entertainment report march 2015

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

• 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

Fast growing animation

industry

• 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

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

Note: * in INR terms

exceptional growth in

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

Growing demand

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

Robust demand

• 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

Attractive opportunities

• Industry is set to expand at a CAGR of 15.2 per cent over 2012–17, one of the highest rates globally

• Television and AGV segments expected to lead industry growth; opportunities in digital technologies as well

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

Increasing

investments

• Higher FDI inflows

• Increasing M&A activity

• More big-ticket deals such as Walt Disney- UTV, Sony-ETV and Zee- Star

• Entry of big players across all segment of industry

2013

Market

Size:

USD15.7

billion

2018E

Market

Size:

USD29.0

billion

Advantage

India

Source: KPMG Report 2013, Aranca Research

Note: VFX - Visual Effects

Entertainment

Television

Gaming

Animation & VFX

Out of Home (OOH)

Music Digital

Advertising

Radio

Films

Print

Market size (USD billion)


Notes: F - Forecast, CAGR - Compound Annual Growth Rate,

* in INR terms

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

registered a growth of 11.8 per cent over 2012 and touched

USD15.7 billion

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

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

12.6 12.4 14.3

15.5 15.1 15.7 16.9

19.5

22.6

25.7

29.0

-5%

0%

5%

10%

15%

20%

10

15

20

25

30

200

8

200

9

201

0

201

1

201

2

201

3

201

4F

201

5F

201

6F

201

7F

201

8F

Size (USD billion) Growth (RHS)

Size of major industry segments (2013)


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 (2018)

45%

27%

14%

2% 1%

2% 4%

2% 3%

Television

Print

Films

Radio

Music

Out of Home

Animation and VFX

Gaming

Digital Advertising

50%

21%

12%

2% 1%

2% 5%

2% 6% Television

Print

Films

Radio

Music

Out of Home

Animation & VFX

Gaming

Digital Advertising

Growth of television industry (in 2011)

Source: KPMG Report 2014 & 2013, Aranca Research

Note: F - Forecast

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

Television’s revenue segments

2.1%

3.6%

10.6%

14.4%

15.8%

22.5%

United States

UnitedKingdom

China

Russia

India

Brazil

33% 29%

67% 71%

2013 2018F

TV advertising Subscription revenues

Industry size of emerging segments (USD million)


Notes: VFX- Visual Effects; F - Forecast,

*In INR terms

Radio, animation & VFX, gaming and digital advertising are

also emerging as fast growing segments

During 2013-2018, these segments are expected to

increase at a CAGR of:

Digital advertising (27.7*per cent)

Gaming (16.2* per cent)

Radio (18.1* per cent)

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

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4F

201

5F

201

6F

201

7F

201

8F

Radio Animation and VFX

Gaming Digital Advertising

Advertising revenue forecast


Notes: OOH - Out Of Home, 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 share (2013)

5.4 6.2 6.7

11.3

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2

4

6

8

10

12

201

2

201

3

201

4F

201

8F

Total revenue - (USD billion) Growth (%) - RHS

45%

37%

8%

5% 4%

Print

Television

Digital Advertising

Out of Home

Radio

Source: KPMG Report 2014,

Economic Times, Aranca Research

Viewership in regional channels in 2013 Regional Entertainment channels comprising mostly of

regional GECs (General Entertainment Channels), regional

movies and regional music

It accounted for 23 per cent of the total television viewership

share in 2013

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

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

27%

24%

14%

12%

11%

6%

3%

1% 1%

1% Tamil

Telugu

Marathi

Kannada

Bengali

Malayalam

Others

Oriya

Gujarati

Bhojpuri

Source: Company websites, Business Week, KPMG Report 2012, Aranca Research

Note: M&E - Media and Entertainment

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

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

Animation, Gaming and

VFX (AGV)

• 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

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

Source: KPMG Report 2014, Press Information Bureau,

Economic Times, Aranca Research

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

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

Source: KPMG Report 2014, Economic Times, Aranca Research

Digital revenues for the music industry (2013)

