MEDIA AND ENTERTAINMENT

December 2023
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview 6

Recent Trends and Strategies 15

Growth Drivers 19

Opportunities 28

Key Industry Contacts 31

Appendix 33

2
Executive summary
Digital and OTT
• Indian digital industry is expected to grow
at 29% to reach a market size of Rs.
35,809 crore (US$ 4.35 billion) by the end
of 2023. It is expected to contribute 38% to
the overall advertising industry in India, on
par with television.
• The growth is driven by rising content
demand by consumers in India. By 2023,
the demand for original content is
expected to reach >3,000 hours a year, up
from 1,187 hours in 2020.
• By 2025, ~600-650 million Indians, will
consume short-form videos, with active
users spending up to 55 to 60 minutes per
day.
• By 2025, regional language consumption
on OTT platforms are expected to surpass
Hindi langage, which accounted for 45% of
the total time spent in 2020.
• The OTT segment is likely to grow at a
remarkable CAGR of 14.1% to reach Rs.
21,032 crore (US$ 2.55 billion) in 2026.
Subscription services, which accounted for
90.5% of revenue in 2021, are projected to
account for 95% of revenue by 2026.
• Viewers of streaming platforms have
increased by 20% to 423.8 million in 2022
from 353.2 million in 2021, driven by rising
number of users preferring video content
over the last few years.
3
Broadcasting markets
• In the Union budget of 2022-23 the
Ministry of Information and broadcasting
received Rs. 3,980.77 crore (US$
520.24 million).
• The allocation to Prasar Bharati stood at
Rs. 2,555.29 crore (US$ 333.84 million).
• The budget for other autonomous bodies
such as the Press Council of India stood
at Rs. 27 crore (US$ 3.52 million), Films
and Television Institute of India (FTII) at
Rs. 55.39 crore (US$ 7.18 million) and
Indian Institute of Mass Communication
at Rs. 52 crore (US$ 6.79 million).
• The allocation for broadcasting under
social services stood at Rs. 2,839.29
crore (US$ 370.98 million).
• Information and publicity was allocated
funds worth Rs. 942.04 crore (US$
123.10 million).
• In July 2021, In India, SES S.A. secured
a new nine-transponder capacity
Fast growing Gaming agreement for its SES-8 satellite.
NewSpace India Limited (NSIL), a
industry Central Public Sector Enterprise (CPSE)
under the Department of Space (DoS),
• Online gaming grew 34% in 2022 to reach US$ 1.6 engaged into a multi-transponder
billion and is expected to reach US$ 2.8 billion by arrangement with the firm.
2025.
Advantage India

4
Advantage India

4. Policy Support
1. Higher Investments
► On February 25, 2021, the government
► FDI inflows in the information and outlined the Information Technology
broadcasting sector (including print (Intermediary Guidelines and Digital Media
media) stood at US$ 10.87 billion Ethics Code) Rules 2021 to establish a
between April 2000-September 2023. progressive institutional mechanism and a
► In the Union budget of 2022-23 the three-tier grievance redressal framework
Ministry of Information and for news publishers and OTT platforms on
broadcasting were allocated Rs.
3,980.77 crore (US$ 520.24 million) 1 4 the digital media.

and the allocation to Prasar Bharati
stood at Rs. 2,555.29 crore (US$
333.84 million).
2. Robust Demand
► The country's entertainment and media
industry is expected to see a growth of
9.7% annually in revenues to reach US$
73.6 billion by 2027.
► According to a report published by
IAMAI and Kantar Research, India
internet users are expected to reach 900
million by 2025, from ~622 million
internet users in 2020, increasing at a
CAGR of 45% until 2025.
► The advertising-based video on demand
(AVoD) segment is expected to rise at a
CAGR of 24% to reach US$ 2.6 billion
by 2025.
► According to a FICCI-EY report, the
advertising to GDP ratio is expected to
reach 0.4% by 2025 from 0.38% in
2019.
Source: DPIIT, ICE 360 Survey 2016, Blue Star Investor Presentation August 2018, *BARC India Universe Update July 2018, Bombay Stock Exchange, News Article
► The Government has increased the FDI
limit from 74% to 100%.
ADVANTAGE ► In August 2022, the Government of India
auctioned India’s 5G spectrum which was
INDIA
valued at Rs. 1,50,173 crore (US$ 18.82
2 3 billion).
3. Attractive Opportunities
► Revenue of the Indian video OTT market that is
dominated by players such as Amazon Prime
Video, Netflix and Disney+ Hotstar is set to
double from US$ 1.8 billion in 2022 to US$ 3.5
billion by 2027.
► The Indian media and entertainment industry is
anticipated to reach US$ 24-100 billion by
2030.
► According to a FICCI-EY report, within the M&E
sector, TV is expected to remain the largest
segment and likely to post a CAGR of 7% to Rs.
847 billion (US$ 12.01 billion) by 2023.
► The Indian mobile gaming market is poised to
reach US$ 7 billion, in value, by 2025.

