Third largest TV market

With 161 million television households in 2013, India stood as the third largest television
market with USD15.7 Billion revenue in 2013

One of the largest

broadcasting market

India has one of the largest broadcasting industries in the world with approximately 800
satellite television channels, 245 FM channels and more than 100 operational community
radio networks
The Information and Broadcasting (I&B) Ministry has already completed the second phase of
digitisation, which involved digitising 16 million cable TV houses in 38 cities by April 1, 2013
Total of 242 FM channels (21 from the Phase - I and 221 from Phase II) are operational. The
Union Finance Minister expects private FM services to expand to 294 additional cities and
about 839 new FM channels to be auctioned in 2013-14

Rising no of subscribers

Fast growing animation

industry
exceptional growth in
film industry

The number of cable & satellite subscribers reached to 139 million in 2013.The total
subscriber base for Indian television industry is expected to increase to 173 million by 2016
from 95 million in 2009
DTH subscriber base is estimated to grow from 32.4 million in 2012 to 63.8 million by 2017
and 76.6 million by 2020

The Indian animation industry was worth USD685 thousand in 2013 and is expected to grow
at a CAGR of 15.9* per cent to reach USD1.3 million by 2018

The Indian film industry film in expected to grow to USD3.8 billion by 2018

Source: KPMG Report, 2014; NASSCOM, Report Planning Commission, Aranca Research
Note: * in INR terms

Market
Size:
USD15.7
billion

Attractive opportunities

Robust demand
Growing
demand

2013

Rising incomes and evolving

lifestyles have led to higher demand
for aspirational products and
services
Higher penetration and a rapidly
growing young population coupled
with increased usage of 3G and
portable devices would augment
demand

Increasing
investments

Industry is set to expand at a CAGR

of 15.2 per cent over 201217, one
of the highest rates globally
Television and AGV segments
expected to lead industry growth;
opportunities in digital technologies
as well

Advantage
India

Higher FDI inflows

Increasing M&A activity
More big-ticket deals such as Walt
Disney- UTV, Sony-ETV and ZeeStar
Entry of big players across all
segment of industry

2018E
Market
Size:
USD29.0
billion

Policy support

Policy sops, increasing FDI limits

Measures such as digitisation of
cable distribution to improve
profitability and ease of institutional
finance
Increasing liberalisation and tariff
relaxation
The Cable Television Networks
(Regulation) Amendment Act,2011 to
amend the Cable Television
Networks (Regulation) Act, 1995

Source: KPMG Report 2014, Aranca Research, Report Planning Commission

Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition, CAGR - Compound Annual Growth Rate, FDI - Foreign Direct
Investment, Deadline for the entire country to be digitised is December 2014, E Estimate

Television
Print

Gaming

Animation
& VFX

Films

Entertainment

Out of
Home
(OOH)

Radio

Digital
Advertising

Music

Source: KPMG Report 2013, Aranca Research

Note: VFX - Visual Effects

29.0
25.7

25

20%
15%

22.6
10%
19.5

20

15

12.6 12.4

14.3

15.5 15.1 15.7

5%

16.9

0%

Size (USD billion)

2018F

2017F

2016F

2015F

2014F

2013

2012

-5%
2011

10
2010

The next five years will see digital technologies increase

their influence across the industry leading to a sea change
in consumer behaviour across all segments

30

2009

The industry is expected to grow at a CAGR of 14.2* per

cent from 2013-2018 to reach USD29.0 billion in 2018 with
a contribution of film industry of around USD4 billion

Market size (USD billion)

2008

In 2013, the Indian Media & Entertainment (M&E) industry

registered a growth of 11.8 per cent over 2012 and touched
USD15.7 billion

Growth (RHS)

