SPORTS AND ENTERTAINMENT MARKETING

ii ii ii

ASSIGNMENT

SUBMITTED BY- ii

VIKRAM GOENKA (43)

ii ii

SUBMITTED TO- ii

DR. SARADHI KUMAR GONELA

ii ii ii
 MEDIA AND ENTERTAINMENT INDUSTRY
ii ii ii

Introduction
The iiIndian iiMedia iiand iiEntertainment ii(M&E) iiindustry iiis iia iisunrise iisector iifor iithe iieconomy
iiand iiis iimaking iihigh iigrowth iistrides. iiProving iiits iiresilience iito iithe iiworld, iithe iiIndian iiM&E

iiindustry iiis iion iithe iicusp iiof iia iistrong iiphase iiof iigrowth, iibacked iiby iirising iiconsumer iidemand

iiand iiimproving iiadvertising iirevenues. iiThe iiindustry iihas iibeen iilargely iidriven iiby iiincreasing

iidigitisation iiand iihigher iiinternet iiusage iiover iithe iilast iidecade. iiInternet iihas iialmost iibecome iia

iimainstream iimedia iifor iientertainment iifor iimost iiof iithe iipeople.

The iiIndian iiadvertising iiindustry iiis iiprojected iito iibe iithe iisecond iifastest iigrowing iiadvertising
iimarket iiin iiAsia iiafter iiChina. iiAt iipresent, iiadvertising iirevenue iiaccounts iifor iiaround ii0.38 iiper

iicent iiof iiIndia’s iigross iidomestic iiproduct.

Prospects of Media and Entertainment Industry

ii ii ii ii ii

 The iiIndian iiMedia iiand iiEntertainment iiindustry iiis iion iian iiimpressive iigrowth iipath.
ii The iiindustry iiis iiexpected iito iigrow iiat iia iimuch iifaster iirate iithan iithe iiglobal iiaverage iirate.

 Growth iiis iiexpected iiin iiretail iiadvertisement, iion iithe iiback iiof iifactors iisuch iias
ii several iiplayers iientering iithe iifood iiand iibeverages iisegment, iie-commerce iigaining
ii more iipopularity iiin iithe iicountry, iiand iidomestic iicompanies iitesting iiout iithe iiwaters.
ii The iirural iiregion iiis iialso iia iipotentially iiprofitable iitarget.

 Apart iifrom iithe iiimpact iiof iirising iiincomes, iiwidening iiof iithe iiconsumer iibase iiwill
ii also iibe iiaided iiby iiexpansion iiof iithe iimiddle iiclass, iiincreasing iiurbanisation iiand
ii changing iilifestyles.

 The iientertainment iiindustry iiwill iialso iibenefit iifrom iicontinued iirise iiin iithe
ii propensity iito iispend iiamong iiindividuals; iiempirical iievidence iipoints iito iithe iifact iithat
ii decreasing iidependency iiratio iileads iito iihigher iidiscretionary iispending iion
ii entertainment.

 New iidistribution iitechnologies iilike iiDTH, iiConditional iiAccess iiSystem ii(CAS) iiand
ii IPTV, iihold iithe iifuture iiof iithe iimedia iiindustry iias iiincreasing iidigitization iiwill iiradically
ii alter iithe iiways iiin iiwhich iiconsumers iireceive iichannels. iiThe iimandatory iidigitization iiall
 ii over iiIndia iiwill iibring iiin iimore iisubscription iirevenues iifor iithe iibroadcasters iias iiopposed
ii to iiunder iireporting iiof iinumbers iiby iicable iioperators iiat iipresent. iiAlso, iicontinued
ii growth iiof iiregional iimedia iiand iigrowing iistrength iiof iithe iifilmed iientertainment iisector
ii will iialso iiboost iigrowth iiof iithe iimedia iiindustry.

 The iiadvent iiof iidigital iiplatforms iiwill iirequire iiindustry iiparticipants iito iiinvest iiin
ii constant iiinnovation iiin iiproducts iiand iiservices. iiThus, iigoing iiforward, iiinnovation iiwill
ii be iithe iikey iito iiattract iimore iiconsumers iiand iideliver iirelevant iicontent iiand iiservices
ii that iiare iiprofitable iitoo.

