MEDIA AND ENTERTAINMENT

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SUMMARY
  • INR 204 Billion film industry by 2019.
  • INR 1,026 Billion in 2014 revenues.
  • Second largest TV market in the world.
  • 168 Million television households in 2014.
  • INR 45 Million animation industry.
  • 800 TV channels.
REASONS TO INVEST
  • Total market size of the Indian entertainment industry stood at INR 1,026 Billion in 2014, growing by 14.2% over 2013.
  • The industry is expected to register a CAGR of 13.9%, reaching INR 1,964 Billion in 2019.
  • The size of the television industry in India was estimated at INR 475 Billion in 2014, with a projected CAGR of 15.5% to reach INR 975 Billion in 2019.
  • India is the world’s second largest TV market, after China, with 168 Million TV households.
  • India has a large broadcasting and distribution sector, comprising approximately 7800 satellite TV channels, 6000 multi-system operators, around 60,000 local cable operators, 7 DTH operators and few IPTV service providers.
STATISTICS
  • India has 168 Million television households, 99,7000 newspapers, close to 2,000 multiplexes and close to 300 Million Internet users – second largest base after China, and is expected to reach out to 640 million by 2019.
  • By 2019, digital advertising is projected to have the highest CAGR of 30.2%, while all other sub-sectors are expected to grow at a CAGR between 8% and 18%.
  • Overall, the industry is expected to register a CAGR of 13.9% to touch INR 1,964 Billion by 2019.
GROWTH DRIVERS
  • Television and AGV (animation, gaming and VFX) segments are expected to lead industry growth, with opportunities in digital technologies as well.
  • TV penetration in India is about 61% and is expected to reach 72% by 2017, the digitisation of cable TV in India is in progress, direct-to-home (DTH) subscriptions are growing rapidly, driven by content innovation and product offerings.
  • Growth in the number and spread of multiplexes.
  • Increasing liberalisation and tariff relaxation.
  • Measures such as digitisation of cable distribution to enable viewer’s choice and greater growth.
  • Rising incomes and evolving lifestyles, leading 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 to augment demand.
FDI POLICY

Broadcasting Carriage Services:

  • Foreign Direct Investment (FDI) in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV, Headend-in-the-Sky Broadcasting Services are allowed up to 74% with FDI, up to 49% under the Automatic route. FDI beyond 49% (up to 74%) is permitted under the government route.
  • FDI in local cable networks and MSO in non-DAS areas is allowed up to 49% under the Automatic route.

Broadcasting Content Services:

  • FDI in FM radio is allowed up to 26% under the government route.
  • FDI uplinking of ‘News and Current Affairs’ TV channels is allowed up to 26% under the government route.
  • FDI uplinking of ‘Non-News and Current Affairs’ TV channels/downlinking of TV channels is allowed up to 100% under the government route.

Print Media:

  • 26% FDI under the government approval route is allowed in the publishing of newspapers and periodicals dealing with news and current affairs.
  • 26% FDI under the government approval route is allowed in the publication of Indian editions of foreign magazines dealing with news and current affairs.
  • 100% FDI under the government approval route is allowed in publishing/printing of scientific and technical magazines/speciality journals/periodicals.
  • 26% FDI under the Government approval route is allowed in publication of facsimile editions of foreign newspapers. However, foreign investment up to 100% is allowed in case of foreign publishing houses bringing out facsimile editions of their own newspapers through wholly owned subsidiary.
Disclaimer: Investments are subject to fulfilling security conditions, rules and regulations of the Ministry of Information and Broadcasting and all other relevant legalities
SECTOR POLICY
  • In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ for digitisation of cable television networks by 2014, cable operators under the digitisation regime are legally bound to transmit only digital signals, while customers can access subscribed channels through a set-top box (STB).
  • In phase I and II, 33 Million STBs have been installed. For phase III and IV it is estimated that around 110 Million STBs will be required.
  • Co-production treaties with various countries such as Italy, Brazil, UK and Germany are to increase the export potential of the film industry.
FINANCIAL SUPPORT

PROVISIONS OF THE 2015-2016 UNION BUDGET:

  • INR 1000 Million has been allocated to encourage the growth of community radio stations.
  • INR 5000 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.
  • INR 1000 Million has been allocated for launching a programme to promoting good governance.
  • Basic custom duty on digital still image video camera with certain specification reduced to nil.
  • Service-tax to be levied on service provided by way of access to amusement facility, entertainment events or concerts, pageants, non-recognised sporting events etc.

State Incentives

  • Available depending upon the number of jobs created, area of investment etc.
  • Animation and gaming: incentives for units in SEZ as specified in the Act.
INVESTMENT OPPORTUNITIES

Television:

  • Television is projected to garner half of the media and entertainment pie by 2015 (as addressable digitisation is expected to cover the entire country by then).
  • Television advertisement revenue is also expected to witness robust growth and increase from INR 155 Billion in 2014 to a projected INR 299 Billion by 2019.
  • India is emerging as the teleport hub of Asia. 86 teleport permissions have been issued by the Ministry of I&B.

Print:

  • The print industry has grown from INR 176.4 Billion in 2014 to reach INR 280 Billion in 2019 at a CAGR of 9.7%.
  • Newspapers and niche magazines are likely to drive industry growth.
  • Accelerated growth is forecast in regional print and local news segments.

Films:

  • The size of the Indian film industry is expected to reach INR 204 Billion by 2019, up from INR 126.4 Billion in 2014.
  • An increasing number of digital screens and 3D films are expected to help industry growth.
  • To promote joint productions, co-production agreements have been signed with Italy, Germany, Brazil, UK, France, New Zealand, Poland, Spain, Canada, China and Korea. Agreement with Australia is in the pipeline.
  • In order to promote India as a location destination for foreign production houses, the government is setting up a film facilitation unit with the help of National Film Development Corporation for facilitation of film shooting in India.

Radio:

  • The size of the Indian radio industry was INR 17.2 Billion in 2014 that grew at a CAGR of 14.5% from INR 10 Billion in 2010.
  • The radio industry is expected to grow at a CAGR of 18.1% to reach to INR 39.5 Billion by 2019.
  • Phase-III of e-auctions for FM radio licenses will provide an impetus to the segment.

Music:

  • The size of the music industry is estimated at INR 9.8 Billion in 2014 and is expected to at a CAGR of 14% over the period 2014-19.
  • Mobile VAS and the arrival of 3G is likely to lead to a surge in paid digital downloads.
  • Phase-III radio licensing will also help in increasing music revenues from radio.

Animation & VFX:

  • The Indian animation industry was worth INR 45 Billion in 2014 and is expected to expand at a CAGR of 16.3% reaching INR 95.5 Billion by 2019.
  • Growth in international animation films, especially 3D productions and the subsequent impetus for Indian production houses will further help growth in this segment.
FOREIGN INVESTORS
  • Walt Disney (USA)
  • NBC Universal (USA)
  • Ogilvy and Mather (USA)
  • Blackstone (USA)
  • Interpublic Group (UK)
  • Bloomberg (USA)
  • News Corp (USA)
  • Sony (Japan)
  • Leo Burnett (USA)
  • BBC (UK)
AGENCIES
ACHIEVEMENT REPORT
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