Media & Entertainment

 

Overview

The media and entertainment industry with a market value of INR 1 lakh crore, as at the end of 2014, comprises television, print, films and smaller segments like radio, music, OOH, animation, gaming, internet advertising and visual effects (VFX). With an increase in digitization and internet usage, this industry has plenty of scope for innovation and markets to tap. App-downloads has shown a healthy rise that in turn increases revenue from paid apps – US$ 144.7 million in 2014. Advertising revenue in 2014 grew at a rate of 14.2% from 2013. The media and entertainment industry has gained a lot of trust - domestically and internationally. The youngest country in the world in terms of average population age, India is a thriving market for this industry.

The major domestic players of television and film sectors of this industry are Zee Entertainment with the largest market capitalization of INR 386.40 billion followed by Sun TV Network, Dish TV and TV18 Broadcast. Dish TV offers a specialized service skill set and Eros International banks on films. With the medium to access films, videos, music and documentaries so easily available combined with a global reach for people to connect, this industry has inflated exponentially. Gaming is growing in popularity and has attracted FDI in to this segment in India. Digital media has shown colossal growth of 44.5% in digital advertising in 2014 from 2013. Over 350 broadcasters cater to 780 channels. The overall industry size is shown below to understand the potency of the various segments in the industry.

 

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Outlook

With foreign direct investment inflows in (Information and Broadcasting) sector from April 2000 to January 2015 reaching US 3890.94 million, this industry has grown in leaps and bounds. Although this industry has many small and big players offering a variety of products and services, the volatility of the industry continues to rise through many mergers and foreign injections of investments.

 

  • Cinepolis India Pvt Ltd. of the Mexican chain Cinepolis that offers movie exhibition in India will add 60 screens to bring its total count of screens to over 250 by the end of 2015.

  • Bengaluru will be the new R&D site for Twitter Inc. that is the first site outside US for this company. It will build this facility through an alliance with the local mobile marketing and analytics company ZipDial Mobile Solutions P. Ltd.

  • STAR India, a branch of 21st Century Fox, recently acquired the broadcast business of MAA Television Network Ltd.

  • Stargaze Entertainment Pvt. Ltd. – a unit of Network18 Media and Investments Ltd. controlled by Mukesh Ambani, was sold to Carnival Films Pvt Ltd.

  • By the end of 2015, SRS Cinemas, a multiplex chain of the US$ 803.87 million SRS Group, has dedicated its efforts to bring its current number of screens from 48 to 100.

  • Balaji Telefilms Ltd. has entered American television markets through an American television series ‘Brown Nation’ signed with Indus Media. Domestically, it entered in to collaboration with Kolkata based Chhayabani Pvt. Ltd. to bring forward contemporary television content.
 

The Government too has supported this sector through digitization of the cable distribution sector and granting industry status to the film industry to ease institutional funding and increased the FDI limit from 74% to 100% in cable and DTH satellite platforms. It further signed an audio-visual co-production deal with the Canadian Government to help producers exchange resources and content between the two countries. With 45 new licenses to news and entertainment channels like Star, Sony, Viacom and Zee in India, not only has it opened up new platforms to the participants, but also increased competition amongst players. Social media is on the rise and many local and international participants fight for download numbers.

 

Future Potential

2014 saw a turn of events though the introduction of Digital India: A program initiated to transform India in to a digitally empowered Society and knowledge economy. Since India ranked as the fastest growing smartphone market across the globe with 116 million internet enabled smartphones in 2014, media and entertainment companies should reap benefits of this segment. The increasing number of 3G and 2G subscribers and dropping data tariff plans combined with the advent of 4G services, internet penetration, although a weak 19% has shown plenty of potential for growth to this industry. Deferment of General Anti- Avoidance Rules, reduction of tax on royalties and fees for technical services and implementation of GST in the coming year would serve to grow M&E industry in India. Phase III Auctions for radio that commenced in 2014 should see fruit in 2015. Although the DAS rollout in the television industry has seen many obstacles, it would see increased gross billings in the coming years. With the allied film (both domestic and international), television, radio and music industries growing at enormous speeds, the collective media and entertainment industry has grown magnanimously to capacitate its segments.

 

What this report contains:

  • A detailed overview of the industry

  • Structure of the industry from both, domestic and international perspectives

  • Related industries that this industry has inter-dependencies with and their understanding

  • Detailed analysis of industry segments in terms of the value and depth of corresponding market

  • Analysis & insights about the elements and critical success factors of this industry using strategic models

  • A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020

  • Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants

  • Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models

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