SUBJECT : MANAGERIAL ECONOMICS

TOPIC : MEDIA AND ENTERTAINMENT INDUSTRY

SUBMITTED BY:
Mansi Shrivastava (36)
GUIDED BY: Meenal Bhandari (37)
Akhil Jain (10)
Dr. Rupal Chowdhary Yash Parmar (62)
ABOUT THE SECTOR:
 The Indian Media and Entertainment
(M&E) industry is a sunrise sector
for the economy and is making
significant strides.
 Proving its resilience to the world,
Indian M&E industry is on the cusp
of a strong phase of growth, backed
by rising consumer demand and
improving advertising revenue.
 According to a FICCI-EY report, the
advertising to GDP ratio is expected
to reach 0.4% by 2025 from 0.38%
in 2019.
2
Indian media and entertainment industry is growing rapidly

Market Size (US$ billion)

 According to an EY report, the Indian media and
entertainment (M&E) sector stood at Rs. 1.38 trillion (~US$ 35

19 billion) in 2020 and is estimated at Rs. 1.73 trillion (~US$

23.7 billion) in 2021. Further, it is projected to grow to Rs. 30
2.23 trillion (~US$ 30.6 billion) by 2023 due to acceleration 29.81
of digital adoption among users across geographies.
25
 The market is projected to increase at a CAGR of 17%
between 2020 and 2023.
 In FY20, digital and online added revenue stood at Rs. 26 20

billion in the M&E sector and their contribution to the sector 18.64
increased to 23% in 2020 from 16% in 2019. 15

 According to EY-Parthenon, India’s publishing industry is

likely to reach Rs. 80,000 crore (US$ 10.74 billion) by 2024. 10
 According to the FICCI-EY report 2021, the media and
entertainment business is estimated to grow 25% to reach
5
Rs. 1.73 trillion (US$ 23.29 billion) in 2021.
 Television would account for 40% of the Indian media market
0
in 2024, followed by print media (13%), digital advertising
2020 2023
(12%), cinema (9%), and the OTT and gaming industries
(8%).

3
The entertainment sector is split into ten segments

Television

Radio Online
Gaming

Print
Animation
and VFX

Media
&
Entertain
Films ment
Entertainment
Out of

Home
(OOH)
Live
Events
Music
Digital

Media

4
Segments Of Indian Media And Entertainment Industry

Share of Major Industry Segments 2020 Share of Major Industry Segments 2023P

Television
Television
1.0%1.1% 1.2% 1.0%
1.2% Digital media
1.4% Digital media
2.0% 4.3%
Print
3.8% Print
5.2% Online gaming 5.8%
Filmed entertainment
6.9%
5.5% Filmed entertainment 37.9% Online gaming
Animation and VFX 10.9% Animation and VFX
49.5%
13.7%
Live events Live events

Out of Home media 11.5%

Out of Home media
17.0% 19.0%
Radio Radio

Music Music

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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.

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TYPES OF MARKETS:

MONOPOLY OLIGOPOLY MONOPOLISTIC PERFECT

• A Few Firms with COMPETITION COMPETITION
• 1. Single Seller and
Large Number of Large Market Share. • 1. Large Number of • Many Buyers and
• High Barriers to Entry. Sellers Sellers
Buyers·
• Interdependence. • 2. Product • Homogeneity
• 2. No Close
• Each Firm Has Little Differentiation: • Free Entry and Exit 
Substitute. Market Power In Its
• 3. One Firm One • 3. Freedom of • Perfect Knowledge
Own Right.
Industry. • Higher Prices than Entry and Exit: • Absence of
• 4. Restriction on Perfect Competition. • 4. Lack of Perfect Artificial
Entry • More Efficient. Knowledge: Restrictions
• 5. Control Over • 5. Non-price
Supply· competition
DIVISION OF SEGMENTS IN DIFFERENT
MARKET:
 The three main media business models are monopoly,
oligopoly, and monopolistic competition.
 The print, recorded music, and film industries are
generally oligopolies; television is generally monopolistic
competition; and live event ticketing is essentially a
monopoly.
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.

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FILM INDUSTRY : AN EXAMPLE OF OLIGOPOLY MARKET.

• Bollywood can be categorized as a oligopolistic

industry with movies as the normal goods being sold.

• This is primarily because of the small number of

dominant suppliers in the market. Few producers, like
Sajid Nadiadwala, Karan Johar, Ekta Kapoor, Rakesh
Roshan and Aditya Chopra make the largest chunk of
movies and even though smaller producers exist, their
market share is minimal.

• Though, technically, there is free entry or exit of firms

in the market, it is very difficult for a new
actor/producer/director to capture the market because
of consumers’ loyalty to the existing market players.

• Further, the producers participate in non-price

competition including aggressive promotion and added
benefits to customers.
Threat to Cinema Industry:

• During the lockdown period, TV, gaming, digital and

OTT platforms are seeing consumption growth.

• On the other hand, outdoor consumption models

such as films, events, theme parks, are witnessing
a dramatic fall with social distancing norms in
place,

• With changing times and an increase in OTT

platforms and streaming apps in India, the
competition is getting tough. In this race of
providing great content to the viewers, there is a
clash between OTT Platform Vs Theatres.

• Many of the popular streaming apps such as Netflix

and Amazon Prime are now buying digital rights to
the highest-earning films more than ever.‌
CONCLUSION
 Indian M&E industry is on an impressive growth path. The industry is expected to
grow at a much faster rate than the global average rate.

 The entertainment industry is part of the tertiary sector of the economy and includes
many sub-industries devoted to entertainment. It applies to every aspect of
entertainment including cinema, television, radio, theatre, and music.

 The media and entertainment business is estimated to grow 25% to reach Rs. 1.73
trillion (US$ 23.29 billion) in 2021. ... In FY20, digital and online added revenue
stood at Rs. 26 billion in the M&E sector and their contribution to the sector
increased to 23% in 2020 from 16% in 2019.

 COVID19 Pandemic has caused a major transformation Media and Entertainment

Industry; such that the Media segments which involved public gatherings like Films,
Events, etc. has a hard hit however in other home-based entertainments like OTT
Platforms like Amazon, Netflix, Televisions channels, Online Gaming’s etc. noticed
major spike in consumption pattern.