected to reach USD507.7 million by 2020
Digital revenues contribute 55 per cent of the music industry, and is expected to contribute
close to 62 per cent by 2018
Music
831
10%
15%
Digital
Physical
245
55%
264
135
86
21
12
Phase I (Late
1990's)
JANUARY 2016
20%
69
TV & Radio
Public Performance
Phase IIIBalance*
Number of Licenses
17
ENTERTAINMENT
MUSIC INDUSTRY
Music revenues is expected to touch USD296.61
million by 2019 from USD169.65 million in 2008,
registering a growth of 5.21%
2013
2014
2015
2016
2017
265.22
222.85
188.32
2012
163.21
2011
160.58
2010
164.27
198.28
2009
192.10
161.09
2008
188.10
169.65
CAGR: 5.21%
2018
296.61
2019
JANUARY 2016
18
ENTERTAINMENT
ENTERTAINMENT
PORTERS FIVE FORCES ANALYSIS
Competitive Rivalry
Threat of New
Entrants
(Low)
Substitute Products
Bargaining
Power of
Customers
(Medium)
Competitive
Rivalry
(Medium)
Substitute
Products
(Low)
Increased globalisation
Consumers loyalty towards one
channel is less, as variety of
alternative sources of
entertainment is available
Bargaining
Power of
Suppliers
(Low)
JANUARY 2016
20
ENTERTAINMENT
STRATEGIES ADOPTED
JANUARY 2016
ENTERTAINMENT
STRATEGIES ADOPTED
Viewership in regional
entertainment
Marketing strategies
Television: A common
medium
Regional entertainment is growing and therefore, the suppliers are able to expand their
forte in the products
Zee Television, Star TV have their regional channels both for entertainment and news
The South television industry is one of the oldest operational television sectors across the
nation and is further growing due to the regional content
The Dish TV is also offering the set up boxes with many additional channels
Increasing digitisation in the country is helping such companies to further add up to their
revenues
As television industry is a dominant segment in the entertainment industry even the film
makers promote their films at this platform so as to reach to the mass audiences for
example the reality shows, TV advertisements, etc
Many film producers, actors, etc have shifted to the television industry so as to remain in
the race and maintain their fan following
Audience is the ultimate consumer in this industry and therefore films, advertisements,
music and all the products of entertainment sector is based on the tastes & preferences of
the audiences of the nation
Source: TechSci Research
JANUARY 2016
22
ENTERTAINMENT
GROWTH DRIVERS
JANUARY 2016
ENTERTAINMENT
STRONG DEMAND AND POLICY SUPPORT DRIVING INVESTMENTS
Growing
demand
Growing demand
Policy support
Strong
government
Higher real
incomes and
changing
lifestyles
Policy sops,
favourable FDI
climate
Falling prices,
increasing
penetration
Policies to
enhance growing
segments like
animations and
gaming
Growing young
user base with
high access to
technology
Inviting
Increasing
liberalisation,
tariff relaxation
Driving
Innovation
Increasing
investments
Expanding
production and
distribution
facilities in India
Inflow of FDI in
sector
Use of modern
technology
Providing
support to global
projects from
India
Resulting
Increasing
domestic
investment
Expansion by
existing big
companies in the
sector
JANUARY 2016
24
ENTERTAINMENT
MULTIPLE FACTORS WILL DRIVE GROWTH IN DEMAND (1/2)
Incomes have risen at a brisk pace in India and will
continue rising given the countrys strong economic
growth prospects. Nominal per capita income have
recorded a CAGR of 8.87 per cent over 200015
2500
10.0%
8.0%
2000
1500
4.0%
1000
2.0%
2302.5
2128.8
1978.6
1832.8
1702.1
1595.7
1504.5
1514.6
1552.5
500
1430.2
6.0%
0.0%
