MEDIA AND ENTERTAINMENT

  • Expand all
SUMMARY
  • The Media & Entertainment (M&E) industry revenues, at a global platform, are expected to rise from US$ 1.8 tn in 2016 to $2.2 trillion in 2021.1
  • M&E industry in India reached US$ 23.9 bn by 2017. The industry witnessed a double-digit growth of around 13% in 2016 and 13.4% in 2017. With its current trajectory, the M&E industry is expected to grow to US$ 33.6 bn by 2021. India has more than 850 TV channels.2
  • The Indian film industry grew by 12.2% during 2017-18, with an industry size of US$ 2.5 bn.3
  • India is the 2nd largest television market in the world.4
REASONS TO INVEST
  • The M&E industry is expected to register a CAGR of 12% during 2018-21, to reach US$ 33.6 bn market size in 2021. Television is expected to retain position as the largest segment, whereas, digital is expected to overtake filmed entertainment in 2019 and print by 2021. The number of television households reached 197 mn in 2018, increasing the Pay-TV penetration to 66%.5
  • India has a large broadcasting and distribution sector, comprising approximately more than 800 satellite TV channels. The distribution network consists of 6,000 multi-system operators, around 60,000 local cable operators, 7 DTH operators and many IPTV service providers.6
  • India had a total of 118,239 registered publications in March 2018, consisting of 17,573 in the news category and 100,666 in periodicals.7
  • The 5G spectrum band is expected to be finalised in 2019 and launched in 2020-21.
STATISTICS
  • Largest industries by market size, within the M&E industry in 2018, include
    • Television (US$ 10.6 bn)
    • Print (US$4.4 bn)
    • Filmed entertainment (US$ 2.5 bn)
    • Digital media (US$ 2.4 bn).
  • India has 197 mn television households, 17,500 newspapers, close to 3,000 screens in multiplexes. It also has around 570 mn internet users which is the second largest base after China and is growing at a rate of 13% annually. Multiplexes have been adding around 200-250 screens annually.
  • With the online population expected to reach 840 mn by 2022, online gaming and digital media are projected to have the highest CAGR of 35.4% and 28% respectively.
  • Overall, the industry is expected to register a CAGR of 12% to reach US$33.6 bn by 2021.8
GROWTH DRIVERS
  • Television and AGV (Animation, Gaming and VFX) segments are expected to lead the industry growth, with opportunities in digital technologies as well.
  • TV penetration in India is about 66% and the market size was estimated at US$ 13.66 bn in 2017. The digital cable (44%), paid DTH (31%) and free DTH (13%) are growing rapidly, driven by content innovation and product offerings.9
  • Growth in the number and spread of multiplexes.
  • Increasing liberalization through FDI and tariff relaxation.
  • Measures such as digitization of cable distribution to enable the viewer’s choice and higher 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 4G and portable devices, to augment demand.
FDI POLICY

BROADCASTING CARRIAGE SERVICES

  • FDI in teleports, DTH, cable networks, Multi-System Operators (MSOs), mobile TV, headend-in-the-sky broadcasting services are allowed up to 100% under the Automatic route. Condition: Infusion of fresh foreign investment, beyond 49% in a company not seeking license/ permission from sectoral Ministry, will require Government approval. For this, the infusion must result in the change in the ownership pattern or transfer of stake by existing investor to a new foreign investor.

BROADCASTING CONTENT SERVICES

  • FDI in FM radio is allowed up to 49% under the Government route.
  • FDI in up-linking of ‘News and Current Affairs’ TV channels, is allowed up to 49% under the Government route.
  • FDI in up-linking of ‘Non-News and Current Affairs’ TV channels/ down-linking of TV channels, is allowed up to 100% under the Automatic route.

