The Indian media and entertainment industry is the third largest in the world, generating around $19 billion in revenue annually. Television is the largest segment, holding around 45% of the market. Other major segments include print, films, radio, music, and digital advertising. All segments have seen strong growth rates over the past few years and total industry revenues are expected to grow at a 13% CAGR to cross $1.9 trillion by 2020. However, the industry faces challenges from issues like piracy, rising costs, and adapting to new digital platforms and technologies.
2. INDUSTRY OVERVIEW 1
TV
Print
Films
Radio
3rd Largest
TV Market
Strong
broadcasting
market
Rising no
of
subscriber
Fast
growing
animation
industry
Growth in
Film
Industry
Launch of
“Digital
India”
Revenue
to cross Rs
1.9Tn by
2020 –
CAGR 13%
3. SEGMENTS OF INDIAN ENTERTAINMENT INDUSTRY
45%
27%
14%
2%
1%
2% 4%
2% 3%
Size of major segments in 2013
TV Print Films
Radio Music Out of Home
Animation & VFX Gaming Digital advertising
49%
21%
12%
2%
1%
2%
5%
2%
6%
Size of major segments in 2018E
SOURCE : IBEF
2
4. NUMBERS SAYS IT ALL !!! 3
17 Billion 200 Billion 127 BillionSIZE 2013 APPROX 422 Billion
PROFITABILITY
5 yr CAGR
14% 10% 10%16%
6. 5TELEVISION
Value Chain
Content Providers
Broadcasters
Multi System Cable
Operators
Local Cable
Operators
793
Registered
187 pay
channels
155 million
households
Subscriber
Direct To Home [DTH]
Commissioned & Sponsored Programmes
Terrestrial & Satellite Broadcasting
Ad Revenue &
Subscription
Revenue
Expected
Growth
11-13%
8. RADIO& MUSIC
Privatization
FM
Phase 1 -99
Phase 2 -05
Phase 3 -08
1935
AIR
Over 240
Private FM
radio
stations
Cost
effective,
Low Content
Cost
Hindi music
dominating
the music
industry
Piracy
Issues
Impact of
Digital
Technology
Changing
business
models to
face new
reality
7
17. current trends
Animation , VFX, Post-Production
2010-14 Animation CAGR 7%
2010-14 VFX CAGR 26%
Disney, Viacom 18, Turner, Sun
Innovative branding campaigns
Out Of Home Advertising
2014 - CAGR 14%
CAGR - 9.8% till 2019
Elections, E-Commerce
INR 22Bn Spent in 2014
Live Events
2014 - CAGR 13%
Increasing propensity of Gov.
Co’s trying out for new avenues
14
MICE, Event IP,
Entertainment Zones
18. Key challenges 15
Political Issues
Piracy
Content Quality
Innovations Increased penetration
of digital platforms
Measurability
Rising Costs
Piracy
Lack of a robust measurement
standard
Reskilling of talent
Competition
Dominance of AIR
•With 161 million television households in 2013, India stood as the third largest television market with USD15.7 Billion revenue in 2013
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
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