5
 Market Overview

MARKET OVERVIEW

6
The entertainment sector is split into ten segments

Television

Radio Online
Gaming

Print
Animation
and VFX

Media
&
Entertainment
Films
Entertainment
Out of
Home
(OOH)

Live
Events
Music
Digital
Media

Note: VFX - Visual Effects

Source: : KPMG - FICCI Report, 2018,, EY's Media and Entertainment report 2019

7
Indian media and entertainment industry is growing rapidly

▪ The country's entertainment and media industry is expected to see a

growth of 9.7% annually in revenues to reach US$ 73.6 billion by 2027. Market Size (US$ billion)

▪ The Indian media and entertainment sector posted a robust 19.9% 80

growth in 2022 and crossed the Rs. 2 trillion (US$ 24 billion) mark in
73.60
annual revenue for the first time led by a sharp jump in the digital
advertising mop-up. 70

▪ India's media and entertainment industry is the fifth largest market

globally and is growing at the rate of 20% annually, according to Union 60
Information and Broadcasting Minister Mr. Anurag Thakur.

▪ As per the latest report by the EY, India’s Media and Entertainment
50
Industry is expected to reach Rs. 2.34 trillion (US$ 29.2 billion), then
grow at a CAGR of 10% to reach Rs. 2.83 trillion (US$ 35.4 billion) by
2025. 40
35.40
▪ India’s OTT video industry is expected to reach Rs. 21,032 crore (US$
2.63 billion) by 2026. 29.20
30
26.00
• India’s newspapers and consumer magazines industry is expected to 24.00 24.00
21.50
reach Rs. 29,945 crore (US$ 3.756 billion) by 2026.
20
▪ In December 2020, Star Disney stated that the media & entertainment
sector has the potential to increase to ~US$ 100 billion by 2030.
10
▪ Television will account for 40% of the Indian media market in 2024,
followed by print media (13%), digital advertising (12%), cinema (9%),
and the OTT and gaming industries (8%). 0
▪ In October 2021, Prasar Bharati decided to auction its archives with the
2019 2020 2021 2022 2023P 2025P 2027P
hope of monetising the content through sales to television and OTT
platforms.
Notes: P - Projected, CAGR is calculated from Rs. figures
Source: EY report March 2022, BCG reports, PwC Report

8
Segments Of Indian Media And Entertainment Industry

Share of Major Industry Segments 2022 Share of Major Industry Segments 2025P

Television
Television
1.05%
1.00% Digital media 1.17%0.92%
1.76% 1.87% Digital media
3.48% 4.73%
Print
Print
5.10%
Online gaming 6.71%
28.11% Online gaming
8.20%
33.81% Filmed entertainment 8.05% Filmed entertainment

6.44% Animation and VFX Animation and VFX

8.16%
Live events Live events
11.92%
9.85%
Out of Home media Out of Home media
30.44%
27.23% Radio Radio

Music Music

▪ The share of traditional media (television, print, filmed entertainment, OOH, music, radio) stood at 58% of the media and entertainment sector
revenues in 2022.

▪ In 2022, television, digital, and print contributed ~ 73% to the total media and entertainment industry revenue.

▪ By FY25, the share of digital media is expected to increase to 30.44% from 27.33% in FY22.

▪ Television will account for 28.11% of the Indian media market in 2025.

Notes: P - Projected
Source: EY report March 2021

9
Television, one of the largest and fastest growing segments

Broadcaster Market Size Forecast (US$ billion) Advertising Revenue (US$ billion)

12

10
5.41
8 4.77 4.94

6 4.95 4.95 4.77

4 4.89
3.81 3.87 5.42
2 3.81 3.87

0
2021 2022 2024E 2021 2022 2024E
Advertising Distribution Ad Revenue Subscription Revenue

▪ In 2022, the television market size stood at US$ 8.62 billion and is
estimated to reach Rs. 826 billion (US$ 10.36 billion) by 2024.
▪ In 2022, the number of connected TV sets grew by 10 million.
▪ TV distribution revenue is expected to increase to Rs. 432 billion
(US$ 5.42 billion) in 2024, from Rs. 392 billion (US$ 4.77 billion) in
2022.
▪ TV advertising is expected to increase to Rs. 394 billion (US$ 4.89
billion) in 2024, from Rs. 313 billion (US$ 3.87 billion) in 2022.
▪ Advertising revenue in India is projected to reach Rs. 394 billion
(US$ 5.42 billion) by 2024.
▪ In FY22, Advertising grew 19% and crossed Rs. 1 trillion (US$ 12
billion), while subscriptions grew by 13%.
▪ As per GroupM’s TYNY report 2023, India was ranked 8th by
global ad spend, and will continue as the fastest growing market
among the top 10 ad markets in 2023.
▪ India’s subscription revenue is projected to grow at a CAGR of 2%
and reach Rs. 432 billion (US$ 4.94 billion).