Source: KPMG Report 2014, Aranca Research

Notes: F - Forecast, CAGR - Compound Annual Growth Rate,
* in INR terms

The entertainment industry continues to be dominated by the television segment, accounting for 45 per cent of market share
in terms of revenues, which is expected to grow further to 50 per cent by 2018
Television, print and films together account for 86 per cent of market share in 2013
Television is going to capture more market share in coming years and expected to contribute half of the total market by 2018
Print media would be the second largest sector and Out of Home (OOH), Music and Gaming is expected to contribute 2.0
per cent each to the entire industry by 2018

Size of major industry segments (2013)

Size of major industry segments (2018)

Television

2%
2% 4% 3%
2%
1%

Print
Films

2%
2% 5%
2% 1%

Television

6%

Print

Films

Radio

14%

45%
Music

Radio
12%

50%

Out of Home

Out of Home

Animation & VFX

Animation and VFX

27%

Gaming

Music

Gaming
21%

Digital Advertising

Digital Advertising
Source: KPMG Report 2014, Aranca Research

With a growth rate of 15.8 per cent in 2011, Indian television industry stood second when compared with BRIC and other
major developed economies
In 2013, the television industry in India derived the major share of its revenue from advertising segment (33 per cent) and
the rest from subscription (67 per cent)
Nonetheless, the share of subscription in the overall revenue of the TV segment is expected to increase to 71 per cent by
2018

Televisions revenue segments

Growth of television industry (in 2011)

Brazil

22.5%

India

15.8%

Russia
China
United
Kingdom

United States

67%

71%

33%

29%

14.4%
10.6%
3.6%
2.1%
2013
TV advertising

2018F
Subscription revenues

Source: KPMG Report 2014 & 2013, Aranca Research

Note: F - Forecast

Animation (15.9* per cent)

With increasing use of internet and other digital resources,
Digital Advertising is expected to grow at the fastest rate
among peers like print media, radio and outdoor advertising

Radio

Animation and VFX

Gaming

Digital Advertising

2018F

2017F

2016F

2015F

2014F

2013

2012

2011

Radio (18.1* per cent)

2010

Gaming (16.2* per cent)

2009

Digital advertising (27.7*per cent)

1,800
1,600
1,400
1,200
1,000
800
600
400
200
2008

During 2013-2018, these segments are expected to

increase at a CAGR of:

Industry size of emerging segments (USD million)

2007

Radio, animation & VFX, gaming and digital advertising are

also emerging as fast growing segments

Source: KPMG Report 2014, Aranca Research

Notes: VFX- Visual Effects; F - Forecast,
*In INR terms

Total spending on advertising across all media stood at USD6.2 billion in 2013
Print is the largest contributor, accounting for 45 per cent of the advertising share
Advertising revenue is expected to touch USD11.3 billion by 2018 at a CAGR of 13.9* per cent
Print media and television together contributed for more that 80 per cent of total revenue from advertising in 2013

Advertising revenue forecast

12

Advertising revenue share (2013)

11.3

16%
14%

10

5%

12%
8
6

5.4

6.2

10%

6.7

8%

Television
45%
Digital Advertising

4%
2

2%
2018F

2014F

0%

2013

0
2012

Print

8%

6%

Total revenue - (USD billion)

4%

Out of Home
37%

Radio

Growth (%) - RHS

Source: KPMG Report 2014, Aranca Research
Notes: OOH - Out Of Home, F Forecast, * In INR terms

Regional Entertainment channels comprising mostly of

regional GECs (General Entertainment Channels), regional
movies and regional music

Viewership in regional channels in 2013

It accounted for 23 per cent of the total television viewership

share in 2013

6%

3% 1%
1%
1%

Tamil
27%

11%

In print media, the rise in literacy rates, significant

population growth, the rise in incomes in smaller towns and
the entry of big players in regional markets is likely to drive
future expansion of circulation and readership across India

Marathi
Kannada
Bengali

Malayalam

12%

Others
24%

Viewership in South India is dominant for regional

entertainment as Tamil and Telugu together account for
more than half of the total viewership. It is comparatively
less for Oriya, Gujarati and Bhojpuri, which is equivalent to
only 1 per cent each

