The Indian Movie Industry

December 2019
 Indian Movie Industry

NOT A SINGLE MARKET
MULTIPLE OVERLAPPED
MARKETS
Split by language and culture
INDIAN ORIGIN & INTERNATIONAL
1800+ MOVIES
PER YEAR
Across 55 languages including English
INDIAN ORIGIN CONTENT
MAINLY INDEPENDENTLY
PRODUCED
1800+ movies produced by 1800+
production houses in 2018
Hindi Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Tamil
9%

Telugu
Other India- 9%
Origin
19%

Malayalam
7%

Hollywood Kannada
12% 9%
Bengali
5%

Key International Markets

• Canada, United States • Mauritius, Nigeria, Kenya, South Africa • Australia, Fiji, New Zealand
• Germany, Ireland, Netherlands, United Kingdom • Maldives, Nepal, Sri Lanka • China, Hong Kong
• Middle East • Malaysia, Singapore
Tamil Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Tamil
9% Delhi

Telugu
Other India- 9%
Origin
19%

Mumbai
Malayalam
7%
Hyderabad

Hollywood Kannada
12% 9%
Bengali
Bengaluru
5%

Key International Markets

• Canada, United States • Mauritius, South Africa • Australia, New Zealand
• France, Germany, Switzerland, United Kingdom • Maldives, Sri Lanka • China
• Middle East • Japan, Malaysia, Singapore
Telugu Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Tamil
9% Delhi

Telugu
Other India-Origin 9%
19%

Mumbai
Malayalam
7%

Hollywood Kannada
12% 9%
Bengali
Bengaluru Chennai
5%
Coimbatore

Key International Markets

• Canada, United States • Kuwait, Qatar, United Arab Emirates
• Switzerland, United Kingdom • Australia, New Zealand
Malayalam Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Tamil
9%

Telugu
Other India-Origin 9%
19%

Malayalam
7%

Hollywood Kannada
12% 9%
Bengali
5%

Key International Markets

• United States • Middle East
• United Kingdom
Kannada Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Tamil
9%

Telugu
Other India-Origin 9%
19%

Malayalam
7%

Hollywood Kannada
12% 9%
Bengali
5%
Bengali Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Tamil
9%

Telugu
Other India-Origin 9%
19%

Malayalam
7%

Hollywood Kannada
12% 9%
Bengali
5%
Hollywood Market
Source: www.moviebuff.com CY 2018

Hindi
Others 13%
17%

Chandigarh

Tamil
9% Delhi

Telugu Ahmedabad
Other India-Origin 9% Kolkata

19%

Mumbai
Malayalam Pune
7%
Hyderabad

Hollywood Kannada
12% 9%
Bengali
Bengaluru Chennai
5%
Coimbatore
 Movies Produced in India
Source: www.moviebuff.com
2000
1879
1800

1600 Hindi

1400 Tamil

1200 1126 Telugu

1000 Malayalam

800 Kannada

600 Bengali

416
400 Others

200

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
 Indian Market Numbers

INR 183 bn (USD 2.5 bn) Total Earnings in 2018

15.1% over 2017
9.6% CAGR over three years
Will grow to INR 260 billion by 2024 with 7.3% CAGR

INR 124.9 bn Domestic Box Office INR 17.2 bn International Rights INR 8.1 bn Digital Rights
Revenue in 2018 Revenue in 2018 Revenue in 2018
14.7% over 2017 16.1% over 2017 30% over 2017
6.9% CAGR over three years 20.3% CAGR over three years 29.3% CAGR over three years

Source: FICCI-KPMG Indian M & E Industry Report, 2019

Where the money comes from and where it goes.

Typical Indian Movie

 Indian Cinema Market Analysis
India is dominated by independent, non-multiplex screens
 Total commercial screens in India = 10812*
 Total cinema seats in India = 4.41 mn*
Screens/million people
 DCI screens in India = 4360* (40.7%)
in 2018

133.1

103.8
India is a terribly under-screened market
 Cinema present in only 2600 towns out of 8000+

73.1
Potential for at least 2x the number of screens

41.9
 Multiplex expansion in malls has slowed

7.9
 The ecommerce revolution is slowing mall growth even more
 Single screens breaking up into standalone multiplexes U SA UK Aust r a lia China I ndia
 Several great examples in Southern India
 Low-cost standalone multiplex projects
 Targeting tier 2/3/4 towns

* Source: Qube Wire September 2019

 Indian Cinema Market Analysis
 Reasonable consolidation by chains anticipated over medium-term

 Multiplex screens in India = 2888 (26.7%) *

 Big 4 chains = 2098 (19.4%)

 Screens in Southern Indian states = 5060 (46.8%)

 Big 4 chains = 586 (11.6%)

 However, institutionalization will likely be lower than US, UK & other developed markets

 Our estimate is that chains could eventually reach 50% in India

* Source: Qube Wire September 2019

☨ Source: Screen Australia 2018
Theatres
across
India
Box Office Growth despite OTT

Source: Elara Capital M&E Report 2019

Source: FICCI Report 2019
 OTT: A Long Road Ahead
Swimming amongst sharks
 India’s OTT market size is at USD 303 mn vs Bollywood Box Office at USD 1.38 bn*
 OTT expected to grow at ~23% CAGR over the next five years
 Subscription-based video on demand (SVoD) is a mere 18%
 This is expected to shoot up to 32%, as consumers increasingly pay for quality content online

Digital release not yet money-making

 ~75% of overall revenue comes from big screen cinema releases while digital makes up only 13%
 Rest is from TV & Satellite

Fragmentation
 India has 32 OTT platforms, including OTT from broadcasters, global tech giants and home-grown versions
 Given the myriad languages (more than 50% non-Hindi), OTT may fragment further with newer launches

Source: Elara Capital M&E Report 2019

* Source: FICCI Report 2019
OTT Ecosystem
in India

Source: FICCI-KPMG Indian M & E Industry Report, 2019

 Regional OTT Market in India
  Zee5 Sony Liv Hotstar VOOT Alt Balaji Amazon Prime Hoichoi Eros Now Netflix

Bangla ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅ ✅

Bhojpuri ✅       ✅ ✅      

Gujarati ✅ ✅ ✅ ✅ ✅ ✅   ✅ ✅

Kannada ✅   ✅ ✅   ✅   ✅ ✅

Malayalam ✅ ✅ ✅   ✅ ✅   ✅ ✅

Marathi ✅ ✅ ✅ ✅ ✅ ✅   ✅ ✅

Tamil ✅ ✅ ✅ ✅ ✅ ✅   ✅ ✅

Telugu ✅ ✅ ✅ ✅ ✅ ✅   ✅ ✅
 Regulation in the Movie Business
 The Indian Cinematograph Act, 1952 governs certification of movies
 All theatrical releases, outside of private and film festival screenings, require Central Board of Film Certification (CBFC) ratings
 U (Unrestricted Public Exhibition)
 U/A (Parental Guidance for Children below 12)
 A (Restricted to Adults)

 Movies on television, cable & satellite need certification, but advertising & original television programming is self-regulated

 OTT is completely unregulated

 The Board has its headquarters in Mumbai

 Regional offices at Trivandrum, Chennai, Hyderabad, Bengaluru, Cuttack, Guwahati, Kolkata & New Delhi

 Chairpersons and members of the panels are appointed by New Delhi

 Mix of representatives from society

 Movie theatres are regulated independently by the states

 Certain states impose price caps on movie tickets, add local taxes and regulate the number of shows!
www.qubecinema.com