PRINT MEDIA

  • 26% FDI under the Government route is allowed in the publishing of newspapers and periodicals dealing with news and current affairs. 
  • 26% FDI under the Government route is allowed in the publication of Indian editions of foreign magazines dealing with news and current affairs.
  • 100% FDI under the Government route is allowed in publishing/ printing of scientific and technical magazines/specialty journals/ periodicals.
  • 100% FDI under the Government route is allowed in the publication of facsimile editions of foreign newspapers.10

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 Government of India passed ‘The Cable Television Networks (Regulation) Amendment Act’ for the digitization of cable television networks by 2014.
  • Cable operators under the digitization regime, are legally bound to transmit only digital signals, while customers can access subscribed channels through a set-top box.
  • The Government announced 90% subsidy for the North Eastern States and 75% subsidy for other states in setting up of community radio stations.11
  • National Digital Communications Policy (2018) has the following objectives to achieve by 2022:
    • Broadband for all
    • Creating 4 mn additional jobs in the Digital communications industry
    • Enhancing the contribution of the Digital Communications industry to 8% of India’s GDP from 6% in 2017
    • Propelling India to be the top 50 nations in the ICT Development Index of International Telecommunication Union (ITU) from 134 in 2017
    • Enhancing India’s contribution to global value chains
    • Ensuring digital sovereignty12
  • Co-production treaties with various countries such as Italy, Brazil, the UK and Germany are to increase the export potential of the film industry.
FINANCIAL SUPPORT

PROVISIONS OF THE 2018-19 UNION BUDGET 

  • Allocation for Digital India scheme was doubled to US$ 439.5 mn. US$ 1.43 bn was assigned for the creation and augmentation of communication infrastructure.
  • Bharatnet Project aims to connect 100,000 gram-panchayats (village councils) with high-speed broadband connectivity.
  • Department of Telecom to support the establishment of an indigenous 5G Test Bed at IIT Madras, Chennai.13

STATE INCENTIVES

  • Available with different states depending upon the investment, number of jobs created, area of investment, etc.

OTHER INCENTIVES

  • Ministry of Information & Broadcasting, Government of India, announced 90% subsidy for the North Eastern States and 75% subsidy for other States in setting up of community radio stations.14
INVESTMENT OPPORTUNITIES

TELEVISION

  • The Television industry is estimated to hold 40% of the M&E industry by 2021.
  • Television advertisement revenue grew 14% in 2018 to reach US$ 4.4 bn.

PRINT

  • The Print industry has grown from US$ 2.88 bn in 2014 to reach US$ 4.53 bn in 2019 at a CAGR of around 9.5%.
  • Newspapers and niche magazines are likely to drive industry growth Advertising revenues were US$ 3.1 bn in 2018. 
  • Accelerated growth is forecast in regional print and local news segments.

FILMS

  • The size of the Indian film industry is expected to reach US$ 3.37 bn by 2021, up from US$ 2.23 bn in 2017.
  • The industry is expected to grow with a CAGR of 10.6% for the 2018-21 period.
  • 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.
  • To promote India as a destination for foreign production houses, the Government has set up a single window system for obtaining approvals and permissions from various Government Authorities. 

RADIO

  • The size of the Radio industry in India is estimated to reach US$ 557 mn in 2021, up from US$ 414 mn in 2017.
  • The Radio industry is expected to grow at a CAGR of 8% over the period 2018-21.
  • Phase-III of e-auctions for FM radio licenses will provide an impetus to the segment.

DIGITAL MEDIA

  • The size of the Digital Media industry in India is estimated to reach US$ 5.06 bn by 2021, up from US$1.7 bn in 2017.
  • The industry is expected to grow at a CAGR of 28% over the period 2018-21.

ONLINE GAMING 

  • The size of the Online Gaming industry in India is estimated to reach US $1.71 bn in 2021, up from US$ 429 mn in 2017.
  • The industry is expected to grow at a CAGR of 35.4% during 2018-21.