Telugu

14%

Oriya
Gujarati
Bhojpuri

Source: KPMG Report 2014,

Economic Times, Aranca Research

Television

Print

Films

Music

Star India Pvt Ltd

Bennett, Coleman and Co

Ltd

Yash Raj Films Studios

Saregama India Ltd

Zee Entertainment
Enterprises Ltd

HT Media Ltd

Eros International
Media Ltd

Super Cassettes
Industries Ltd

Multi Screen Media Pvt Ltd

Living Media India Ltd

Red Chillies
Entertainments Pvt Ltd

Tips Industries Ltd

Source: Company websites, Business Week, KPMG Report 2012, Aranca Research
Note: M&E - Media and Entertainment

Television

Television penetration in India was at about 60 per cent in 2013

The government announced the digitisation of cable television in India in four phases,
which would be completed by the end of 2014
The Direct-To-Home (DTH) subscription is growing rapidly driven by content innovation
and product offerings

Print

The print industry grew by 8.5 per cent to USD4.2 billion in 2013 and is expected to grow
at a CAGR of 9.0* per cent between 2013-2018 to reach USD6.1 billion
Increasing income levels and evolving lifestyles have led to robust growth in niche
magazines segment
Considering the huge potential in regional print markets, national advertisers are entering
these markets to increase their advertising share

Film

The Indian film industry is largest producer of films globally with 400 production &
corporate houses involved in film production
The revenues earned by the Indian film industry for 2013 were USD2.1 billion and is
expected to grow at a CAGR 11.9* per cent for 2013-2018
Increasing share of Hollywood content in the Indian box office and 3D cinema is driving
the growth of digital screens in the country
In 2013, the film industry added 150-200 (approx.) screens led by the expansion of
multiplexes in the tier II and tier III cities

Source: KPMG Report 2014, Economic Times, Aranca Research

Notes: DTH - Direct to Home, 3D - Three Dimension,* In INR terms

Growing focus on the kids genre and rise in dedicated TV channels for them
As the advertising industry grows, the share of animation driven advertisements are
expected to also grow
Surge in 3D/HD animated movies in theatres and use of animation and VFX in TV
advertising and gaming
Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian
players
Content localisation such as T20fever.com and ICC World Cup 2011 games

Animation, Gaming and

VFX (AGV)

Radio

Increasing FM enabled phones and car music systems

In 2014, 242 channels (Phase I & Phase II) are operating across India
In 2013, the share of audiences tuning into radio from out-of-home mediums as compared
to in-home listing increased to 23.1 per cent
Government introduced favorable guidelines for expansion of the 3rd phase of FM radio
broadcasting services, which will bring 294 towns and 839 stations under FM coverage
Liberalisation of policy on community radio took place in 2008 which led to 29 community
radio stations getting operational in the country

Out of Home and digital

With increasing penetration of internet and digital mediums, digital segment is expected to
outperform other sectors of entertainment
Although Out-of-Home segment has a low contribution to the total of entertainment
industry, in coming years it is going to witness a significant growth
Source: KPMG Report 2014, Press Information Bureau,
Economic Times, Aranca Research

Music

The music industry is on fast paced growth with increasing international associations
The Indian music industry is a consortium of 142 music companies
Players are looking at new ways and mediums to monetise music, such as utilising social
media to promote music
Mobile phones, iPods and mp3 players devices that enable music on-the-go are
becoming the primary means to access music
Digital music on mobile continues to drive music industry revenue
Digital revenues contribute 53 per cent of the music industry, and is expected to contribute
close to 62 per cent by 2018

Digital revenues for the music industry (2013)

11%
Digital
15%
Physical
53%
Radio and TV
21%

Public preformance

Source: KPMG Report 2014, Economic Times, Aranca Research

Competitive Rivalry

Highly fragmented industry that is no single enterprise has large

enough share to influence the entire sector
High fixed costs and highly perishable products