-2.0%
-4.0%
Growth Rate
JANUARY 2016
25
ENTERTAINMENT
MULTIPLE FACTORS WILL DRIVE GROWTH IN DEMAND (2/2)
Apart from the impact of rising incomes, widening of the
consumer base will also be aided by expansion of the
middle class, increasing urbanisation, and changing
lifestyles
244
273
30%
26%
322
15%
32%
40%
43%
29%
25%
23%
3%
2015
Income
segment
6%
1%
3%
2020E
17%
7%
2030E
Globals(>22065.3)
Strivers(11032.7-22065.3)
Seekers(4413.1-11032.7)
Aspirers(1985.9-4413.1)
Deprived(<1985.9)
JANUARY 2016
26
ENTERTAINMENT
POLICY SUPPORT AIDING SECTOR GROWTH (1/2)
Television
Digitisation of the cable distribution sector to attract greater institutional funding, improve
profitability and help players improve their value chain
FDI limit is 74 per cent for DTH satellite, while for Cable network FDI limit is 49 per cent
entitled by the government
No restriction on foreign investment for up-linking and downlinking of TV channels other
than news and current affairs
Film
Co-production treaties with various countries such as Italy, Brazil, UK and Germany to
increase the export potential of the film industry
Granted industry status in 2001 for easy access to institutional finance
FDI upto 100 per cent through the automatic route has been granted by government
Entertainment tax to be subsumed in the GST; this would create a uniform tax rate regime
across all states and will also reduce the tax burden
Radio
FDI limit in radio is 26 per cent in 2015, while Telecom Regulatory Authority of India
(TRAI) has proposed to increase the limit to 49 per cent.
Private operators allowed to own multiple channels in a city, subject to a limit of 40 per
cent of total channels in the city
Private players allowed to carry news bulletins of All India Radio
Further boost may be given to the radio sector by charging license fees on the basis of
net income so as to provide relief to loss making radio players
Source: TechSci Research,
Notes: FDI Foreign Direct Investment, FII Foreign Institutional Investors
JANUARY 2016
27
ENTERTAINMENT
POLICY SUPPORT AIDING SECTOR GROWTH (2/2)
FDI/NRI investment of upto 26 per cent in an Indian firm dealing with publication of
newspaper and periodicals
FDI/NRI investment of upto 26 per cent in publications of Indian editions of foreign
magazines
FDI/NRI investment of upto 100 per cent in publications of scientific and technical
magazines/ specialty journals/ periodicals
Music
Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthens
the royalty claims of musicians, lyricists and others in the field
Policies are adopted against digital piracy and file-sharing; steps have been taken to block
illegal music websites
Adoption of revenue sharing model by Copyright Board requiring FM radio companies to
share 2.0 per cent of their net advertising revenues with music companies
100 per cent FDI allowed in the sector through automatic route provided it is in compliance
with Reserve Bank of India guidelines
The government has carved out a National Film Policy to tap the potential of the film
sector mainly for the animation segment
State-level initiative by governments to encourage animation industry. For example: Visual
effects community in Bengaluru
Source: PwC India Entertainment and Media Outlook 2011, KPMG Report 2015, TechSci Research
JANUARY 2016
28
ENTERTAINMENT
DIGITISATION A GAME CHANGER (1/2)
In December 2011, the Indian Government passed The Cable Television Networks (Regulation) Amendment Act for Third
phase of digitisation of cable television networks by 2015.