▪ In June 2022, the exclusive rights for the television broadcast of

the Indian Premier League (IPL) from 2023-2027 was acquired by
Notes: E - Estimated DisneyStar.
Source: EY report March 2022

10
Gaming and digital advertising on high growth phase

▪ Animation & VFX, online gaming and OOH are emerging as the
fastest-growing segments. Industry Size of Emerging Segments (US$ billion)

▪ Mr. Apurva Chandra, Secretary, Ministry of Information &

12
Broadcasting, Government of India announced that the government is
working to soon bring an Animation, Visual Effects, Gaming and
Comic (AVGC) policy and create an AVGC Mission. 10.48
10
▪ Between 2022-25, these segments are expected to witness growth:

• Digital media (CAGR 14.7%)

8
• Animation and VFX (21.1%)
6.94
• Online gaming (19.5%)
6
• OOH (12.8%)

▪ The online gaming market in India is projected to reach US$ 2.81

billion by 2025. 4 3.94

▪ SME marketers increased their digital advertising spending and 2.81

3.06 2.31
2.88
expanded their use of online shopping channels such as Amazon and
2 1.23 1.55 1.30
Flipkart. News organisations with coverage of >450 million users 1.31
recorded an increase in revenue from digital channels in 2020. 1.02 1.64 0.64
0.20 0.69 0.26 1.08
0.51 0.45
▪ In 2020, India’s mobile gaming segment registered a market size of 0
US$ 1.2 billion and is expected to increase at a CAGR of 6.1% by 2019 2020 2021 2022 2025
2025. The country posted an average revenue of US$ 8.8 per user, Digital media Animation and VFX
with a user penetration rate of 10.1%.
Online gaming Out of Home media
▪ In March 2022, Game 24x7 raised US$ 75 million at a valuation of
US$ 2.5 billion. This funding was led by Malabar Investments.
Note: VFX- Visual Effects, OOH - Out-of-home advertising, CAGR is calculated from Rs. figure
Source: EY report March 2022

11
Rising online video subscription market in India
▪ The Indian OTT audience universe currently stands at 424 million
people, according to The Ormax OTT Audience Sizing Report 2022. Online video subscription platform, subscription share in India
Of these, 119 million are active paid OTT subscriptions in India.
2021
▪ India’s SVOD subscriptions reached 130.2 million in 2022 compared 1% 1%
5%
to 110.5 million in 2021. 1%
3%
▪ In 2022, Disney+ Hotstar led the Indian SVOD market, with a 50%
share in the total market.
4%
41%
o The Disney-owned OTT platform’s subscribed base declined 6% 4%
quarter-on-quarter to 57.7 million as of December 31, 2022.
7%
▪ Disney+ Hotstar was followed by Eros Now, with a 24% share, and
Amazon Prime Video with a 9% share.
9%
▪ The report estimated that ~90% of subscriptions for Eros Now were
bundled users. The company leveraged strategic collaborations with
domestic telcos, such as BSNL, Idea Cellular, and Reliance Jio, and
pay-TV operators such as Tata Sky Binge+, Airtel and Xstream.
24%
▪ Media company Shemaroo Entertainment is planning to spend Rs.
75 crore (US$ 9.1 million) in FY24 to bolster its broadcast and over-
the-top (OTT) businesses.

▪ In August 2023, Netflix inked a “first-of-its-kind” deal with Jio Disney+ Hotstar Eros Now
Platforms to bundle the streaming service with the carrier’s two pay- Amazon Prime Video Netflix
as-you-go plans as the American giant pushes to expand its ZEE5 ALTBalaji
subscriber base in the key Asian market. SonyLIV Apple TV+
YuppTV Voot Select
▪ In 2020, Netflix was the fourth leading platform in India, with a 7%
share and a 4.4 million subscriber base. Others

▪ By 2030, India’s over-the-top (OTT) entertainment industry will be

worth US$ 15 billion.
Source: 'India: Online Video Trends and Omdia Consumer Research Highlights' report, Omdia 2020

12
Music industry
▪ The music industry is expected to reach US$ 400 million by 2025
from US$ 199 million in 2019.
▪ About 1 million music streams were played every 3 minutes in FY23, Revenues for Music Industry (US$ million)
totalling 460 million streams per day, according to a report by 500
Redseer Strategy Consultants.
400
▪ Spotify led India’s music and audio streaming market in FY23 with a

400
26% share, as compared to just an 11% share in FY20. 300

300
▪ Growth of the sector is attributable to the trend of platforms such as

270
200

230
YouTube that continues to offer recent and video content-linked

199
music for free, which is expected to drive the paid OTT music sector 100
reaching ~5 million end-users by 2023, generating revenue of ~Rs. 2
0
billion (US$ 27 million). 2019 2021 2022 2023P 2025P
▪ According to a study conducted by Kantar and VTION, an audience
measurement and analytics company, Gaana, the streaming service India’s audio streaming market share in 2020
owned by Times Internet Ltd., had a 30% market share, followed by
JioSaavn (24%), Wynk Music (15%), Spotify (15%), Google Play
Music (10%), and others (6%) in 2020. 6%
▪ The Ficci EY media and entertainment report 2023 said that in 2022, 10%
30%
music streaming in India had an audience of approximately 208
million of which the paid subscriber base was just around 4-5 million. 15%

▪ In March 2022, Pocket FM in India raised US$ 65 million and has

plans to expand to new languages 15%
24%
▪ In March 2022, Krafton infused US$ 19.5 million in the Indian audio
content platform Kuku FM.
▪ In November 2021, digital entertainment and technology company Gaana JioSaavn Wynk Music
JetSynthesys, partnered with Mr. Sonu Nigam, an artiste, to launch
the Indian music industry's first-ever NFT (Non-fungible token) Spotify Google Play Music Others
series.