Threat of New Entrants

High sunk costs are involved

High capital requirements
Access to distribution is difficult

Bargaining Power of Suppliers

The number of suppliers is very

high which leads to the low
bargaining power with them
Increasing number of content
providers

Threat of New
Entrants
(Low)

Substitute Products

Film industry, print media and

internet
Significant sporting events like
World Cup,T20,etc and other
cultural events

Bargaining
Power of
Customers
(Medium)

Competitive
Rivalry
(Medium)

Substitute
Products
(Low)

Bargaining Power of Customers

Increased globalisation
Consumers loyalty towards one
channel is less, as variety of
alternative sources of
entertainment is available

Bargaining
Power of
Suppliers
(Low)

Source: Aranca Research

Viewership in regional
entertainment

Marketing strategies

Television: a common
medium

Audience: the ultimate

consumer

Regional entertainment is growing and therefore the suppliers are able to expand their
forte in the products

Zee Television, Star TV have their regional channels both for entertainment and news

The South television industry is one of the oldest operational television sectors across the
nation and is further growing due to the regional content

The manufacturing companies such as Videocon is offering combo deals such as

LED/LCD sets with Videocon set-up boxes and dish services

The Dish TV is also offering the set up boxes with many additional channels

Increasing digitisation in the country is helping such companies to further add up to their
revenues

As television industry is a dominant segment in the entertainment industry even the film
makers promote their films at this platform so as to reach to the mass audiences for
example the reality shows, TV advertisements, etc

Many film producers, actors, etc have shifted to the television industry so as to remain in
the race and maintain their fan following

TV programmes being used as a medium of promoting films or other entertainment events

Audience is the ultimate consumer in this industry and therefore films, advertisements,
music and all the products of entertainment sector is based on the tastes & preferences of
the audiences of the nation
Source: Aranca Research

Growing
demand

Growing demand

Policy
support
Strong
government
support

Higher real
incomes and
changing
lifestyles

Policy sops,
favourable FDI
climate

Falling prices,
increasing
penetration

Policies to
enhance growing
segments like
animations and
gaming

Growing young
user base with
high access to
technology

Inviting

Increasing
liberalisation,
tariff relaxation

Driving

Innovation

Increasing
investments

Expanding
production and
distribution
facilities in India

Inflow of FDI in
sector

Use of modern
technology

Providing
support to global
projects from
India

Resulting

Increasing
domestic
investment

Expansion by
existing big
companies in the
sector

Source: Aranca Research

Rising per-capita income in India (USD)

2,500
2,000

Rising incomes, with its positive impact on the consumer

base, will be the key growth driver for the entertainment
industry (across the country)

1,500

As the proportion of working age population in total

population increases, GDP is expected to grow higher

Per capita income is expected to expand at a CAGR of

11.4* per cent for the period 2013-19

35%
30%
25%
20%
15%
10%
5%
0%
-5%

1,000
500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015F
2016F
2017F
2018F
2019F

Incomes have risen at a brisk pace in India and will continue

rising given the countrys strong economic growth
prospects. Nominal per capita income is estimated (IMF) to
have recorded a CAGR of 11.9* per cent over 200013

GDP Per Capita ( current prices) (USD) - LHS

Annual Growth Rate - RHS

Source: IMF WEO April 2014, Aranca Research

Note: * In INR terms

Apart from the impact of rising incomes, widening of the

consumer base will also be aided by expansion of the
middle class, increasing urbanisation, and changing
lifestyles
The entertainment industry will also benefit from continued
rise in the propensity to spend among individuals; empirical
evidence points to the fact that decreasing dependency ratio
leads to higher discretionary spending on entertainment

Indian residents shifting from low-income to highincome groups

Million Household, 100%

26
50

15
32

40
29

35
25
12
1
2
2008

3
2020

Globals (>18412.8)
Seekers (3682.5 - 9206.4)
Deprived (<1657)

17
7
2030
Strivers (9206.4-18412.8)
Aspirers (1657-3682.5)

