Media &

Entertainment
Contents
Introduction

 Scope and growth

 Market overview
 Government regulations
Introduction
• The entertainment industry
consists of a large number of sub-
industries devoted to entertainment.

• However, the term is often used in

the mass media to describe the
mass media companies that control
the distribution and manufacture of
mass media entertainment.

• In the popular parlance, the term

show biz in particular connects the
commercially popular performing
arts, especially musical theatre,
vaudeville, comedy, film, and music.
 Traditional live
entertainment industry
• Circus
• Drama
• Musical theatre
• Concerts
• Magic
• Sports
• Comedy
Exhibition entertainment
• Amusement park
• Funfairs
• Museum
• Busking
• Wax museum
Present day mass media
industry
• Film
– Film studios
– Movie theatre

• Broadcasting
– Television
– Radio

• Music industry

• Fashion industry

• Discotheque
Electronic entertainment
• Video games
• SMS content
 Major Constituents
Breakup of Indian Media &
Entertainment Industry
Outdoor Advertising
2.5%

Live Entertainment Internet Advertising

0.3%
2%

Television
Print 41.9%
Media
30.9

Radio
0.8%
Films Music
19.3% 2.0%
Key Drivers of the Indian Media
and Entertainment Industry

Regulation

Content Consumerism

Key
Drivers

Advertising
Pricing spend

Technology
• Enabling regulations related
to broadcasting, print and
radio by the Government,

• Development of content for

rich viewers,

• Pricing remains a key driver,

whether it is for cable
subscription, film tickets or
newspaper prices,
•Increased consumerism
and increased
advertisement spend by
marketers fueling further
growth,

•Use of technology for

special effects, animation
and other creative work
leading to better quality of
media products.
 Indian Television Industry -
Wholesome entertainment

5 00
0 427

4 00
0 327
INR Billion

300 250
203
17 0
200 148

100

0
2005 E 2006 F 2007 F 2008F 2009F 20 10F

r
Years
 Indian Television Industry Revenue
Breakup - 2005

TV Software
5%
TV TV
Subscription
37% 58%
Advertising

E*:Estimate
F*:Forecast
 What do the viewers watch in India?
Genrewise Television Viewership Share in India
Kids Channels
Sports Channels 3%
English Entertainment 4% 1%
2% Music Channels
8%
Hindi Film Channels 39%
Mass Entertainment
5%
News Channels

Regional Channels
38%
•Mass Entertainment
Hindi and regional
language channels
attract almost 80%
of the total
TV viewership in
India
•Niche channels like
News and Sports
gaining ground
 Indian Film Industry -
The Bollywood dreams
Projected size of Indian Television Industry

120
INR Billion

CAGR 18% 153

150 132
97 113
100 79
68
50
0
2005E 2006F 2007F 2008F 2009F 2010F

Years
• Largest number of films
produced in the world~1000
films every year
• More than 3 billion tickets sold
in 2005
• Gross revenues of over USD 1.49
bn in 2005
• Expected to reach USD 3.35 bn
by 2010, a CAGR of 18%
• Large scope for growth in
number of screens
• Digitisation of theatres and
growth of multiplexes fueling
further growth
 Screens/ million
population
120

100

20
40
60
80

0
UK

30
Belgium 43

Germany
45

Spain
46

Italy
52

Ireland
53

Denmark
61

France
77

US
117

India
12
Density of Film Theatres - India & Abroad
 Hit or flop -
Breakup of Indian films market
Others
8%
1%
Bengali
15%
Telugu
45%
Hindi

17%
CrossoverHindi

10% 2% 2%
Malayalam Foreign Tamil
• Hindi films account for
almost half of the total
market
• Foreign films, primarily
from Hollywood have a
market share of 2%
• Regional language films
account for the rest of the
market
• Dubbed Hollywood films
a new trend
Indian Music Industry-
Soul searching
Projected size of Indian Music Industry

7.6
7.4 7.4
INR Billion

7.4 7.3
7.2 7.2
7.2
7.0
7.0

6.8
2005E 2006F 2007F 2008F 2009F 2010F

Years
• Unique structure with film
and devotional music
dominating the market
• Non-film albums and
remixed songs gaining
market
• Total revenues close to USD
0.15 bn in 2005
• Expected to reach USD 0.16
bn by 2010, a CAGR of 1%
• Government and industry
taking firm action to reduce
piracy of all forms
 Genrewise Music Sales in India -
2005

7% New Film Music

8%
Popular Music
10% 40% Others
International
Old Films Music
Devotional
8% Regional Film Music
6%
21%
Indian Radio Industry - Singing
a growth tune
India has over 190 million radio sets
reaching 99% of the population
More than 330 FM Radio licenses
being allotted by the Government
(~240 already allotted)
Move from license fee to revenue
share model to give a further boost
to the industry
New platforms to access radio like
satellite radio, mobile phone radios
and internet radio growing fast
•Revenues in 2005 -
USD 0.06 bn

