1 Month agoIndia’s dynamic media and entertainment sector is witnessing tremendous growth in visual effects, music, gaming, digital advertising and radio segments.
By 2019, the combined market size of Indian media and entertainment industry will be USD 30 billion, according to the joint report titled ‘Indian Media and Entertainment Industry 2015’.
India’s dynamic media and entertainment sector is also witnessing tremendous growth in visual effects, music, gaming, digital advertising and radio segments. The growth will be driven by the content in more than 30 regional languages, digitisation and higher penetration of multimedia devices.
The Indian media and entertainment industry will grow at the CAGR of 13.9% by 2019.India has a booming print, television and digital media industries. The digital advertising segment alone reported an explosive growth of 44.5% in 2014 with e-commerce websites contributing to the maximum spending.
Foreign Direct Investment (FDI) in Media and Entertainment Sector
The government has liberalised FDI norms for various segments of Media and Entertainment industry. 100% FDI is permitted under automatic route in teleports, Direct to Home (DTH), Mobile TV, Cable networks and headend-in-the-sky broadcasting service (HITS).
For non-news and current affairs channels, 100% FDI is permitted via automatic route. Apart from granting industry status to the film production for better access to financing, the government has permitted 100% FDI under automatic route in the industry.
The broadcast industry in India already has around 800 satellite television channels, 242 FM channels and 100 operational community radios. To strengthen the broadcasting ecosystem in the country, the Ministry of Information and Broadcasting (I&B) has launched various phases of digitisation across the country.
The cable TV service digitisation program began with Delhi, Mumbai, Kolkata and Chennai in 2012. The phase-IV of the program will be completed in December 2016 to achieve digitisation of cable TV services across India. With digitisation, the consumers can take advantage of a large number of TV channels, better picture quality, reliable connectivity and clear sound. The consumers can also choose channels as per their budget and choice.
India had 168 million TV households in 2014, which makes it the third largest television market in the world. The number of TV households will reach to 196 million by 2019 along with 175 million Cable & Satellite (C&S) subscriber base, indicating the 90% penetration in TV households. The print media market is projected to reach USD 5.9 billion by 2019 with Compound Annual Growth Rate (CAGR) of 8%.
Animation and Visual Effects (VFX)
Animation, Visual Effects (VFX) and Production segment is the newly emerging area in India which offers opportunities in both domestic and foreign markets. Indian VFX industry is already known for its top quality work and cost efficiency. Indian professionals did VFX for six out of ten Oscar nominations in 2014. In the period of 2010- 2014, the industry had CAGR of 17%. It has the market size of USD 670 million. The government of India has also acknowledged the potential of the industry. It plans to establish the National Centre of Excellence in Animation, Gaming and Visual Effects in Mumbai.
According to Registrar of Newspapers in India (RNI), the country had105,443 registered publications in March 2015.The print industry is expected to grow rapidly in future as literacy rates and disposable incomes growth in India. Print media growth will be driven by tier II and tier III. The print media segment is projected to grow at CAGR of 8% till 2019.
In 2015, India produced 1827 digital feature films, according to the report by the Central Board for Film Certification (CBFC). India maintained its position as a top film producer. The CAGR of 10% in film industry till 2019 will be driven by tier II and tier III cities of India. The digitisation has helped film industry for the simultaneous release. It is also stimulating demand for foreign and regional films. To promote India as a filming destination, the I&B ministry has set up Film Facilitation Office (FFO). FFO will provide single window clearance and necessary assistance to producers.
New initiatives and Vision for the future
Digital India and Media sector
The government of India launched ‘Digital India’ with an aim to transform the country into a digital empowered society and knowledge economy. With 27.5 million shipments in the second quarter of 2016, India is the world’s fastest growing smartphone market, according to the data by International Data Corporation (IDC).It is also the world’s second largest smartphone market with 220 million unique smartphone users.
The high smartphone penetration will help Digital India and media segments to grow. The Digital India campaign will strengthen the industries such as video streaming, online music services and gaming in India by increasing the internet penetration. The World Bank and the International Telecommunication Union’s data indicate that 26% of the population has access to the internet in India with number of internet users likely to cross 500 million by end of 2016. The launch of video streaming services such as Netflix, Hotstar and Voot shows the high growth potential of digital entertainment services in India.
“The Make in India, Skill India and Digital India campaigns are clearly positive signals of the new transformation including GST which is expected to be a game-changer for the sector,” Minister of Information and Broadcasting M Venkaiah Naidu said at the 5thCII Big Picture Summit.
I&B Ministry is working on to transform India into a global hub of Media and Entertainment industry by improving the ease of doing business in the sector. Other government initiatives such as National Communication Policy will further compliment the growth of the sector.