Segments

The iimedia iiand iientertainment iiindustry iiin iiIndia iiconsist iiof iimany iidifferent iisegments
under iiits iifolds iisuch iias iiTelevision, iiPrint, iiand iiFilms. iiIt iialso iiincludes iismaller iisegments
ii

like iiRadio, iiMusic, iiOut iiof iiHome, iiAnimation, iiGaming iiand iiVisual iieffects ii(VFX) iiand
ii

Internet iiadvertising.
ii

 Television iiIndustry: iiTelevision iiis iione iiof iithe iimajor iimass iimedia iiof iiIndia iiand iiis iia
huge iiindustry. iiToday iiIndia iiboasts iiof iibeing iithe iisecond iilargest iitelevision iimarket
ii

in iithe iiworld. iiToday iiIndia iiboasts iiof iibeing iithe iisecond iilargest iitelevision iimarket iiin
ii

the iiworld. iiIndia's iitelevision iibusiness iihas iian iiestimated ii$3.4 iibillion iiin iirevenue iiin
ii

2005. iiIndia iiis iiamongst iithe iicountries iiwith iilowest iiAverage iiRevenue iiPer iiUser iias
ii

compared iito iideveloped iicountries iilike iiUS iiand iiUK iiwhere iiARPU iiis iiaround iiUS$45
ii

to iiUS$60, iiIndia iihas iian iiARPU iiapproximately iiUS$3.5.

ii

 Print iiIndustry: iiIndian iiprinting iiindustry iiin iione iiof iithe iigreatest iiin iithe iiworld iiand iiis
counted iiamong iitop iiseven iipublishing iinations. iiThe iiIndian iiscreen iiprinting
ii

industry iican iibe iisaid iito iihave iiaround ii65,000 ii– ii1,00,000 iiprinters. iiIt iihas iian iiannual
ii

growth iirate iiof iiabout ii15-20%. iiThe iiannual iiturnover iiof iithe iiIndian iiprint iiindustry
ii

is iimore iithan iiRupees ii50,000 iicrores. iiWith iithe iirise iiin iiliteracy iiin iipast iidecade iihas
ii

let iito iithe iirise iiof iiregional iinewspapers, iithey iihave iimuch iigreater iireach iiand iia
ii

large iiaudience iito iientertain.

ii

 Film iiIndustry: iiFilms iiare iithe iimost iiimportant iiform iiof iientertainment iiin iiIndia. iiFilm
industry iiin iiIndia iiis iilargest iiin iithe iiworld iiin iiterms iiof iifilms iiproduced.
ii

Approximately iitwenty-three iimillion iiIndians iigo iito iisee iia iifilm iievery iiday. iiFilm
ii

Federation iiof iiIndia iiis iithe iiapex iibody iiof iifilm iiindustry iiin iiIndia iiwhose iiobjective iiis
ii

to iipopularise iiand iipromote iithe iicinema. iiThere iiwere ii2000 iimultiplex iitheatres iiin
ii
 India iias iiof ii2015. iiA iiyear iilater, iimore iithan ii2.2 iibillion iimovie iitickets iiwere iisold iiin
ii

India, iiplacing iithe iicountry iias iithe iileading iifilm iimarket iiin iithe iiworld. iiIn
ii

comparison, iiabout ii1.25 iibillion iimovie iitickets iiwere iisold iiin iisecond-placed iiChina. ii
ii

 Radio iiIndustry: iiAll iiIndia iiRadio ii(AIR) iiwas iiestablished iiin ii1936 iiwhich iiis iione iiof iithe
largest iiradio iinetworks iiin iithe iiworld iiincluding iithe iiAIR iiFM. iiFamous iistations iiare
ii

Radio iiMirchi ii(of iithe iiTimes iiGroup) iihas iimaintained iia iilead iiposition iiin iimost iicities
ii

it iioperates iiin. iiThe iigovernment iihas iiapproved iiFDI iiin iiFM iiradio iichannels iito ii26
ii

percent iifrom iithe iicurrent ii20 iipercent. iiMinistry iiof iiInformation iiand iibroadcasting
ii

is iiplanning iito iirelease iiadditional iifrequencies iiin iiall iimarkets, iiautomatic iirenewal
ii

of iilicense iiat iithe iiend iiof iithe iiinitial iiterm iiof iithe iilicense iiof iithe iiterm. iiOne iiof iithe
ii

major iireasons iifor iisuch iian iiinterest iiin iithe iiindustry iiis iithe iiincreased iiprofitability.
ii

