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A Report on
MEDIA AND ENETERTAIMENT
INDUSTRY


By



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RAHUL SOMAN | 1226113143
Under the Guidance of
Dr. Shahazadi Begum Shaik



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Executive Summary
he Media and entertainment (M&E) industry in India is likely to touch Rs 43,600 crore
by 2016-17 from Rs 23,900 crore in 2012-13. The south Indian market is dominated
by television (56%), followed by print (28%) and films (11%).
Sectors such as new media and radio, though smaller than other mediums, are expected to
grow at rates higher than the industry average, given their increasing power of engagement.
The medium is expected to grow at a compounded annual growth rate (CAGR) of 20% over
the next four years due to the benefits of digitization being realized. As the industry braces
for exciting times ahead, the sector is projected to grow at a CAGR of 14 percent to reach
US$ 28.1 billion by 2015.
The Indian government's push towards digitalization and cable television by 2014, is
expected to drive DTH and digital cable growth. Also, sophisticated digital production and
postproduction complemented by the willingness of big corporate houses to invest in the film
value chain is influencing the film segment in India.
The rising rate of investments by the private sector and foreign media and entertainment
(M&E) majors have improved India's entertainment infrastructure to a great extent. As per
the recent report by Price water house Coopers (PwC)

INTRODUCTION
ndia's media and entertainment (M&E) industry registered an overall growth of 12.6 per
cent, from Rs 728 billion (US$ 11.74 billion) in 2011 to Rs 821 billion (US$ 13.24
billion) in 2012, according to a joint report by the Federation of Indian Chambers of
Commerce and Industry (FICCI) and KPMG.
India has a population of over 1.2 billion. The sheer numbers give the M&E industry in
the country a tremendous opportunity for growth. Some time back, the thought of reaching
and engaging with such a vast and diverse population seemed improbable. However, today,
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the industry is armed with digital technologies, state-of-the-art mobile devices, penetration of
broadband and digital cinema, and a government that fully backs the sector.
Increasing digitization along with higher internet usage has galvanized the sector over the last
decade. The Internet has almost become the top media for entertainment for most of the
people.



PROSPECTIVE GROWTH
he media and entertainment (M&E) industry in South India is likely to touch Rs
43,600 crore by 2016-17 from Rs 23,900 crore in 2012-13, according to a report by
consulting firm Deloitte Touche Tohmatsu India Pvt. Ltd and industry lobby
Federation of Indian Chambers of Commerce and Industry (FICCI). Growth will be
driven mainly by the popularity of vernacular content in the region and endeavors
by media vehicles to expand their presence. The south Indian market is dominated
by television (56%), followed by print (28%) and films (11%). Sectors such as new media
and radio, though smaller than other mediums, are expected to grow at rates higher than the
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industry average, given their increasing power of engagement. The television market is
estimated at Rs 13,470 crore. The medium is expected to grow at a compounded annual
growth rate (CAGR) of 20% over the next four years due to the benefits of digitization being
realized. At the national level, digitization is changing the way consumers view television,
with broadcasters also seeing an opportunity in creating and showcasing digital content.
While the industry is enabling multi-screen viewership of TV content for viewers who are
constantly on the move, the medium is attracting increasing number of local advertisers.
All media platforms viz. films, TV, print and radio are pushing content on the digital medium
so as to enhance reach. Not only is the digital medium helping industry players reach wider
audiences, it is also enabling them to establish a stronger connect with consumers.
Print is the second largest segment accounting for 28% of the overall market in 2012-13 at Rs
6,680 crore. English-language publishers are launching vernacular dailies as advertising
revenue from vernacular print in the region is estimated to grow at twice the pace of that of
English, largely driven by local advertisers and increasing focus of national advertisers
beyond the bigger cities.
The print industry is also trying to identify monetization opportunities online by developing
mobile apps and mobile optimized websites. With publishers identifying innovative ways to
reach out to their readers, the print industry is also expected to see a steady CAGR of 8% till
2016-17.
The print industry in South India, where four states represent about 30% of the Indian market
in terms of readership, has been able to maintain its vigor through tough times. The
opportunity will lie in tapping the growth potential of the market through expansion and
deeper penetration while simultaneously building additional capabilities to explore alternate
sources of revenue.
South India also churns out more films than Bollywood. Buoyed by an ardent fan following
in the South, film is the third largest segment of the media and entertainment industry at Rs
2,680 crore. The industry is adopting technology across the value chainscouting talent
through social media, adopting newer film making technologies in terms of sound and
filming, distributing and exhibiting films digitally as well as embracing e-ticketing platforms.
The industry is expected to see a healthy CAGR of 12% over the next four years.
(S.Bridget Leena, 2013)



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INVESTMENTS
Indian consumers can now avail International news channel France 24 as a free-to-air channel
on Doordarshan's DTH platform, DD Direct + and Dish TV, after signing new distribution
agreements in the country. The company revealed that the deal will enable it to reach nearly
38 million TV households; from the earlier 7 million. India is the world's fastest growing
market for audio visual (AV) equipment, according to an industry study by InfoComm.
The AV market in India is projected to enjoy a CAGR of 25 per cent and reach US$ 5.1
billion by 2015, driven by expenditures in sectors such as education, infrastructure and
corporate information technology. By 2015, India could become the third largest AV market
in the AsiaPacific region, according to Richard Tan, General Manager of InfoComm's Asia
subsidiary.
ICICI Venture, one of India's biggest equity firms, with assets of around US$ 2 billion, plans
to invest about Rs 150 crore (US$ 24.18 million) in Adlabs Imagica, a theme park operated
by Adlabs Entertainment Limited, on the MumbaiPune expressway. This will be the equity
firm's first investment in this field. Adlabs Imagica started in April, 2013.