Note: P - Projected, CAGR is calculated from Rs. figures

Source: EY report March 2021 , News Articles

13
Key players in the media and entertainment industry

Television Print Films Music

Star India Pvt Ltd. Bennett, Coleman and Co Yash Raj Films Studios Saregama India Ltd.
Ltd.

Zee Entertainment Enterprises HT Media Ltd. Eros International Super Cassettes

Ltd. Media Ltd. Industries Ltd.

Multi Screen Media Pvt Ltd. Living Media India Ltd. Red Chillies Tips Industries Ltd.
Entertainments Pvt Ltd.

Source: Company websites

14
 Recent Trends and Strategies

RECENT TRENDS AND STRATEGIES

15
Notable trends in the media and entertainment industry
2. EMERGING STAKEHOLDERS IN
CLOUD GAMING
▪ The online gaming segment grew 35% in 2022 to reach Rs. 135 billion (US$ 3. DIGITAL AND OTT VIDEO
1.64 billion). It is the fourth largest segment of the Indian M&E sector. ▪ Despite a slowing economy, robust growth in digital infrastructure and
▪ The count of online gamers in India grew to reach 421 million in 2022 and of content supply digital and OTT ads increasing by 31.6% in FY22.
these, around 90-100 million are frequent players of games. ▪ Over 45 million Indian households paid for 99 million OTT video
▪ In September 2021, Bharti Airtel successfully conducted India’s first cloud subscriptions in 2022.
gaming test in a 5G environment. ▪ The video OTT market was valued at US$ 3.03 billion in FY22.
▪ In May 2021, Atechnos (an India-based provider of digital transformation
consulting, gaming and content distribution services) launched 4. REGIONAL LANGUAGE
‘GoGames.Run’, a premium cloud gaming as a service platform to offer
solutions to OTT platforms, broadcast channels, telecom operators, etc. STREAMING SERVICES
▪ According to media reports of March 2021, Microsoft is testing 1080p
streaming resolution for its Xbox Game Pass cloud gaming service. ▪ Music from South Indian languages
According to Windows Central, the cloud gaming service is currently such as Kannada, Malayalam, Tamil,
available in 720p resolution, but an upgrade to 1080p resolution would bring
and Telugu has witnessed the fastest
it in line with Google’s Stadia.
growth in the vernacular in the last
four years in FY23. The highest
1. TELEVISION contributor to OTTA with the non-
▪ India’s Direct-To-Home (DTH) film genre was Punjabi music (39%)
Services market is expected to
expand to US$ 7.59 billion in 2029
2 3 across all states.
▪ In February 2022, Spotify announced
from US$ 6.48 billion in 2023, to stream songs in 12 Indian
growing at a CAGR of 2.8%. languages (including Hindi) on its
▪ In FY22, TV penetration in India platform.
stood at approximately 70% driven ▪ According to FICCI-EY’s 2022 media
by DTH market. In FY20, DTH
registered a market share of 37% to
1 4
& entertainment industry report, the
share of regional language
the total TV market against 34% in consumption on OTT platforms will
FY19. cross 60% of the total time spent by
2025.

Source: CEAMA, Electronic Industries Association of India, Economic Times, *EY – Re-imagining India’s M&E sector, National Policy on Electronics 2019

16
OTT on an uptrend post-digitisation
▪ Growing mobile and smartphone penetration has boosted adaptation of
online video viewing in India.
▪ Indian Over-The-Top (OTT) platforms have demonstrated significant
growth in the global market, witnessing a 194% increase in revenue from Online Video Audience (million)
international viewers over the last two years.
▪ Revenue of the Indian video over-the-top (OTT) market that is dominated 700
by players such as Amazon Prime Video, Netflix and Disney+ Hotstar is 600
628
set to double from US$ 1.8 billion in 2022 to US$ 3.5 billion by 2027, 500
according to PwC’s latest report. 497 527
400 450
▪ By 2025, the number of connected smart televisions are expected to 300
reach ~40-50 million. 30% of the content viewed on these screens will be 200
gaming, social media, short video and content items produced
100
exclusively for this audience by television, print and radio brands.
0
▪ India’s OTT market minutes have increased to 204 billion minutes in 2020 2021 2022 2025P
2021 from 181 billion minutes.
▪ OTT video services market (video-on-demand and live) in India is likely
India OTT Video Services (Video-on-Demand and Live) Market
to post a CAGR of 29.52% to reach US$ 5.12 billion by FY26, driven by
rapid developments in online platforms and increased demand for quality (US$ billion)
content among users.
6
▪ OTT users in India are estimated at 353 million and active paid
5
subscriptions at 96 million, translating to a 25.3% penetration. 5.1
4
▪ According to PwC, the OTT market is expected to reach Rs. 21,032 crore
(US$ 2.57 billion) by 2026. 3
▪ As of 2022, India registered ~527 million online video viewers, including 2
streaming services and videos on free platforms such as YouTube.
1 1.4
▪ In November 2021, media consulting firm Ormax Media, launched an
0
OTT Brand Health Tracking Tool called Ormax Brand Monitor (OBM).
FY21E FY26
The tool is based on syndicated research conducted every month among
SVOD & AVOD audiences across India, to track the performance of 16
OTT platforms on key brand measures.
Notes: E - Estimate, P - Projected, OTT- Over-the-top content, SVOD - Subscription video on demand, AVOD - Advertising-based Video On Demand
Source: KPMG report - Media ecosystems: The walls fall down - September 2018, Boston Consulting Group (BCG), India Intelligence and Insights: Disney+ Hotstar: The Future of India’s
Largest Premium Digital Video Platform