The iigovernment iihas iicut iithe iilicense iifees iito ii1/10th iiof iithe iiprevious iiamount.
ii

Segments that are likely to Grow and Decline

ii ii ii ii ii ii ii

 Broadcaster iiare iiwilling iito iipay iiover iidouble iifor iigood iiquality iiIndian iiAnimated
ii Content iias iicompared iito iidaily iisoaps, iieven iithough iithis iisegment iigets iionly ii5.6%
of iithe iiviewership iias iicompared iito ii28.4% iifor iiHindi iiGEC’s
ii

 Hindi iiGeneral iiEntertainment iiChannel ii(GEC) ii fiction ii content changing

ii

slowly. iiGEC’s iihave iifinally iiembraced iithe iitele-series iiformat iiwith iiseason-based
ii

programming
ii

 The iiDigital iiindustry iiis iiexpected iito iidouble iiboth iiby iiway iiof iimarket iisize iiand
internet iiusers
ii

 Gaming iigrew iiover ii15% iion iithe iiback iiof iimobile iigaming. iiThere iiis iian iicorrelation
between iiin iismartphone ii+ iiinternet iigrowth iiand iigaming iigrowth
ii

 Animation iihas iinot iigrown iias iimuch. iiLack iiof iioriginal iiIP iiis iithe iimajor iireason iiof iilow
growth iiin iianimation. iiCost iiis iithe iikey iidriver iiin iianimation iiservices
ii

 In iicase iiof iiRadio iigrowth iihas iibeen iivolume iidriven. iiIndia iilacks iia iilisternship
measurement iisystem
ii

 Among iitraditional iiforms iiof iientertainment, iiFilms iigrew iiby iithe iilargest iishare—
27% iiin ii2017 iito iireach iioverall iifigures iiof iiRs15,600 iicrore iiwith iibox iioffice iicollections
of iithe iitop ii50 iifilms iigrowing iiby ii11.6%
ii
  Print remained largely static, growing at 3% to reach Rs30,300 crore in 2017.
ii ii ii ii ii ii ii ii ii ii ii ii

India’s iireader iibase iistands iiat ii395 iimillion iior ii38% iiof iithe iipopulation, iihaving
ii

grown iiby ii110 iimillion iiover iithe iipast iithree iiyears. iiThe iirural iireader iibase ii(52%) iiis
ii

higher iithan iiurban ii(48%).

ii

SPORTS INDUSTRY ii

Introduction
Sport iiis iigoing iito iibe iithe iinext iibig iiindustry iiin iiIndia. iiIn iideveloped iicountries, iisports
iicontribute iiaround ii2 iito ii4 iipercentage iiof iitotal iiemployment. iiIt iiincludes iia iivariety iiof iicareer

iiprofiles iisuch iias iiAthletes, iiCoaches, iiTrainers, iiEvent iimanagers, iiPublic iirelation iiofficers,

iiCoordinator iiof iisport iiorganizations, iiMarketing iiConsultant, iiProgram iiand iiFacility iiManager,

iiProfessional iiSport iiPromoter, iiSport iiequipment iiand iiproduct iisales, iiSport iiEvent iiPlanner iiand

iiManager iiand iiSport iiSponsorship iiSpecialist. iiToday, iisport’s iicontribution iito iiIndia’s iitotal

iiemployment iiis iijust ii.05%. iiOnce, iiwe iibelieved iithat iionly iicricket iiwill iisucceed iiin iiIndia. iiBut

iigreat iiinitiatives iisuch iias iiIndian iiPremier iiLeague ii(Cricket), iiHockey iiIndia iiLeague, iiIndian

iiBadminton iiLeague, iiProkabbadi, iiIndian iiSuper iiLeague ii(Football) iihave iishown iiIndians, iia

iiworld iiof iisports iibeyond iicricket. ii iiIt iihas iithe iipotential iito iiovertake iiIT iiand iirelated iiindustries

iibefore ii2020 iiin iievery iiaspect. iiIndian iisports iiindustry iihas iian iiimpressive iigrowth iiprospect

iieven iiif iiits iifundamentals iiare iinot iisolid. iiThe iiprofessional iisports iimanagers iican iionly iibring iia

iisolid iifoundation iito iiIndia’s iisports iiindustry.