The Information and Broadcasting (I&B) Ministry completed the second phase of digitisation, which involved digitising 16
million cable TV houses in 38 cities by April 1, 2013 and aims to complete the third phase of digitisation which includes all
other urban areas (municipal corporations/ municipalities) by September 30, 2014. The rest of the country is likely to be
covered by December 2014 under phase four of digitisation. The digital subscribers are expected to outdo the analog
subscribers by 2013-14
The cable operators under the digitisation regime are legally bound to transmit only digital signals, while the customer can
access the subscribed channels through a set-top box
The number of DTH subscribers in India is expected to increase from 48 million 2015 to 76 million by 2019
USD81.2 million has been allocated for launching a pan-India programme named Digital India and a national rural internet
and technology mission for services in villages and schools, training in IT skills and e-kranti for government service delivery
and governance scheme
Status of digitisation
Phase
Digitisation
including DTH
Gross billing
Phase 1
June -12
>90% (100%
excluding Chennai)
Phase II
March-13
>95%
Completed in March 13
Phase III
December -15
~50%
Phase IV
December- 16
~25%
JANUARY 2016
29
ENTERTAINMENT
DIGITISATION A GAME CHANGER (2/2)
Advantages of Digitisation
Higher consumer preference, which lacked in the former Conditional Access System (CAS)
Consumers will be able to select content of their choice as well as indefinitely store and access digital content
The digital platform in films also includes the video-on-demand feature on television
Higher transparency; subscriber declaration level is expected to increase to 100 per cent under post-digitisation regime as
compared to 1520 per cent as declared by Local Cable Operators (LCOs) to Multiple System Operators (MSOs)
Pre-digitisation
Post-digitisation
100
100
6570
3550
05
1520
2530
Broadcaster
1015
3035
Distributor
JANUARY 2016
30
ENTERTAINMENT
ARPU ON AN UPTREND POST - DIGITISATION
Presence of analog cable and higher contribution has led to
lower Average Revenue Per User (ARPU) level, which is
around USD3.4 for a digital pay television
5.82
5.1
5.35
4.6
4.85
4.1
4.43
3.75
4.1
3.57
3.72
3.15
2.9
3.3
FY13
FY14
FY15E
FY16F
Digital Cable
FY17F
FY18F
FY19F
DTH
Digital cable on the other hand, has not seen any significant
ARPU increases as compared to the DTH ARPU. For digital
cable, deployment of different channel packages will be the
key driver to raise ARPUs
Total number of DTH subscribers as of 30th June 2015 are
78.74 Million, out of which 39.74 Million are active subscribers
JANUARY 2016
31
ENTERTAINMENT
INCREASING INVESTMENTS IN THE SECTOR - KEY DEALS AND FDI INFLOWS (1/3)
Consolidation will be the major route to grow inorganically for entertainment companies in order to expand their portfolios
and enter into new regions
Dentsu acquired 80 per cent stake in Webchutney, a digital marketing company
News Corp exited its non-core businesses in India by selling its investment in Star News (stake acquired by the ABP Group)
and Hathway Cable & Datacom (stake acquired by Providence Equity Partners)
In 2014, Radio City has been acquired by Jagran Prakashan Group. Further, inn the same year, ENIL acquired TV today
groups Oye FM.
Cumulative FDI inflows into Information & Broadcasting (Including Print Media) reached USD4.3 billion during April 2000September 2015
2380
60
2500
2000
50
1541
40
30
20
1500
61
1017
42
36
10
500
26
224
0
2011
JANUARY 2016
1000
2012
Number of Deals
2013
2014
Value of Deals
32
ENTERTAINMENT
INCREASING INVESTMENTS IN THE SECTOR - KEY DEALS AND FDI INFLOWS (2/3)
Mergers and Acquisitions (M&A) deals in 2015
Acquirer
Target name
Value
PVR
DT Cinemas
USD81.89 millin
Zee Entertainment
Sarthak TV
USD18.83 million
Prism TV
USD153 million
BIG Cinemas
USD111 million
USD61 million
Radio City
USD60 million
Viacom Inc
