Entertainment Sector

Submitted by:

Shagun Raghav

Entertainment Sector

Distribution of Entertainment
industry
Revenue

Others
10%

Print Media
13%
Radio
2% Music
1%

Film Industry
29%

Television
45%

Television Industry

Television Industry

Television first came to India in the form of Doordarshan (DD) on Sept 15,
1959

India is the worlds third largest TV market with almost 138 million TV
households next to China and USA

As of 2012, the country has a collection of free and subscription services over
a variety of distribution media, through which there are over 823 channels of
which 184 are pay channels

Average time spent is still low in India

Television Industry(Contd.)

Television distribution is projected to garner a share of 62 per cent in the

television pie by 2015 (as addressable digitisation is expected to cover the
entire country by then)

Television advertisement is also expected to witness robust growth; its share

in the advertising industry is expected to touch 42.5 per cent by 2015 from 41
per cent in 2010

Industry has gone through major technological advances in the recent past,
with features such as IPTV, VOD (Video on demand), Mobile TV and
DVRs(Digital Video Recorders)

Growth of TV Industry
35
30
USD Billion

25
20
15
10
5
0
2006 2007 2008 2009 2010

2011

2012 2013E 2014E 2015E 2016E

Years

KPMG Report 2012

Growth Drivers

Income have been rising at a brisk pace in India and it will continue to do so
given the countrys strong economic growth prospects.

Rising incomes, with its positive impact on the consumer base, will be the key
growth driver for the entertainment industry (across the country).

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.

Policy support aiding sector growth

Digitisation of the cable distribution sector to attract greater institutional

funding, improve profitability and help players improve their value chain.

FDI limit increased from 49 per cent to 74 per cent for broadcast carriage
service providers who upgrade to digital and addressable environments.

No restriction on foreign investment for up-linking and down-linking of TV

channels other than news and current affairs.

TV Value Chain
Content
Creators

Broadcasters

Distributors

End Users

Role In The
TV Value
Chain

Content providers
operating
independently

Content is
distributed through
audio & video
signals

Companies using
various technologies
to make tha content
available

End users get access

to the content

Key Players

UTV, Balaji, Creative

Eye LTD, Sri
Adhikari Brothers

Star, Sony, Colors,

Zee, NDTV

Tata Sky, Big TV,

Bharti Airtel

Consumer

Strength

Major role in the flow of information

Latest technology is used by the Industry, along with that; it offers wide
variety of solutions including some very creative ones

The industry is very sensitive to customers needs and develop solutions

according to the fast changing requirements

Weakness

Full depending on power supply

Remote area can not access

Domination of 4-5 major players is a negative sign thus creating some what
monopolized industry

Opportunities

New entrants

Increasing no. of channels

Change in technology and in consumer wants and needs brings about new
opportunities for growth and for different players to catch a larger share of the
industry

Threats

The influx of DVRs (Digital Video Recorders) into the homes of consumers
has a negative impact on advertising revenues

With primetime viewing and movies turning digital, the threat of piracy and
illegal downloads is more prevalent, which will hinder the industries growth

Lack of quality content

FILM INDUSTRY
The film industry consists of the technological and commercial
institutions of filmmaking: i.e. film production companies, film
studios, cinematography, film production, screenwriting, preproduction, post production, film festivals, distribution; and
actors, film directors and other film personnel.

HISTORY
Raja Harishchandra(1913) was the first silent
feature film made in India.It was made by
Dadasaheb Phalke.
Alam Ara (1931) was the first sound film
made by Ardeshir Irani.
In the late 1950s,Bollywood released its first
color films,however ,the majority of color
films continued to be black and white until
the mid 1960s.

Regional Indian Film Industries

The Indian film industry is

highly regionalized with
the largest language
groups supporting major
regional industries.
The Telugu film industry
produces the largest
number of films every
year in India, with about
245 films produced in
2006.