53%

21%

15%

11%

Digital

Physical

Radio and TV

Public preformance

Source: 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 Substitute Products

Bargaining Power of Suppliers Bargaining Power of Customers

• High sunk costs are involved

• High capital requirements

• Access to distribution is difficult

• The number of suppliers is very

high which leads to the low

bargaining power with them

• Increasing number of content

providers

• Increased globalisation

• Consumers loyalty towards one

channel is less, as variety of

alternative sources of

entertainment is available

• Film industry, print media and

internet

• Significant sporting events like

World Cup,T20,etc and other

cultural events Competitive

Rivalry

(Medium)

Threat of New

Entrants

(Low)

Substitute

Products

(Low)

Bargaining

Power of

Customers

(Medium)

Bargaining

Power of

Suppliers

(Low)


• 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

Viewership in regional

entertainment

Marketing strategies

Television: a common

medium

Audience: the ultimate

consumer


Growing demand

Growing demand

Higher real

incomes and

changing

lifestyles

Falling prices,

increasing

penetration

Growing young

user base with

high access to

technology

Policy support Strong

government

support

Policy support

Policy sops, favourable FDI

climate

Policies to enhance growing

segments like animations and

gaming

Increasing

liberalisation,

tariff relaxation

Innovation

Expanding

production and

distribution

facilities in India

Use of modern

technology

Providing

support to global

projects from

India

Resulting

Increasing

investments

Inflow of FDI in

sector

Increasing

domestic

investment

Expansion by

existing big

companies in the

sector

Driving Inviting

Rising per-capita income in India (USD)

Source: IMF WEO April 2014, Aranca Research

Note: * In INR terms

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

rising given the country’s strong economic growth

prospects. Nominal per capita income is estimated (IMF) to

have recorded a CAGR of 11.9* per cent over 2000–13

Rising incomes, with its positive impact on the consumer

base, will be the key growth driver for the entertainment

industry (across the country)

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

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0

500

1,000

1,500

2,000

2,500

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5F

201

6F

201

7F

201

8F

201

9F

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

Annual Growth Rate - RHS

Indian residents shifting from low-income to high-

income groups

Source: McKinsey Quarterly Report, Aranca Research

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

1 3 7 2 6

17 12

25

29 35

40

32 50

26 15

2008 2020 2030

Globals (>18412.8) Strivers (9206.4-18412.8)

Seekers (3682.5 - 9206.4) Aspirers (1657-3682.5)

Deprived (<1657)

Million Household, 100%

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

Source: Digital Dawn, KPMG Report 2014, 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

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

Status of digitisation

Source: Digital Dawn, KPMG Report 2013, 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 15–20 per cent as declared by Local Cable Operators (LCOs) to Multiple System Operators (MSOs)

Stake-holder revenues share Pre-digitisation Post-digitisation

Consumer ARPU 100 100

Local Cable Operators (LCOs) 65–70 35–50

Distributor 5 0–5

Multiple System Operators (MSOs) 15–20 25–30

Broadcaster 10–15 30–35

2.9

3.3

3.8

4.1

3.3

3.7

4.0

4.4

2013 2014F 2015F 2016F

Digital Cable DTH

Average revenue per user per month (USD)


Note: F - Forecast

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

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


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)


Mergers and Acquisitions (M&A) deals in 2013

Acquirer Target name Target sector Date

Publicis Groupe Convonix Systems Digital March

McCann Worldgroup India End to End Marketing Solutions Advertising April

Dentsu Media& Holdings India Webchutney Studio Digital May

Private Investors Business World Magazine (ABP Group) Print September

Zee Media Corporation Maurya TV TV Broadcast October

GS Home Shoppibng, Network 18 Media Home Shop 18 TV Broadcast October

Publicis Groupe Beehive Communication Advertising October

Publicis Groupe iStrat Software, MarketGate Digital December

Cumulative FDI inflows into Information and

Broadcasting from April 2000 (USD billion)