Source: McKinsey Quarterly Report, Aranca Research

Television

Digitisation of the cable distribution sector to attract greater institutional funding, improve
profitability and help players improve their value chain
FDI limit increased from 74 per cent to 100 per cent in cable and DTH satellite platforms in
2013
No restriction on foreign investment for up-linking and downlinking of TV channels other
than news and current affairs

Film

Co-production treaties with various countries such as Italy, Brazil, UK and Germany to
increase the export potential of the film industry
Granted industry status in 2001 for easy access to institutional finance
FDI upto 100 per cent 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

Radio

FDI limit in radio increased to 49 per cent from 26 per cent in 2013
Private operators allowed to own multiple channels in a city, subject to a limit of 40 per
cent 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

Source: Aranca Research,

Notes: FDI Foreign Direct Investment, FII Foreign Institutional Investors

Print

FDI/NRI investment of upto 49 per cent in an Indian firm dealing with publication of
newspaper and periodicals
FDI/NRI investment of upto 49 per cent in publications of Indian editions of foreign
magazines
FDI/NRI investment of upto 49 per cent in publications of scientific and technical
magazines/ specialty journals/ periodicals

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; steps have been taken to block
illegal music websites
Adoption of revenue sharing model by Copyright Board requiring FM radio companies to
share 2.0 per cent of their net advertising revenues with music companies

Animation, Gaming and

VFX (AGV)

100 per cent FDI allowed in the sector through automatic route provided it is in compliance
with Reserve Bank of India 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. For example: Visual
effects community in Bengaluru
Source: PwC India Entertainment and Media Outlook 2011, KPMG Report 2012, Aranca Research

In December 2011, the Indian Government passed The Cable Television Networks (Regulation) Amendment Act for
digitisation of cable television networks by 2014. It is expected that India will be fully digitised by December 2014
The Information and Broadcasting (I&B) Ministry completed the second phase of digitisation, which involved digitising 16
million cable TV houses in 38 cities by April 1, 2013 and aims to complete the third phase of digitisation which includes all
other urban areas (municipal corporations/ municipalities) by September 30, 2014. The rest of the country is likely to be
covered by December 2014 under phase four of digitisation. The digital subscribers are expected to outdo the analog
subscribers by 2013-14
The cable operators under the digitisation regime are legally bound to transmit only digital signals, while the customer can
access the subscribed channels through a set-top box
The number of DTH subscribers in India is expected to increase from 44 million 2013 to 200 million by 2018
USD81.2 million has been allocated for launching a pan-India programme named Digital India and a national rural internet
and technology mission for services in villages and schools, training in IT skills and e-kranti for government service delivery
and governance scheme

Status of digitisation
Phase

Parliamentary approval for

analogue shutdown

Digitisation
including DTH

Gross billing

Phase 1

June -12

98%

Started in Delhi in January 2014;

Mumbai & Kolkata expected to start in Feb-March 2014

Phase II

March-13

90%

Expected to start from April 2014

Phase III

December -14

40-50%

Not Started Yet

Phase IV

December- 14

40-50%

Not Started yet

Source: Digital Dawn, KPMG Report 2014, Aranca Research

Advantages of Digitisation
Higher consumer preference, which lacked in the former Conditional Access System (CAS)
Consumers will be able to select content of their choice as well as indefinitely store and access digital content
The digital platform in films also includes the video-on-demand feature on television
Higher transparency; subscriber declaration level is expected to increase to 100 per cent under post-digitisation regime as
compared to 1520 per cent as declared by Local Cable Operators (LCOs) to Multiple System Operators (MSOs)

Pre-digitisation

Post-digitisation

100

100

6570

3550

05

Multiple System Operators (MSOs)

1520

2530

Broadcaster

1015

3035

Stake-holder revenues share

Consumer ARPU
Local Cable Operators (LCOs)
Distributor

Source: Digital Dawn, KPMG Report 2013, Aranca Research

Presence of analog cable and higher contribution has led to

lower Average Revenue Per User (ARPU) level, which is
around USD3.0 for a digital pay television