•Expected revenues
in 2010 - USD 0.26
bn, a CAGR of 32%

•Ad spend on radio

set to increase with
more FM radios
operational
 Projected size of Indian Music Industry

15.0 12.0
INR Billion

CAGR 32% 10.0

10.0 8.0
5.5
5.0 3.0 3.7

0.0
2005E 2006F 2007F 2008F 2009F 2010F

Years

Source: IMaCS Analysis, FICCI - PWC Frames 2006 Report

 Global ad Spend on Radio
20%
Share of total ad

20%

15% 13%
spend

9% Global 8%
7%
10%

5% 1%

0%

India
Lanka

Spain

Australia
USA
Sri
Indian Print Media Industry -
Reader’s choice
• More than 220 million
readers of English and
vernacular language
newspapers and magazines
• English language newspapers
and magazines readership
close to 10% of the total base
• Newspapers account for 90%
of the market,
Magazines~10% market share
• Revenues expected to
grow from USD 2.38 bn
in 2005 to USD 4.37 bn
in 2010
• Subscriptions contribute
57% of the total
revenues, rest by
Advertisement
• Print media, especially
newspapers, attracting a
large number of strategic
overseas investments
 Leading Newspapers in India
Vernacular Readership (Million)
Dainik Jagran 21.2
Dainik Bhaskar 21.0
Eenadu 13.8
Lokmat 10.9
Amar Ujala 10.8
Hindustan 10.4
Daily Thanthi 10.4
Dinakaran 9.6
Rajasthan Patrika 9.4
English
Times of India 7.4
The Hindu 4.1
Hindustan Times 3.9
 Projected size of Indian Music Industry

250
195
1
200 173
1
INR Billion

153
1
135
1
150 121
109
1
100

50

2005E 2006F 2007F 2008F 2009F 20 10F

Year
s
 Government
Regulations & Policy

•Market Overview
•Government regulations &
policy
•Advantage India and business
opportunities
 FDI Regulations for Indian Media &
Entertainment Industry…1

Guidelines for Foreign Direct Investment in the

Indian Media & Entertainment Industry

1. Advertising FDI is permitted up to 100% through

the automatic route

FDI is permitted for the full value

chain like film financing, production,
2. Films distribution, exhibition and marketing
up to 100% through the automatic
route
 (a)FDI up to 100% is permitted in
publishing/printing scientific &
technical magazines, periodicals &
journals
3.Print Media
(b) FDI up to 26% is permitted in
publishing News Papers and
Periodicals dealing in News and
Current Affairs subject to a few
conditions
 FDI Regulations for Indian Media &
Entertainment Industry…2
Guidelines for Foreign Direct Investment in the
Indian Media & Entertainment Industry

4. Broadcasting a)TV Software Production

100% foreign investment allowed
subject to a few conditions

b) Sett3.Print & Mediaing up

hardware facilities, such as uplinking,
HUB, etc.
FDI allowed upto 49% (inclusive of
both FDI and portfolio investment) of
paid up share capital
c) Cable Network
FDI allowed upto 49% (inclusive of both FDI and portfolio
investment) of paid up share capital.

d) Direct-to-Home
Maximum foreign investment of 49% paid up share capital
include

e) Terrestrial Broadcasting FM
Foreign investment is permissible to the extent of 20%
(including portfolio investment, investment by OCB/NRI/PIO
etc.) of the paid up share capital of the company. The
licensee should be a company registered in India under the
Companies Act.

f) Terrestrial TV
No private operator is allowed in terrestrial TV transmission.

g) Establishment and Operation of Satellite

FDI up to 74% is permitted with prior Government approval
 Advantage India and business
opportunities

•Market Overview
•Government regulations & policy
•Advantage India and business
opportunities
 Advantage India
Second fastest growing economy in the world
Favourable FDI policies for all the segments of Media &
Entertainment Industry
Regulatory environment being strengthened for faster
growth of the industry
High quality of creative and technical talent pool
Large untapped potential especially in Television and
Films
ndian consumers willing to spend more on entertainment
Growing middle class with more disposable income
Business opportunities in the Indian
Media & Entertainment Industry…1

Television
• Production/co-production of content
• Broadcasting of TV channels
• Distribution of TV channels through cable and
new delivery platforms like DTH and IPTV
• Technology transfer for digital content creation
• Marketing of TV rights/air times
• Strategic investment in existing companies in
broadcasting, distribution and content
Business opportunities in the Indian
Media & Entertainment Industry…2

Films
• Production/co-production of films
• Processing, distribution and exhibition of
Bollywood films
• Shooting of overseas films in India
• Development, distribution and exhibition of
Hollywood/overseas films
• Training for technical and functional areas of film
making
• Supply of Hardware to film studios
Music
• Creation of content for film and non-film music
• Marketing of film and non-film music
• Strategic investment in local music companies

Print
• Strategic investment in news and non-news
publications
• Tie-ups for providing content to Indian
publications
Radio
•Investment in FM and Satellite
Radio
•Content creation for radio
channels
•Marketing of air times