17
Strategies adopted

Viewership in regional entertainment

• Regional entertainment is growing and therefore, the
• Zee Television, Star TV have their regional channels
• According to Mr. Sriram Manoharan, Founder and
Pay-per-view model
• Players are beginning to experiment
with the Indian pay-per-view platform
market, specifically for movie
premieres.
• Players such as Disney+ are releasing
movies worldwide (e.g., Mulan on
September 04, 2020) in a transactional
video on demand (TVOD) fashion;
ShemarooMe is testing this model
through its ‘Box Office’ feature, where
direct-to-digital movies can be watched
over a three-day window at Rs. 80-100
(US$ 1.08- 1.35).
suppliers are able to expand their forte in the products.
both for entertainment and news.
CEO, Contus (a SaaP company), OTT market for
South India comprises ~10 million customers and has
a huge potential to grow in the space. In May 2021,
the company announced plans to launch GudSho, an
OTT platform for content in South Indian languages.
Subscription strategies
• The smartphone package, launched
by Netflix, was aimed to reach price-
conscious customers and penetrate
deeper into the Indian market.
• Sony Liv rebranded itself and focused
on enhancing user experience with
fresh original content as a part of
‘SonyLiv 2.0.’
• By shifting away from delivering
content through various collaborations
to a single partner and direct model,
ALT Balaji increased the emphasis on
direct subscriptions. It entered into an
agreement with Zee5 to co-create
over 60 originals—to support this
change in strategy—to be delivered
exclusively on these platforms

Source: KPMG Report 2020

18
 Growth Drivers

GROWTH DRIVERS

19
Growth drivers of media and entertainment sector in India

Rising income Investments Government initiatives

Growing demand

The Government carved out

National Film Policy to mainly
tap potential in the animation
The Government of India
segment
India’s per capita income has increased the FDI limit from
been estimated at US$ 74% to 100%
2,392.31 in 2023.
The Government has set up
the National Centre of
Excellence for Animation,
Gaming, Visual Effects and
Comics industry in Mumbai

During 2017-2025, elite,

India’s media and
affluent, aspirers and next The Government will
entertainment industry
billion income classes are formulate a plan to increase
witnessed the largest merger
expected to grow at a CAGR media and entertainment
ever. The ZEE-Sony merger
of 11%, 9% 5%, and 2%, export to US$ 10 billion in the
will account for 25% of M&E
respectively next five years
market share with a
combined revenue of US$ 2
billion.

The Government is taking

efforts to boost ‘Make in
India’ initiative in the media
and entertainment industry

Note: AE - Advance Estimates, PE- Private equity, VC- Venture capital

Source: M&A and Private Equity Deal insights report by Grant Thorton

20
Income factor driving growth

▪ Apart from the impact of rising income, widening of the consumer Indian residents shifting from low to high income groups (%)
base will also be aided by the expansion of the middle-class, Million Household, 100%
increasing urbanisation and changing lifestyles. 209.10 266.50 267 271.5 289 354
▪ The entertainment industry will also benefit from a continued rise in 44.0% 31.0% 30.7% 27.6% 22.0% 11.0%
the propensity to spend among individuals. Empirical evidences point
40.0%
to the fact that decreasing dependency ratio leads to higher
discretionary spending on entertainment. 45.0%
46.0%
▪ Traditionally, only advertising has been a key source of revenue for 45.0% 45.3%
the M&E industry, but off late, revenue from subscription and value
added services has also contributed significantly. With consumers 42.0%
willing to pay for content and extra services, the subscription 26.0%
segment is going to play an important role in the post-digitisation era.
21.0%
16.2%
15.0% 15.0%

8.0% 16.0%
6.4% 7.3% 9.0%
3.0% 1.5%6.0% 2.0% 2.6% 2.9% 3.0% 7.0%
2005 2016 2017 2018 2019 2030F

Elite(>30800) Affluent(15400-30800)
Aspirers(7700-15400) Next billion(2300-7700)
Strugglers(<2300)

Note: Income distribution is calculated in constant 2015 dollars; $1=65. Because of rounding, not all percentages add up to 100. F - Forecast
Source: McKinsey Quarterly Report, Indian Habit of Being Healthy by Red Seer

21
Policy support aiding sector growth… (1/2)

1
Film
• Co-production treaties with various countries such as Italy, Brazil, UK and Germany to increase the export potential of film industry.
• Granted ‘industry’ status in 2001 for easy access to institutional finance.
• FDI up to 100% 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.
• The Film Facilitation Office (FFO) partnered with the Ministry of Railways to create an integrated single window filming mechanism to
streamline the clearance process for filming across railway premises.