Average revenue per user per month (USD)

4.4
4.0

However, with higher scope of introduction of new and

niche channels with digitisation, ARPU levels are expected
to increase
ARPU for DTH subscribers has seen an increase of around
12-15 per cent in 2013
Digital cable on the other hand, has not seen any significant
ARPU increases and is estimated to have increased 5 per
cent. For digital cable, deployment of different channel
packages will be the key driver to raise ARPUs

4.1

3.8
3.7
3.3

3.3

2.9

2013

2014F
Digital Cable

2015F

2016F

DTH

Source: KPMG Report 2014, Aranca Research

Note: F - Forecast

Consolidation will be the major route to grow inorganically for entertainment companies in order to expand their portfolios
and enter into new regions
A few big deals have come about, the most notable ones being Network 18 Media & Investments Limited, Eenadu TV and
Sony-multi screen Media, with a combined investment of 666 million in 2012
In 2013, Publicis made three acquisitions
Dentsu acquired 80 per cent stake in Webchutney, a digital marketing company
News Corp exited its non-core businesses in India by selling its investment in Star News (stake acquired by the ABP Group)
and Hathway Cable & Datacom (stake acquired by Providence Equity Partners)

Source: KPMG Report 2014, Aranca Research

Mergers and Acquisitions (M&A) deals in 2013

Acquirer

Target name

Target sector

Date

Convonix Systems

Digital

March

End to End Marketing Solutions

Advertising

April

Webchutney Studio

Digital

May

Business World Magazine (ABP Group)

Print

September

Maurya TV

TV Broadcast

October

Home Shop 18

TV Broadcast

October

Publicis Groupe

Beehive Communication

Advertising

October

Publicis Groupe

iStrat Software, MarketGate

Digital

December

Publicis Groupe
McCann Worldgroup India
Dentsu Media& Holdings India
Private Investors
Zee Media Corporation
GS Home Shoppibng, Network 18 Media

Source: KPMG Report 2014, Aranca Research

FDI inflows into the entertainment sector between April

2000 and April 2014 rose up to USD3.7 billion

Cumulative FDI inflows into Information and

Broadcasting from April 2000 (USD billion)

By April 2014, the share of FDI in Information and

Broadcasting was 1.7 per cent of total FDI inflows into the
country

3.6

3.7

FY13

FY 14

2.9

Demand growth, supply advantages and policy support are

the key drivers in attracting FDI

1.8

2.2

1.3
0.6

FY 08

FY09

FY10

FY11

FY12

Source: Department of Industrial Policy and Promotion (DIPP),

Aranca Research

Gaming can be classified under four segments Personal Computer Games (PC), Mobile Games, Console Games and
Online Games. The growth is driven by rising younger population, higher disposable incomes, introduction of new gaming
genres, and the increasing number of smartphone and tablet users
The mobile gaming industry in India was estimated at about USD140.3 million in 2013 and is projected to witness a CAGR
of 19.0* per cent (2013-2018)
The PC gaming segment is estimated at USD44.5 million in 2013 and is expected to grow at CAGR of 22.0* per cent to
touch USD112.0 million in 2018
Incentives provided by state governments, for units in SEZ as specified in Union Budget, 2014, to encourage gaming and
animation industry

Opportunities** for Indian gaming firms across the segments value chain
Concept
creation

Pre-production

Development

Post- production
and testing

Final testing

Console

Very strong

Strong

Good

Good

Good

Mobile

Good

Good

Good

Good

Good

PC

Strong

Strong

Good

Good

Good

Online

Strong

Strong

Good

Good

Good

Source: Media and Entertainment in India: Digital Road Ahead by Deloitte, Aranca Research; KPMG Report 2014
Notes: **We have portrayed the intensity of opportunities in each segment based on the extent of Indian players current presence in that segment, * In INR terms

Number of subscribers (million)

The share of digital cable as well as DTH service providers

is expected to increase post-digitisation
DTH subscribers have increased by around 12-15 per cent
in 2013, driven largely by increase in HD channels,
premium channels and value added services
Total subscription for DTH is expected to increase to 75
million subscribers by 2018 from 37 million in 2013

9
8

7
28
5

37

68

68

9
37

44

25

40

9
56

9
70

72

75

19

87

91

60

58

68

55
31

2010

DTH industry revenues will reach USD5.3 billion by 2020.