In August 2015, Viacom Inc (US based entertainment giant) acquired Reliance Industries entity Prism TV for a deal value
of USD153 million
In July 2015, Media firm Zee Entertainment Enterprises Limited (ZEEL) acquired 100 per cent stake of Sarthak TV for an
all cash deal which is valued at USD18.83 million
In May 2015, PVR acquired DLFs DT Cinemas at a deal value of USD81.89 million
JANUARY 2016
33
ENTERTAINMENT
INCREASING INVESTMENTS IN THE SECTOR - KEY DEALS AND FDI INFLOWS (3/3)
Cumulative FDI inflows into Information and
Broadcasting from April 2000 (USD billion)
4.3
4.0
3.6
3.7
FY13
FY14
2.9
2.2
1.8
1.3
0.6
FY8
FY9
FY10
FY11
FY12
FY15
FY16*
JANUARY 2016
34
ENTERTAINMENT
OPPORTUNITIES
JANUARY 2016
ENTERTAINMENT
GAMING IN INDIA AND OPPORTUNITIES FOR DOMESTIC FIRMS
Gaming can be classified under four segments Personal Computer Games (PC), Mobile Games, Console Games and
Online Games. The growth is driven by rising younger population, higher disposable incomes, introduction of new gaming
genres, and the increasing number of smartphone and tablet users
The mobile gaming industry in India was estimated at about USD416 million in 2015 and is projected to witness a CAGR of
42.35 per cent (2015-2018)
The PC gaming segment is estimated at USD59.7 million in 2014 and is expected to grow at CAGR of 16.8per cent to touch
USD130.0 million in 2019
Incentives provided by state governments, for units in SEZ as specified in Union Budget 2016, to encourage gaming and
animation industry
Opportunities** for Indian gaming firms across the segments value chain
Concept
creation
Pre-production
Development
Post- production
and testing
Final testing
Console
Very strong
Strong
Good
Good
Good
Mobile
Good
Good
Good
Good
Good
PC
Strong
Strong
Good
Good
Good
Online
Strong
Strong
Good
Good
Good
Source: Media and Entertainment in India: Digital Road Ahead by Deloitte, TechSci Research; KPMG Report 2015
Notes: **We have portrayed the intensity of opportunities in each segment based on the extent of Indian players current presence in that segment,
JANUARY 2016
36
ENTERTAINMENT
OPPORTUNITY FOR BOTH DIGITAL CABLE AND DTH PLAYERS
Number of subscribers (million)
JANUARY 2016
29
25
19
11
48
11
61
12
72
74
76
85
90
94
45
67
74
65
40
37
34
31
5
8
8
28
10
12
12
69
70
68
55
27
FY10
FY11
FY12
FY13
Analog
Digital
DTH
Other Digital
37
ENTERTAINMENT
OPPORTUNITIES ACROSS SEGMENTS IN THE ENTERTAINMENT INDUSTRY (1/2)
Television
Television industry is worth USD10.3 billion in 2015 and is expected to grow at CAGR of
20.5 per cent for 2015-2020 to reach USD26.1 billion
The television advertising market reported a moderate growth of an estimated 12.7 per
cent in 2015. The revenues generated was USD2.6 billion in 2014 and expected to touch
USD2.9 billion in 2015
Television is projected to garner half of the media and entertainment pie by end of 2015
(as addressable digitisation is expected to cover the entire country by then)
The Indian animation industry was worth USD744.86 million in 2014 and is expected to
expand at a CAGR of 16.4 per cent to USD1.6 billion by 2019
Growth in international animation films, especially 3D productions, and the subsequent
work for Indian production houses will help the growth in this segment
Animation, Gaming & VFX industry is expected to reach USD1.35 billion in 2015
The print industry was worth USD4.4 billion in 2014 and with a CAGR of 8.1 per cent for
2014-2019, it is expected to reach USD6.4 billion by 2019
Accelerated growth is forecasted in regional print and local news segments
Print industry will reach USD4.62 billion in 2015
Source: KPMG Report 2015, TechSci Research
JANUARY 2016
38
ENTERTAINMENT
OPPORTUNITIES ACROSS SEGMENTS IN THE ENTERTAINMENT INDUSTRY (2/2)
Film
Size of the Indian film industry is expected to touch USD3.4 billion by 2019, up from
USD2.23 billion in 2015 at a CAGR of 11.2 per cent
Increasing digital screens and 3D films are expected to help industry growth