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

Aranca Research

FDI inflows into the entertainment sector between April

2000 and April 2014 rose up to USD3.7 billion

By April 2014, the share of FDI in ‘Information and

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

country

Demand growth, supply advantages and policy support are

the key drivers in attracting FDI

0.6

1.3

1.8 2.2

2.9

3.6 3.7

FY 08 FY09 FY10 FY11 FY12 FY13 FY 14

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

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 segment’s 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

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

Total subscription for Digital is expected to increase to 91

million subscribers by 2018 from 25 million in 2013

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

Revenue growth will be largely driven by increasing

subscriber volumes

68 68 58 68 55

31 5 5 5

5 6 19 25 40

60

81 87 91

28 37 44

37 44 56 70 72 75

7 8

9 9

9 9

9 9

10

2010 2011 2012 2013 2014F 2015F 2016F 2017F 2018F

Analog Digital DTH DD Direct


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



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: Company Annual Reports, Aranca Research

Television content

Motion pictures

Games content

Broadcasting

Started as a

content provider

for Doordarshan

Ventured into

internet content

creation and

aggregation

Launched IPO as

UTV Software

communications

Ltd

Launched

Hungama TV

Disney becomes a

majority share

holder with a stake

of 99.7 per cent

Deal with Disney

to dub its content

into Indian

languages

Acquires

Indiagames Ltd,

enters gaming

software and

content

Became world’s

first company to

record over 100

million downloads

on Nokia store

Interactive Number one

company in

mobile

gaming

1985-90 2000 2003 2005 2007 2008 2012 2013

Source: Company website, Aranca Research

‘SUN TV’ is

launched with

daily three hours

of programming

Launches SUN

Direct to provide

DTH services

Launches three

pay channels and

four ad-free action

movie channels

Collaborated

with iTunes,

YouTube

Starts its first FM

Channel

‘Sumangali FM’ Direct to Home

Motion pictures

Radio

Newspaper

Magazine

Broadcasting

Founded as

Sumangali

Publications

Launches a slew of

other channels in

various South Indian

languages

Acquires

Dinakaran

newspaper, Tamil

Nadu’s leading

daily

Enters Film

Production and

Distribution

through ‘SUN

Pictures’

1985-90 2000 2003 2005 2007 2008 2012 2013

Adlabs Imagica

Source: Company website, Aranca Research

Adlabs Imagica, a flagship project of Adlabs Entertainment

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

Mumbai–Pune expressway

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)

228.76

314.92

417.60 398.51 414.57

FY10 FY11 FY12 FY13 FY14

Dish TV revenues (USD million)

Source: Company website, moneycontrol.com, Aranca Research

Note: *CAGR in INR terms

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

commonly known as DTH company

Dish TV India Limited, a division of Zee Network Enterprise

(Essel Group Venture) provides DTH satellite television

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

Fortune India 500

The company’s revenue rose at a CAGR of 23.2* per cent

to USD414.57 million in FY14

CAGR: 23.2%

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: [email protected]

Website: www.filmtvguildindia.org

Newspapers Association of India (NAI)

A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092

Tel: 91-9971847045, 9810226962


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: [email protected]

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


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

Average for the year

Year INR equivalent of one USD

2004–05 44.81

2005–06 44.14

2006–07 45.14

2007–08 40.27

2008–09 46.14

2009–10 47.42

2010–11 45.62

2011–12 46.88

2012–13 54.31

2013–14 60.28

Exchange rates (Fiscal Year)

Year INR equivalent of one USD

2005 43.98

2006 45.18

2007 41.34

2008 43.62

2009 48.42

2010 45.72

2011 46.85

2012 53.46

2013 58.44

Q12014 61.58

Q22014 59.74

Q32014 60.53

Exchange rates (Calendar Year)

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entertainment report march 2015

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