Revenue growth will be largely driven by increasing
subscriber volumes

10

44

81

Total subscription for Digital is expected to increase to 91

million subscribers by 2018 from 25 million in 2013

2011

2012
Analog

5
5
5
2013 2014F 2015F 2016F 2017F 2018F
Digital

DTH

DD Direct

Source: KPMG Report 2014, Aranca Research

Television

Television industry is worth USD7.1 billion in 2013 and is expected to grow at CAGR of
16.2* per cent for 2013-2018 to reach USD14.4 billion
The television advertising market reported a moderate growth of an estimated 8.9 per cent
in 2013. The revenues generated are USD2.3 billion for the year 2013
Television is projected to garner half of the media and entertainment pie by end of 2015
(as addressable digitisation is expected to cover the entire country by then)

Animation & VFX

The Indian animation industry was worth USD679.3 million in 2013 and is expected to
expand at a CAGR of 15.9* per cent to USD1.3 billion by 2018
Growth in international animation films, especially 3D productions, and the subsequent
work for Indian production houses will help the growth in this segment

Print

The print industry was worth USD4.2 billion in 2013 and with a CAGR of 9.0* per cent for
2013-2018 it is expected to reach USD6.1 billion
Accelerated growth is forecasted in regional print and local news segments

Source: KPMG Report 2014, Aranca Research

Note: * In INR terms

Film

Size of the Indian film industry is expected to touch USD3.6 billion by 2018, up from
USD2.1 billion in 2013 at a CAGR of 11.9* per cent
Increasing digital screens and 3D films are expected to help industry growth
In order to promote India as a location destination for foreign production houses, the
government is setting up a single window clearance system for shooting permissions
To promote joint productions, co-production agreements have been signed with Italy,
Germany, Brazil, UK, France, New Zealand, Poland, Spain and Canada

Radio

Size of the Indian radio industry is expected to reach USD545.6 million by 2018, up from
USD249.8 million in 2013
Phase III of e-auctions for FM radio licenses will provide an impetus to the segment
Radio advertising is another area likely to experience accelerated growth

Music

Size of the music industry is expected to grow to USD289.1 million by 2018, up from
USD164.3 million in 2013
Mobile VAS and arrival of 3G are likely to lead to a surge in paid digital downloads
Phase III radio licensing will also help in increasing music revenues from radio
Source: KPMG Report 2014, Aranca Research
Note: * In INR terms