ANIMATION & VFX

  • The size of the Animation and VFX industry in India is estimated to reach US$ 1.83 bn by 2021, up from US$ 958 mn in 2017. 
  • The industry is expected to grow at a CAGR of 17.4% during 2018-21.
  • The growth in international animation films, especially 3D productions and the subsequent impetus for Indian production houses will further help growth in this segment.15
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
KEY ACHIEVEMENTS
  • FDI grew 1.8 times in Information & Broadcasting - from US$ 1.9 bn during 2010-14 to US$ 3.4 bn in 2014-18.
  • FDI inflow from April 2000 till March 2019 amounted to US$8.38 bn.16 
  • Print Media Advertisement Policy 2016, to promote transparency and accountability in the release of advertisements by Directorate of Advertising & Visual Publicity (DAVP)
  • Guidelines for empanelment procedure by DAVP to ensure fairness among various categories of Newspapers/ Journals.
  • National Film Heritage Mission (NFHM) launched with US$ 89 mn allotments for implementing single window clearances for film shootings for foreign filmmakers in India.17 
  • Film and Television Institute approved in Arunachal Pradesh.
SOURCES
  1. Value of the global entertainment and media market from 2011 to 2021 (in trillion U.S. dollars), Statista website, https://www.statista.com/statistics/237749/value-of-the-global-entertainment-and-media-market/, accessed on 07 June 2019
  2. A billion screens of opportunity -India's Media & Entertainment sector- March 2019, EY external sources accessed on 07 June 2019
  3. Film tourism in India – a beginning towards unlocking its potential, EY external sources accessed on 07 June 2019
  4. Journey of Television Revolution, PIB website, http://pib.nic.in/newsite/printrelease.aspx?relid=169686, accessed on 07 June 2019
  5. A billion screens of opportunity -India's Media & Entertainment sector- March 2019, EY external sources accessed on 07 June 2019
  6. Journey of Television Revolution, PIB website, http://pib.nic.in/newsite/printrelease.aspx?relid=169686, accessed on 07 June 2019
  7. Press In India Highlights, Office Of Registrar Of Newspapers For India (GoI) website, http://rni.nic.in/all_page/press_india.aspx, accessed on 07 June 2019
  8. A billion screens of opportunity -India's Media & Entertainment sector- March 2019, EY external sources accessed on 07 June 2019
  9. A billion screens of opportunity -India's Media & Entertainment sector- March 2019, EY external sources accessed on 07 June 2019
  10. Consolidated FDI Policy,DPIIT website, https://dipp.gov.in/sites/default/files/CFPC_2017_FINAL_RELEASED_28.8.17_1.pdf, accessed on 07 June 2019
  11. I&B Ministry to provide 90% subsidy for NE States and 75% subsidy for other States for setting up Community Radio Stations,” PIB website, http://pib.nic.in/newsite/PrintRelease.aspx?relid=155261, accessed on 07 June 2019
  12. National Digital Communications Policy 2018, Department of Telecommunication website, http://dot.gov.in/sites/default/files/EnglishPolicy-NDCP.pdf, accessed on 07 June 2019
  13. Budget 2018-2019 - Speech of Arun Jaitley - Minister of Finance, India Budget website, https://www.indiabudget.gov.in/budget2018-2019/ub2018-19/bs/bs.pdf, accessed on 07 June 2019
  14. I&B Ministry to provide 90% subsidy for NE States and 75% subsidy for other States for setting up Community Radio Stations,” PIB website, http://pib.nic.in/newsite/PrintRelease.aspx?relid=155261, accessed on 07 June 2019
  15. A billion screens of opportunity -India's Media & Entertainment sector- March 2019, EY external sources accessed on 07 June 2019
  16. Fact Sheet On Foreign Direct Investment (Fdi) From April, 2000 To March, 2019, DPIIT website, https://dipp.gov.in/sites/default/files/FDI_Factsheet_27May2019.pdf, accessed on 07 June 2019
  17. A billion screens of opportunity - India's Media & Entertainment sector- March 2019, EY external sources accessed on 07 June 2019
  • Print