Media-Entertainment

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Media-Entertainment

SUMMARY

  • INR 220 Billion film industry by 2018.
  • INR 918 Billion in 2013 revenues.
  • 3rd largest TV market in the world.
  • 161 Million television households in 2013.
  • INR 40 Million animation industry.
  • 800 TV channels.

REASONS TO INVEST

  • Total market size of the Indian entertainment industry stood at INR 918 Billion in 2013, growing by 11.8% over 2012.
  • The industry is expected to register a CAGR of 14.2%, reaching INR 1785.8 Billion in 2018.
  • The size of the television industry in India was estimated at INR 417 Billion in 2013, with a projected CAGR of 16% between 2013-18, amounting to an INR 1785.8 Billion industry in 2018.
  • India is the world’s third largest TV market, after China and the USA, with 161 Million TV households.
  • India has a large broadcasting and distribution sector, comprising approximately 796 satellite TV channels, 6000 multi-system operators, around 60,000 local cable operators, 7 DTH operatorsand 4 IPTV service providers.

STATISTICS

  • India has 161 Million television households, 94,067 newspapers, close to 2000 multiplexes and 214 Million internet users, of which 130 Million are mobile internet users.
  • By 2018, digital advertising is projected to have the highest CAGR of 27.7%, while all other sub-sectors are expected to grow at a CAGR between 9% and 18%.
  • Overall, the industry is expected to register a CAGR of 14.2% to touch INR 1785.8 Billion by 2018.

GROWTH DRIVERS

  • Television and AGV (animation, gaming and VFX) segments are expected to lead industry growth, with opportunities in digital technologies as well.
  • TV penetration in India is about 65% and is expected to reach 72% by 2017, the digitisation of cable TV in India, set for four phases, will be completed by the end of 2014, direct-to -home (DTH) subscriptions are growing rapidly, driven by content innovation and product offerings.
  • Growth in the number and spread of multiplexes.
  • Increasing liberalization and tariff relaxation.
  • Measures such as digitisation of cable distribution to improve profitability and ease of institutional finance.
  • Rising incomes and evolving lifestyles, leading 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 to augment demand.

FDI POLICY

Broadcasting Carriage Services:

  • FDI in Teleports, direct-to-home (DTH), cable networks, mobile TV, Headend-in-the-Sky Broadcasting Services are allowed up to 74% with FDI, up to 49% under the Automatic route. FDI beyond 49% (up to 74%) is permitted under the government route.
  • FDI in cable networks is allowed up to 49% under the Automatic route.

Broadcasting Content Services:

  • FDI in FM radio is allowed up to 26% under the government route.
  • FDI uplinking of ‘News and Current Affairs’ TV channels is allowed up to 26% under the government route.
  • FDI uplinking of ‘Non-News and Current Affairs’ TV channels/downlinking of TV channels is allowed upto 100% under the government route.

Print Media:

  • 26% FDI under the government approval route is allowed in the publishing of newspapers and periodicals dealing with news and current affairs. 26% FDI under the government approval route is allowed in the publication of Indian editions of foreign magazines dealing with news and current affairs. 100% FDI under the government approval route is allowed in publishing/printing of scientific and technical magazines/speciality journals/periodicals, publication of facsimile editions of foreign newspapers.

 

Disclaimer: Investments are subject to fulfilling security conditions, rules and regulations of the Ministry of Information and Broadcasting and all other relevant legalities.

SECTOR POLICY

  • In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ for digitisation of cable television networks by 2014, cable operators under the digitisation regime are legally bound to transmit only digital signals, while customers can access subscribed channels through a set-top box (STB).
  • In phase I and II, 33 Million STBs have been installed. For phase III and IV it is estimated that around 110 Million STBs will be required.
  • Co-production treaties with various countries such as Italy, Brazil, UK and Germany are to increase the export potential of the film industry.

FINANCIAL SUPPORT

PROVISIONS OF THE 2O14-2O15 UNION BUDGET:

  • INR 1000 Million has been allocated to encourage the growth of community radio stations.
  • INR 5000 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.
  • INR 1000 Million has been allocated for launching a programme to promoting good governance.

STATE INCENTIVES:

  • Available depending upon the number of jobs created, area of investment etc.
  • Animation and gaming: incentives for units in SEZ as specified in the Act.

INVESTMENT OPPORTUNITIES

Television:

  • Television is projected to garner half of the media and entertainment pie by 2015 (as addressable digitisation is expected to cover the entire country by then).
  • Television advertisement revenue is also expected to witness robust growth and increase from INR 125 Billion in 2012 to a projected INR 253 Billion by 2018.
  • India is emerging as the teleport hub of Asia. 86 teleport permissions have been issued by the Ministry of I&B.

Print:

  • The print industry has grown at a CAGR of 8.5% in 2013 to touch INR 243 Billion.
  • Newspapers and niche magazines are likely to drive industry growth.
  • Accelerated growth is forecast in regional print and local news segments.

Films:

  • The size of the Indian film industry is expected to reach INR 219.8 Billion by 2018, up from INR 125.3 Billion in 2013.
  • An increasing number of digital screens and 3D films are expected to help industry growth.
  • To promote joint productions, co-production agreements have been signed with Italy, Germany, Brazil, UK, France, New Zealand, Poland, Spain and Canada.
  • 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.

Radio:

  • The size of the Indian radio industry is expected to reach INR 33.6 Billion by 2018, up from INR 8.4 Billion in 2008.
  • Phase-III of e-auctions for FM radio licenses will provide an impetus to the segment.

Music:

  • The size of the music industry is expected to grow to INR 17.8 Billion by 2018, growing at a CAGR of 13.2% over the period 2013-18.
  • Mobile VAS and the arrival of 3G is likely to lead to a surge in paid digital downloads.
  • Phase-III radio licensing will also help in increasing music revenues from radio.

Animation & VFX:

  • The Indian animation industry was worth INR 39.7 Million in 2013 andis expected to expand at a CAGR of 15.9% reaching INR 82.9 Billion by 2018.
  • Growth in international animation films, especially 3D productions and the subsequent impetus for Indian production houses will further help growth in this segment.

FOREIGN INVESTORS

  • Walt Disney (USA)
  • NBC Universal (USA)
  • Ogilvy and Mather (USA)
  • Blackstone (USA)
  • Interpublic Group (UK)
  • Bloomberg (USA)
  • News Corp (USA)
  • Sony (Japan)
  • Leo Burnett (USA)
  • BBC (UK)

AGENCIES

Media-Entertainment

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