2
Radio
• FDI limit in radio including private FM channels have been increased from 26% to 49%.
• Private operators allowed to own multiple channels in a city subject to a limit of 40% 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.

3
Television
• Digitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help players improve their value
chain.
• FDI limit for DTH satellite and digital cable network was raised from 74% to 100% by the Government.
• No restriction on foreign investment for up-linking and down-linking of TV channels other than news and current affairs.

22
Policy support aiding sector growth… (2/2)

4
Print
• FDI investment of up to 26% in an Indian firm dealing with publication of newspaper and periodicals.
• FDI investment of up to 26% in publications of Indian editions of foreign magazines.
• FDI investment of up to 100% in publications of scientific and technical magazines/ specialty journals/ periodicals.

5
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 to block illegal music websites.
• Adoption of revenue sharing model by Copyright Board requiring FM radio companies to share 2.0% of their net advertising revenue with
music companies.

6
Animation, gaming and VFX
• 100% FDI allowed in the sector through automatic route provided it is in compliance with the RBI 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.

7
Over-the-top (OTT) content
• In February 2021, the digital entertainment committee of the Internet and Mobile Association of India (IAMAI) finalised a code of conduct
to form the basis for self-regulation code for OTT content. The code has been endorsed by 17 OTT platforms including Netflix, Amazon
Prime Video, Disney+ Hotstar, ZEE5 and Voot.

Source: PwC India Entertainment and Media Outlook 2011, KPMG - FICCI Report 2018, News Articles

23
Key Government initiatives

1
Animation, Visual Effects, Gaming and Comic (AVGC) Centre
▪ On September 2, 2020, Government of India announced its plans to develop an Animation, Visual Effects, Gaming and Comic
(AVGC) Centre for Excellence in collaboration with IIT Bombay.
▪ The centre is expected to launch in the next 1-2 years (2021-2022).
▪ The AVGC sector is estimated to grow at ~9% to reach ~Rs. 3 lakh crore (US$ 43.93 billion) by 2024, stated Union Minister of
Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles, Mr. Piyush Goyal.

2
Merger of four government film media units with the National Film Development
Corporation of India (NFDC)
▪ In December 2020, the Union Cabinet approved the merger of four government film media units (the Films Division, the Directorate
of Film Festivals, the National Film Archives of India and the Children's Film Society, India) with the National Film Development
Corporation Limited (NFDC). This will help converge activities and resources and ensure synergy and efficiency in achieving
common mandates.

3
Renaming of The Indian Broadcasting Foundation
▪ As part of the expansion to include all digital platforms and digital (OTT) players under a single roof, in May 2021, the Indian
Broadcasting Foundation (IBF) announced the move to be renamed as the Indian Broadcasting and Digital Foundation (IBDF).
▪ As per the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, IBDF would also form a self-
regulatory body (SRB) soon.

4
Cable Television Networks (Amendment) Rules, 2021
▪ In June 2021, the Union Ministry of Information and Broadcasting notified the Cable Television Network (Amendment) Rules, 2021,
which aims to establish a three-layer statutory mechanism for citizens to raise grievances with respect to broadcasted content.

24
Funding growth in the Indian media and entertainment industry
▪ The media and entertainment industry in India put up a great show in 2020.
There were a myriad of opportunities for new-age start-ups and investors to
tap into, given the rising demand for services such as short-video apps, music
and gaming platforms across demographics. Funding Growth in Media & Entertainment Sector (US$ Million)
▪ 2022 recorded US$ 3.6 billion in PE/VC investments in the media and
entertainment sector, a 24% decline y-o-y. 5000
▪ In Q3 of CY23, eight deals were recorded in the media and entertainment
sector of India at US$ 269 million. 4500 4,692.00
▪ The following are a few promising start-ups in 2021:
4000
• Kuku FM: Vernacular non-music audio & podcast platform
• NewsBytes: Leverages AI to create content across media formats
3500
3,559.00
• Spartan Poker: Offers cash games & tournaments to gaming enthusiasts
• The Better India: Leverages content and creates community for D2C 3000
commerce
• Trell: Lifestyle community commerce platform 2500
▪ Starlight Gaming, a company owned by Taiwanese video game developer
and publisher Softstar Entertainment, plans to make an initial investment of 2000
US$ 10 million in its India operations.
▪ Media company Shemaroo Entertainment is planning to invest Rs. 75 crore 1500
(US$ 9 million) in FY24 to bolster its broadcast and over-the-top (OTT)
businesses.
1000
▪ In September 2021, Zee Entertainment Enterprises (ZEEL) announced a plan
to merge with Sony Pictures Networks India. As part of this agreement, Sony 809.00
500
plans to invest US$ 1.57 billion in the merged entity.
▪ In October 2021, Toch.ai, a SaaS platform for the video content industry,
0
raised US$ 11.75 million in Series A funding. Moneta Ventures, Baring Private
2020 2021 2022
Equity India, Mr. Binny Bansal, Ventureast, 9 Unicorns, Anthill Ventures,
Cathexis Ventures, SOSV, Artesian and Innoven Capital participated in the
funding round.
▪ In November 2021, The Viral Fever (TVF), a video on-demand and over-the-
top streaming service, raised US$ 2 million in debt from Mumbai-based
venture debt firm BlackSoil.