Disney becomes a
majority share
holder with a stake
of 99.7 per cent

Interactive
Launched IPO as
UTV Software
communications
Ltd

Broadcasting
Ventured into
internet content
creation and
aggregation

Games content

Motion pictures

Started as a
content provider
for Doordarshan

Acquires
Indiagames Ltd,
enters gaming
software and
content

Number one
company in
mobile
gaming

Became worlds
first company to
record over 100
million downloads
on Nokia store

Launched
Hungama TV

Deal with Disney

to dub its content
into Indian
languages

Television content

1985-90

2000

2003

2005

2007

2008

2012

2013

Source: Company Annual Reports, Aranca Research

Enters Film
Production and
Distribution
through SUN
Pictures

Magazine
Acquires
Dinakaran
newspaper, Tamil
Nadus leading
daily

Newspaper

Launches a slew of
other channels in
various South Indian
languages

Radio

Launches three
pay channels and
four ad-free action
movie channels

Launches SUN
Direct to provide
DTH services

Motion pictures
Founded as
Sumangali
Publications

Collaborated
with iTunes,
YouTube

Starts its first FM

Channel
Sumangali FM

Direct to Home
SUN TV is
launched with
daily three hours
of programming

Broadcasting
1985-90

2000

2003

2005

2007

2008

2012

2013

Source: Company website, Aranca Research

Adlabs Imagica, a flagship project of Adlabs Entertainment

Ltd is a 300-acre entertainment theme park located on the
MumbaiPune expressway

Adlabs Imagica

ICICI Ventures invested USD26 million in Adlabs Imagica in

2013

It is India's most elaborate theme park for a total value of

USD294 million
The park features 21 attractions including rides, film shows
and live acts drawn from Indian mythology and Bollywood
cinema
The total footfall is expected to be around 2-3 million per
year
Salient features

Total area - 300 acre

Total cost - USD294 million

Visitor capacity - 10,000 to 15,000 visitors per day

Ticket cost - Weekday (USD23), Weekends (USD28)

Source: Company website, Aranca Research

Dish TV revenues (USD million)

Dish TV is Asia's largest and India's first direct-to-home or

commonly known as DTH company

417.60

Dish TV India Limited, a division of Zee Network Enterprise

(Essel Group Venture) provides DTH satellite television

CAGR: 23.2%

Dish TV ranks 5th on the list of media companies in the

Fortune India 500

314.92

The companys revenue rose at a CAGR of 23.2* per cent

to USD414.57 million in FY14

398.51

414.57

228.76

FY10

FY11

FY12

FY13

FY14

Source: Company website, moneycontrol.com, Aranca Research

Note: *CAGR in INR terms

Indian Motion Picture Producers Association (IMPPA)

"IMPPA HOUSE, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050
Tel: 91-22-26486344/45/1760
Fax: 91-22-26480757
Website: www.indianmotionpictures.com/imppa/index.html

The Film and Television Producers Guild of India

G-1, Morya House, Veera Industrial Estate,
Off Oshiwara Link Road, Andheri (W), Mumbai - 400 053
Tel: 91-22-66910662
Fax: 91-22-66910661
E-mail: guild@filmtvguildindia.org
Website: www.filmtvguildindia.org

Newspapers Association of India (NAI)

A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092
Tel: 91-9971847045, 9810226962
E-mail: contact@naiindia.com
Website: www.naiindia.com

Association of Radio Operators for India (AROI)

304, Competent House, F-14, Connaught Place, New Delhi - 110001
Tel: 91- 124-4385887
e-mail: info@aroi.in
Website: www.aroi.in

The Indian Music Industry (IMI)

Crescent Towers, 7th Floor
B-68, Veera Estate, Off New Link Road, Andheri West, Mumbai - 400 053
Tel: 91-22- 26736301 / 02 / 03
Fax: 91-22-26736304
E-mail: sudhir@indianmi.org
Website: www.indianmi.org

AGV: Animation, Gaming and VFX

CAGR: Compound Annual Growth Rate
DIPP: Department of Industrial Policy and Promotion, Ministry of Commerce and Industry
DTH: Direct to Home
FDI: Foreign Direct Investment

FM: Frequency Modulation

FY: Indian Financial Year (April to March)
So FY10 implies April 2009 to March 2010
GST: Goods and Service Tax
IPO: Initial Public Offering
M&A: Merger and Acquisition
M&E: Media and Entertainment

PPP: Purchasing Power Parity

USD: US Dollar
Conversion rate used: USD1= INR 54.45
VAS: Value Added Services
VFX: Visual Effects

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

Exchange rates (Fiscal Year)

Exchange rates (Calendar Year)

Year

INR equivalent of one USD

Year

INR equivalent of one USD

200405

44.81

2005

43.98

200506

44.14

2006

45.18

200607

45.14

2007

41.34

2008
200708

40.27

43.62

2009

48.42

2010

45.72

200809

46.14

200910

47.42

2011

46.85

201011

45.62

2012

53.46

201112

46.88

2013

58.44

201213

54.31

Q12014

61.58

Q22014

59.74

201314

60.28
Q32014

60.53

Average for the year

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