It is a Rs 1,600-crore (258.09 million) theme park spread over 300 acres. It accommodates as
many as 20,000 visitors every day and aims to achieve 3 million visitors in its first year of
running. The M&E industry in South India could grow at a CAGR of 16 per cent and touch



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Rs 43,600 crore (US$ 7.04 billion) by 201617 from Rs 23,900 crore (US$ 3.85 billion) in
201213, as per a report by consulting firm Deloitte and FICCI. This growth will be driven
by the popularity of vernacular content and the efforts by media vehicles to expand their
presence.
The South Indian M&E market is led by television (56 per cent), followed by print (28 per
cent) and films (11 per cent). Segments such as new media and radio are also expected to
grow at a better rate than the media average. The online portal for the Bharat Nirman
Campaign has been launched. The portal offers an interactive digital platform for the creative
campaign on several schemes and programmes. The portal allows the user to get information
about the schemes at a single place, apart from providing live integration with social media
platforms such as Facebook, Twitter and YouTube.
(India Brand Equity Foundation, 2013)


IMPACT OF DIGITAL MEDIA

Broadcasters are using digital media to foster greater engagement with young audiences who
are increasingly online and multitasking while watching TV.46 Young audiences are
increasingly looking for an online experience that complements traditional TV programming,
including exclusive video and gaming content and social media that they can consume at their
convenience. Approximately 40% of active Indian internet users consume TV content online,
although that content is mostly limited to short highlights of shows.
Going forward, increased bandwidth availability will allow broadcasters and distributors to
deliver full-length catch-up TV and leverage the interactivity of the online medium to create
greater engagement with audiences.
Digital is enabling virtual audience participation: Broadcasters are using text messages and
interactive voice response (IVR) on mobile phones to increase engagement with audiences
during game and reality TV shows. Around 45 million urban Indians send text messages



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during reality TV shows, which are charged at premium rates, in turn generating the majority
of broadcasters digital revenue.47 Broadcasters have also launched online versions of reality
TV shows targeted at young audiences, some of which allow users to participate in the
televised show.
Mobile TV adoption is expected to grow: The use of streamed mobile TV services is
increasingly popular among Indian audiences, with the recent Cricket World Cup and the
Indian Premier League driving uptake.48 Indians are 64% more likely to consume mobile TV
than the global average.49 The Government has also announced plans to allocate a dedicated
spectrum for mobile TV broadcast services on the Digital Video BroadcastingHandheld
(DVB-H) platform.50 This will allow digital TV broadcast signals to be beamed directly to
DVB-H enabled mobile phones, and is expected to improve video quality and drive further
growth of the medium in India.51
TV content portals: Broadcasters expect increased broadband adoption and the introduction
of 4G to spur the demand for TV content portals and streaming content online. Broadcasters
are planning destination site for users, with multiple content and services and multiple
revenue streams. Broadcasters may also partner to aggregate popular shows and channels and
invest in services that allow catch-up TV, while sharing revenue, risks and costs.
Wireless broadband is expected to drive the reach of digital TV: Mandatory digitization and
erce competition has increased pressure on DTH and digital cable operators to roll out
premium services, including HD, 3D and triple-play. 4G is expected to drive further product
innovation and hasten the introduction of VoD, peer-to-peer gaming and content portability.
Broadband availability could also kick-start the growth of IPTV and web TV, which have
faced limited uptake due to bandwidth constraints. (Ernst & Young, 2011)


INITIATIVES
The Indian government's push towards digitalization and cable television by 2014, is
expected to drive DTH and digital cable growth. Also, sophisticated digital production and
postproduction complemented by the willingness of big corporate houses to invest in the film
value chain is influencing the film segment in India.



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This is further aided by the development of digital distribution and exhibition through the
growth of multiplexes. As part of Friendly Exchanges' between the two Asian giants, India
and China will mutually promote high level media co-operation. There will be specific
projects and proposals under the media domain to mark the commemoration of Friendly
Exchanges' celebrations.
India and China have strong M&E sectors. Sharing experiences can only benefit both
economies. On a similar note, India and Senegal have enhanced their commitment to promote
sustained cultural exchanges by signing Executive Programme for Cultural Cooperation' for
the period 201315.



















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REFERENCE
1. Biswajit Sarkar|2012|
http://www.biswajitsarkar.com/fdi_in_entertainment_media.html
2. Ernst & Young | 2011 |
http://www.ey.com/Publication/vwLUAssets/Entertainment_economy_of_India/$FILE
/Indias-Entertainment-Economy_Oct_%202011_.pdf
3. IBEF (India Brand Equity Foundati on)| December, 2013
http://www.ibef.org/industry/media-entertainment-india.aspx

4. S. Bridget Leena | October, 2013
http://www. li vemint. com/Consumer/VBc0pn9cC97wxNMDfudsSM/Sout h
-India-media-and-entert ainment -industry-to-touch-Rs-43. ht ml

















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Thank You