25
Key M&A deals in the sector
Mergers and Acquisition deals

Acquirer Target Date Value

The Good Glamm Group ScoopWhoop October NA

Zee Entertainment Enterprises (ZEEL)

Sony Pictures Networks India (merging entity) September 2021 US$ 1.57 billion
(merging entity)

ITV Network Sports Flashes’ radio business March 2021 NA

HT Media Mosaic Media Ventures July 2020 NA

RP Sanjiv Goenka Group (RPSG) Editorji July 2020 NA

ZEE Entertainment Margo Networks April 2020 72 million

PVR Ltd. SPI Cinemas August 2018 US$ 94.42 million

Dish TV Videocon D2h February 2018 US$ 2.4 billion

Zee Entertainment 9X Media and INX Music October 2017 US$ 24.56 million

Delta Corporation Gaussian Network September 2017 US$ 34.37 million

Dentsu Aegis Network (DAN) SVG Media Pvt. Ltd. April 2017 US$ 100-120 million

Hotstar Zapr Media Labs March 2017 NA

Zee Media Corporation (ZMCL) Reliance Broadcast Network (RBNL) November 2016 US$ 237.79 million

Eros International Media Ltd. Puja Entertainment June 2016 NA

PVR DT Cinemas May 2016 US$ 81.89 million

Sony Pictures Networks India Pvt. Ltd. (SPN) 9X Media Pvt. Ltd. April 2016 US$ 33 million

Zee Entertainment Sarthak TV July 2015 US$ 18.83 million

Viacom Inc. Prism TV July 2015 US$ 153 million

Notes: NA - Not Available
Source: News Articles

26
Increasing FDI inflows into the sector

► FDI inflows in the information and broadcasting sector (including FDI inflow into Information and Broadcasting sector
print media) stood at US$ 10.87 billion between April 2000- (US$ billion)
September 2023.
10.00 0.18 0.29 0.47
► Demand growth, supply advantages and policy support are the key 0.88
9.00 1.19
drivers in attracting FDI.
8.00
► In February 2021, Prasar Bharati (India) and PSM (the official State 0.64
Media of Maldives) inked an agreement to facilitate collaboration and 7.00
capacity building in the field of broadcasting. 1.52
6.00

5.00 0.97
0.30
0.10
4.00 0.70

3.00

2.00

1.00

FY19

FY23
FY13

FY14

FY15

FY16

FY17

FY18

FY20

FY21

FY22

FY24*
Note: *Until September 2023
Source: Department for Promotion of Industry and Internal Trade (DPIIT)

27
 Opportunities and Developments

OPPORTUNITIES

28
Growth opportunities in the media and entertainment segments
3. PRINT
2. DIGITAL AND OOH ▪ The print industry was worth Rs. 190 billion (US$ 2.31 billion) in 2020
and is expected to reach Rs. 279 billion (US$ 3.39 billion) by 2025.
• Indian digital industry is expected to grow at 29% to reach a
▪ According to CRISIL, print media’s revenue is anticipated to increase
market size of Rs. 35,809 crore (US$ 4.35 billion) by the end of
by 13-15% this year as a result of increased government and corporate
2023. It is expected to contribute 38% to the overall advertising
advertising spending. In FY24, the revenue of print media is predicted
industry in India, on par with television.
to reach Rs. 30,000 crore (US$ 3.63 billion).
▪ OOH (out-of-home) is estimated to reach Rs. 53 billion (US$ 640
▪ According to the EY report (2021), growth in the print segment would be
million) by 2025 from Rs. 16 billion (US$ 190 million) in 2020.
driven by publications by increasing the utility and highlighting that
legitimate news comes at a cost.
1. GAMING o The market is also expected to witness growing subscription
▪ In 2022, India had the second revenues through micro-market segmentation and bundling.
largest gamer base in the world o The growth would also be driven via creation of sector-specific
with 396.4 million gamers. advertising solutions.
▪ By 2025, online gaming is 4. MULTIPLEX
expected to have grown to ~500 ▪ Newly merged multiplex giant PVR
million players, making it the third- Inox is ready with a plan to add up
largest segment of the Indian to 175 new screens and retrofit a
M&E market. host of existing ones at an
▪ In September 2021, Mobile investment of Rs. 700 crore (US$
Premier League took its valuation
to US$ 2.3 billion by raising
2 3 85.1 million) during FY24.
▪ In November 2020, multiplex chain
capital from investors. This operator PVR Cinemas tied up
resulted in making the company with business accelerator firm
India’s second gaming unicorn. India Accelerator (IA) to mentor
start-ups working in the media and
entertainment space. Selected
1 4 start-ups will get access to PVR-
IA’s technological and business
infrastructure, mentoring, and
network-building opportunities

Source: CEAMA, Electronic Industries Association of India, Economic Times, *EY – Re-imagining India’s M&E sector, National Policy on Electronics 2019