Key Indicators:
i

 The iIndian iSuper iLeague i(ISL) iwitnessed ian iimpressive icumulative iTV iviewership iof
i429 imillion iin iits iinaugural iseason iin i2014; iits iviewership ifurther igrew i26 iper icent iy-o-

y iin ithe i2015 iseason

 The ifirst iseason iof iPro iKabaddi iLeague i(PKL) iin i2014 iwas iwatched iby i435 imillion
ipeople, iand iits iviewership iincreased i20 iper icent iy-o-y iin iits isecond iseason iand i35 iper

icent iy-o-y iin iits ithird iseason

 During iits ifirst iseason iin i2015, ithe iPro iWrestling iLeague i(PWL) iwas iwatched iby ian
iaverage iof i31 imillion iviewers iper iday

 Star iIndia’s ionline icontent idelivery iplatform iHotstar’s iviewership ibase iexpanded ifrom
i41 imillion iat ithe iend iof iIPL i2015 iseason ito i100 imillion iduring iIPL i2016 iseason

 In i2014, ithe iFIFA iWorld iCup iwitnessed ia iviewership iof i55 imillion, iand iin iJune i2016,
ithe iUEFA iEuro iCup ihad i50.1 imillion iviewers ituned iin iduring ithe igroup imatches

 Cricket icontinues ito idominate isports isponsorships iin iIndia iwith i51 iper icent ishare iin ion-
ground isponsorship, i61 iper icent iin iteam isponsorship iand i64 iper icent iin iendorsements

 Online isports iconsumption iis irising iat ia ifast ipace, idriving ibroadcasters ito ibuild iand
iutilise ionline icontent idelivery iplatforms; iStar iIndia i(Hotstar) iacquired ionline

ibroadcasting irights ifor iIPL ifor iINR300 icrore iand isimilarly, iSPN iacquired ithe ionline

irights ifor ithe iFIFA iWorld iCup i(2014 iand i2018) iand ithe iUEFA iEuro iCup i2016
Source: iKPMG

India Specific Developments

i i

While icricket idominates ithe isports imarket iin iIndia, ithe icountry ihas ialso iembraced iother
isports iwith imuch izeal iand ienthusiasm. iFollowing ithe ifootsteps iof ithe iBoard iof iControl ifor

iCricket iin iIndia i(BCCI), iseveral isports ifederations iand iprivate iorganisations ihave icontributed

iin ithe idevelopment iof ileague-based itournaments i— icapitalising ion ithe iIPL imodel. iDuring

i2013–15, ieight imajor ileague-based isports itournaments iwere ilaunched; ithese iinclude iISL,

iPKL, iPremier iBadminton iLeague i(PBL) iand iHockey iIndia iLeague i(HIL). iWhile isome iof ithese

ievents itasted iinstant isuccess, iothers ifell ishort iof igaining iadequate itraction iamong iviewers,
iadvertisers ias iwell ias ibroadcasters. iPKL iand iISL iwitnessed iamazingly ihigh icumulative
iviewership i(TV) iof i435 imillion iand i429 imillion, irespectively, iover itheir iinaugural iseasons iin

i2014.20, i21 iThese inumbers ialmost imatch iup ito itheir ieldest isibling i(i.e. iIPL), iwhich ihad i552

imillion iviewers iin iits i2014 iseason.

Sponsorship imoney iraised iby iother isports iis ialso ion ithe irise. iOn-ground isponsorship iin i2015
iincreased ito ia inoteworthy i300 iper icent iin ikabaddi, i91.6 iper icent iin ifootball, i53.5 iper icent iin

imarathons iand i32 iper icent iin itennis. iISL iwas iable ito idouble iits icentral isponsorship ipool ifrom

ithe ifirst iseason iin i2014 ito ithe isecond iin i2015 i— iearning iapproximately iINR100 icrore. iPKL

ialso igenerated ia isponsorship irevenue iof iINR45 icrore ifor iits ibroadcaster iand iinvestor iStar

iIndia.