In order to promote India as a location destination for foreign production houses, the
government is setting up a single window clearance system for shooting permissions
To promote joint productions, co-production agreements have been signed with Italy,
Germany, Brazil, UK, France, New Zealand, Poland, Spain and Canada
Radio
Size of the Indian radio industry is expected to reach USD658.3 million by 2019, up from
USD425 million in 2015
Phase III of e-auctions for FM radio licenses will provide an impetus to the segment
Radio advertising is another area likely to experience accelerated growth
Music
Size of the music industry is expected to grow to USD315 million by 2019, up from
USD170 million in 2015
Mobile VAS and arrival of 3G are likely to lead to a surge in paid digital downloads
Phase III radio licensing will also help in increasing music revenues from radio
Source: KPMG Report 2015, TechSci Research
JANUARY 2016
39
ENTERTAINMENT
SUCCESS STORIES
JANUARY 2016
ENTERTAINMENT
UTV - ONE OF THE LARGEST MEDIA CONGLOMERATES
Disney becomes a
majority share
holder with a stake
of 99.7 per cent
Interactive
Launched IPO as
UTV Software
communications
Ltd
Broadcasting
Broadcasting
Ventured into
internet content
creation and
aggregation
Games
Games content
content
Started as a
content provider
for Doordarshan
Motion
Motion pictures
pictures
Acquires
Indiagames Ltd,
enters gaming
software and
content
Number one
company in
mobile
gaming
Became worlds
first company to
record over 100
million downloads
on Nokia store
Launched
Hungama TV
Television
Television content
content
1985-90
2000
2003
2005
2007
2008
2009
2012
2013
2014
2015
JANUARY 2016
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ENTERTAINMENT
SUN TV: THE SOUTH-INDIAN BEHEMOTH
Enters Film
Production and
Distribution
through SUN
Pictures
Magazine
Acquires
Dinakaran
newspaper, Tamil
Nadus leading
daily
Newspaper
Collaborated
with iTunes,
YouTube
Launches three
pay channels and
four ad-free action
movie channels
Launches a slew of
other channels in
various South Indian
languages
Radio
Launches SUN
Direct to provide
DTH services
Motion pictures
Founded as
Sumangali
Publications
Direct to Home
1985-90
JANUARY 2016
Launches four
channels for age
group 4-14 in
different regional
languages
SUN TV is
launched with
daily three hours
of programming
Broadcasting
2000
2003
2005
2007
2008
2009
2012
2013
2014
2015
42
ENTERTAINMENT
DISH TV ON A HIGH GROWTH PHASE
Dish TV revenues (USD million)
CAGR: 15.1%
460.05
417.60
398.51
414.57
314.92
243.87
228.78
FY11
FY12
FY13
FY14
FY15
FY16*
JANUARY 2016
43
ENTERTAINMENT
USEFUL INFORMATION
JANUARY 2016
ENTERTAINMENT
INDUSTRY ASSOCIATIONS ... (1/2)
Indian Motion Picture Producers Association (IMPPA)
"IMPPA HOUSE, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050
Tel: 91-22-26486344/45/1760
Fax: 91-22-26480757
Website: www.indianmotionpictures.com/imppa/index.html
JANUARY 2016
45
ENTERTAINMENT
INDUSTRY ASSOCIATIONS ... (2/2)
Association of Radio Operators for India (AROI)
304, Competent House, F-14, Connaught Place, New Delhi - 110001
Tel: 91- 124-4385887
e-mail: info@aroi.in
Website: www.aroi.in
JANUARY 2016
46
ENTERTAINMENT
GLOSSARY (1/2)
AGV: Animation, Gaming and VFX
ARPU- Average Revenue Per User
JANUARY 2016
47
ENTERTAINMENT
GLOSSARY (2/2)
M&E: Media and Entertainment
PPP: Purchasing Power Parity
USD: US Dollar
VAS: Value Added Services
VFX: Visual Effects
Wherever applicable, numbers have been rounded off to the nearest whole number
JANUARY 2016
48
ENTERTAINMENT
EXCHANGE RATES
Exchange rates (Fiscal Year)
Year
Year
200405
44.81
2005
43.98
200506
44.14
2006
45.18
200607
45.14
2007
41.34
200708
40.27
200809
46.14
2008
43.62
200910
47.42
2009
48.42
201011
45.62
2010
45.72
201112
46.88
2011
46.85
201213
54.31
2012
53.46
201314
60.28
2013
58.44
2014-15
61.06
2014
61.03
2015-16(Expected)
61.06
2015(Expected)
63.72
JANUARY 2016
49
ENTERTAINMENT
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JANUARY 2016
50