29
New developments in the media and entertainment industry
Key Developments
• In June 2023, India, for the first time
participated at the Annecy International
Animation Festival in France and
showcased the strength its creative
economy holds.
• In April 2023, Prime Minister Mr.
Narendra Modi commissioned Low
Power FM Transmitters of capacity of
100 watt at 91 locations. These
transmitters have been installed in 84
districts of 20 states. With this, the
network of transmitters with All India
Radio has increased from 524 to 615.
The addition will further boost the
coverage of AIR to 73.5% of the
population of the country.
• In November 2021, short-format video-
sharing social networking platform
‘Lomotif’, was launched in India.
• In October 2021, Indian telecom major
Bharti Airtel, launched its Video Platform
as a Service (CPaaS)— ‘Airtel IQ
Video’. The solution, developed by
Airtel’s in-house engineering teams, will
allow entertainment companies and
broadcasters to offer OTT video
services with minimal investment by
leveraging Airtel’s video cloud platform.
• In October 2021, Prismx Global
Ventures Limited entered the growing
Digital Media Space with the launch of
‘GudGudi’, the first OTT channel
dedicated to humour.
Source: News Article
30
Partnership
• In May 2023, Viacom18-owned streaming
service JioCinema inked a multi-year content
deal with NBCUniversal (NBCU) to bolster its
premium content library. As part of the
partnership, JioCinema will get access to
thousands of hours of NBCU films and TV
series in India.
• A partnership was announced in April 2023
between the Ministry of Information &
Broadcasting and Amazon India in the field of
media, entertainment, and public awareness.
• In October 2021, Times Network announced
the launch of Times Now Navbharat — a Hindi
news channel — and ET NOW Swadesh — a
Hindi business news channel—in the US,
Canada and key international markets, in
partnership with Yupp TV.
• In September 2021, Netflix India signed a multi-
year agreement with Excel Entertainment to
strengthen its original series share in India.
• In September 2021, Reliance Entertainment
signed a 10-film agreement with T-Series at a
transaction value of Rs. 1,000 crore (US$
135.61 million).
Social Media Influencer Marketing
• Social media influencer marketing in India is estimated to grow at ~25% annually to reach Rs.
24.57 billion (US$ 300 million) by 2025, from Rs. 12.75 billion (US$ 160 million) in 2022.
• In October 2021, Snapchat reached the 100 million users mark in India and aims to
strengthen localised experiences by investing in local products, marketing initiatives and
language support.
Key Industry Contacts

31
Key industry Contacts

Agency Contact Information

G-1 To 7, Crescent Tower, Near Morya House,
Indian Motion Picture Opp. Vip Plaza, Link Road, Andheri(W), Mumbai-400053
Producers’ Association Tel: 91 77150 72777/ 88790 31147/ 91 22 2673 2868 / 2674 2892
(IMPPA) Email: imppa1937@gmail.com
Website: http://www.imppa.info
1003-04, 10th Floor, Sri Krishna, Fun Republic Lane, New Link Road,
Andheri (West), Mumbai, Maharashtra 400053
The Film and Television
Tel: 91-22-2673 3065
Producers Guild of India E-mail: girish@filmtvguildindia.org
Website: http://producersguildindia.com
A - 213, Office no: 311 Shanti Gopal Chamber, 3rd Floor, Shakarpur,
Delhi – 110092
Newspapers Association of
Tel: 91 9990926962, +91 9810226962
India (NAI) E-mail: nai.newsmedia@gmail.com
Website: www.naiindia.com

304, Competent House, F-14, Connaught Place, New Delhi - 110001

Association of Radio Tel: 91- 124-4385887
Operators for India (AROI) e-mail: info@aroi.in
Website: www.aroi.in

Crescent Towers, 7th Floor, B-68, Veera Estate, Off New Link Road,
Andheri West, Mumbai - 400 053
The Indian Music Industry Tel: 91-22- 26736301 / 02 / 03
(IMI) Fax: 91-22-26736304
e-mail: info@indianmi.org
Website: www.indianmi.org
Army and Navy Building, 3rd Floor, 148, Mahatma Gandhi Road,
Mumbai- 400001
The Indian Society of Tel: +91 (022) 2285 6045 / 2284 3583 / 2204 2116
Advertisers Fax: +91 (022) 2204 2116
E-mail: isa.ed@vsnl.net
Website: https://www.isanet.org.in

32
Appendix

33
Glossary

▪ AGV: Animation, Gaming and VFX

▪ CAGR: Compound Annual Growth Rate

▪ DPIIT: Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry

▪ DTH: Direct to Home

▪ FDI: Foreign Direct Investment

▪ FM: Frequency Modulation

▪ FY: Indian Financial Year (April to March)

▪ GST: Goods and Service Tax

▪ IPO: Initial Public Offering

▪ M&A: Merger and Acquisition

▪ M&E: Media and Entertainment

▪ PPP: Purchasing Power Parity

▪ US$: US Dollar

▪ VAS: Value Added Services

▪ VFX: Visual Effects

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

34
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91 2009 48.35
2009-10 47.42 2010 45.74
2010-11 45.58 2011 46.67
2011-12 47.95 2012 53.49
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89 2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.20 2021 73.93
2021-22 74.42 2022* 79.82
2022-23 78.60 2023* 83.15

Note: *- Until November 2023

Source: Foreign Exchange Dealers’ Association of India

35
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36