Key Challenges
i

As ithe isports isector iin iIndia iis igoverned iby iboth ithe icentral iand istate igovernments, iit iis ioften
ihampered iby ibureaucracy iand ipolitics. iThis iis imajorly idue ito ilow ilevel iof iprivate isector

iinvolvement iin isports idevelopment iin iIndia i— iexcept iin icricket. iMany ifederations iare ihighly

idependent ion igovernment ifunding ifor icarrying iout itheir ikey iobjectives, isuch ias iorganising

ichampionships, iprocuring iequipment iand itraining isportspersons. iThe icurrent imodel iof

isports igovernance inot ionly ibreeds iinefficiencies; iissues iaround iirregular iactivities ihave ialso

ibeen ireported iin ithe ipast.

Sponsorships
Sponsorship iin isports iprimarily icomprises ifive isegments ion-ground, iteam, ifranchise ifee,
isportspersons/ iendorsements iand ion-air. iIn i2015, ithe ioverall isports isponsorship imarket iin

iIndia igrew iapproximately i12.5 iper icent ito iINR5,190 icrore. iOn iair isponsorship ihas

iconsistently iaccounted ifor ithe ibulk i(52 iper icent iin i2015) iof itotal isports iadvertising iin iIndia. iIt

igrew i6.7 iper icent iin i2015, iand ithe irising ipopularity iof iseveral ileague-based itournaments,

isuch ias iIndian iSuper iLeague i(ISL), iPro iKabaddi iLeague i(PKL), iPro iWrestling iLeague i(PWL) iand

iHockey iIndia iLeague i(HIL) idrove ithe iresults. iAlso, ion iground isponsorship iwitnessed ia istark

irise iof iapproximately i30 iper icent iy-o-y iin i2015 i— idriven iby ifootball iand ikabaddi, iwherein ion

iground isponsorship irose iby i91.6 iper icent iand i300 iper icent, irespectively.

Broadcasting
Sports ibroadcasting iin iIndia ihas itaken ia inew iturn iwith ithe iadvent iof ivarious isports ileagues.
iBroadcasters iare ivying ifor ifresh iproperties ito iacquire, iand iin iturn, iare igoing iabout iincreasing

itheir iportfolio iof iTV ichannels ias iwell ias idigital iplatforms. iStar iIndia iand iSony iPictures

iNetworks i(SPN) iIndia ihave iemerged ias ithe itwo ikey iplayers iin ithe iIndian imarket; iboth iare

iinvesting iheavily iin ideveloping ia icomprehensive isports iportfolio.

Conclusion i

India ihas ia ilong ijourney iahead ion iits ipath ito ideveloping ia istrong isports iculture. iHowever, ithe
iongoing idevelopments iindicate ia ipromising ifuture. iA irising inumber iof isports istart-ups,

isignificant igrowth iin igym imemberships iand ithe iincreasing inumber iof imarathoners iin ithe

icountry, iindicate ia iclear itrend iof igrowing iconsciousness iabout ihealth iand ifitness iamongst

ithe iIndian iyouth. iThe iearly isuccess iachieved iby ileague-based ievents iacross imultiple isports

iindicates ia istrong ipotential ifor iIndians ito iconsume isports iother ithan icricket. iThis ialso

iencourages imore iand imore ipeople ito iconsider isports ias ia iprofession ifor ithemselves ior itheir

ichildren. iIncreasing iinvolvement iof inon-profits ias iwell ias ifor-profit iorganisations iin igrowth

iand idevelopment iof ibudding isportspersons iis ialso ia iboon ifor ithe icountry. iMoreover, iwith ithe

iintroduction iof ischemes isuch i‘Khelo iIndia’, ithe igovernment iis iworking ion iproviding ia irobust

istructure ifor isports idevelopment. iIn iessence, iIndia’s iroad ito isporting iglory iis ibrightly ilit iwith

ian iinclusive ieffort ifrom iall ithe istakeholders.