Bollywood: Hindi Film Industry

Kollywood: Tamil Film Industry
Bengali Film Industry
Sandalwood: Kannada Film Industry
Tollywood: Telugu Film Industry
Marathi film industry
Malayalam film industry

Strength
Bollywood is no more a Made in India brand; Bollywood has
become an international brand having its global presence in
Asia, Africa, Europe, America and Australia.
Bollywood produces more than 1000 films per year and has
more than fourteen million viewers who visit theatres daily to
watch Bollywood movies all over the world.
Bollywood movies compete with Hollywood movies for their
slots in theatres
The volume of Bollywood movies released worldwide has
become twice the number of Hollywood movies
Bollywood gives employment to many lacks of people around
the world
Low budget movies have generated more revenues in box
office hit

Weakness
When referring to Value vs. Volume growth,
Bollywood has more volume of movies released every
year but very few movies get back their return on
investments
Many movies fail to make even a little impact to the
audience as the movie release per month is very high
Repetition of story script and duplication of music
tracks seldom makes people to lose interest for movies
Bollywood movies spoil the rich Indian values and
sentiments and inflict wrong culture in younger
generations mind by influencing western practises and
lifestyle
Small producers cant shell out more money for their
movie promotions and advertisements

Opportunities
Viewers for Bollywood movie are increasing every year
Slumdog Millionaire success which bagged more than $80 million
revenue added new dimensions to Bollywood movies
International brands like LOreal prefer Indian celebrities to be their
brand ambassadors for their global market.
Reliance Big entertainment has signed deals with production
companies of Brad Pitt, George Clooney, Tom Hanks, Nicholas Cage,
and Jim Carrey etc
The overall Indian movie market is expected to grow at a rate of 14%
YOY.
Ficci-KPMG report has mentioned in its report that the revenues
from Media and Entertainment (M&E) would reach INR 1.3 Trillion
by the year 2015.
Marketing in M&E has become very powerful with the help of viral
marketing, for instance Why this Kolaveri was a straight away
success.

Threats
Government and sensor board regulations are
becoming high due to the increase of
adulthood and violence scenes in movies
Pirated CDs and DVDs impose a major threat
for this industry

Movies are watched and shared across internet

Many movies face legal issues and threats from
political parties during their releases

Negative reviews on websites and social media

are major threats

Music Industry

Intro
Music of India is one of the oldest unbroken
musical traditions in the world.
Origins of this system go back to the Vedas
(ancient scripts of the Hindus).

The industry is considered to be an

important constituent of the Indian
Entertainment industry as a whole, rather
than an independent sub-sector.

Intro(contd)
Indian Music Industry has a rich musical
tradition and is capable of generating
sizeable revenue for the country in every
genre of the music industry.

Distribution of Music in India

Revenue

Revenue(contd)
The year 2010 saw structural shift from
physical formats to digital ones.
The year 2011 witnessed a wider range of
viable options for music consumption
through different digital platforms.
The Indian music industry registered a
growth of 5 per cent in 2011 over 2010,
achieving revenues of Rs 9 billion (US$
158.66 million) in the year.

Growth Driver
Digital music acting as a key growth driver
in India and all over the world.
Independent artistes, internet services and
new-age publishers are giving the industry a
new lease of life.
Ringtones and downloading albums from
online stores are generating additional fees
from mobile subscribers and more licensing
revenue for record companies.

Key Players of Music Industry

The major players in the Indian Music Industry in
the film and non-film music categories are:
T-series
Times Music

HMV
Tips
Sony Music

Universal
Virgin

Threats to Music Industry

Major Threats are Piracy, Version
recordings, disc regulations and Inadequate
support from the government.
LOSS OF REVENUES TO

Film Industry RS 2000 Crores + Per Year

Music Industry RS 600 Crores Annually
for the past 3 years

Threats(contd.)
Legitimate market has shrunk by 27% in
unit terms and 38% in value terms over last
2 years.
Internet Piracy also adds up to this problem.

There are about 600 sites that allow

downloading of music from the net for free.
Industry observers estimate the percentage
to rise to 25% unless
stringent measures are taken immediately.

From

Through

HISTORY OF RADIO IN INDIA:

Broadcasting began in India with private radio service in Madras in 1924.
1957 All India Radio was renamed as Akashvani.
From 6 radio stations in 1957 AIRs network expanded to 146 AM stations.
Commercial Radio services in India started in 1967 by Vividh Bharati.
For more than 4 decades, the Government of India did not permit private
radio stations to broadcast.
1993, the Government allowed private FM operators to 'buy' blocks on
All India Radio
1998 the Government decided not to renew contracts of private FM
operators. Not surprisingly, the advertising revenue fell by 50% within a
year!
In 2000, the Government auctioned licenses for private FM channels to
boost the revenue.

Growth of the radio industry

With the implementation of Phase III, the

radio industry is expected to grow from
INR14 bn to INR23 bn in three years.

Thank You