MEDIA AND ENTERTAINMENT

  • Expand all
SUMMARY
  • The Media & Entertainment (M&E) industry revenues, at a global platform, are expected to rise from USD 1.8 Tn in 2016 to USD 2.2 Tn in 2021.1
  • The M&E industry in India reached USD 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 USD 33.6 Bn by 2021. India has more than 850 TV channels.2
  • India is the 2nd largest television market in the world.3
REASONS TO INVEST
  • 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.4
  • India had a total of 118,239 registered publications as of March 2018, consisting of 17,573 in the news category and 100,666 in periodicals.5
  • The 5G spectrum band is expected to be launched in 2020-21.

 

Explore more about infrastructure availability in Media and Entertainment sector >

STATISTICS
  • Largest industries by market size, within the M&E industry in 2019, include:6
    • Television (USD 11 Bn)
    • Print (USD 4.2 Bn)
    • Digital media (USD 3.1 Bn)
    • Filmed entertainment (USD 2.7 Bn)
  • India has about 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. 
  • While television and print retained their positions as the two largest segments, digital media overtook filmed entertainment in 2019 to become the third largest segment of the M&E sector. Digital subscription revenues more than doubled from 2018 levels and digital advertising revenues grew to command 24% of total advertising spend
GROWTH DRIVERS
  • Television and AGV (Animation, Gaming and VFX) segments are expected to lead the industry growth, with opportunities in digital technologies as well. The segment has  produced over 1,600 hours of original OTT content, 1,800+ films and over 200,000 hours of entertainment television.
  • 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 SERVICES7

  • 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 SERVICES7

  • 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 MEDIA7

  • 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.

Disclaimer: Investments are subject to fulfilling security conditions, rules and regulations of the Ministry of Information and Broadcasting and all other relevant legalities

Read more about Foreign Direct Investment Policy in India >

SECTOR POLICY
  • 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.8
  • 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 sovereignty 9
  • Co-production treaties with various countries such as Italy, Brazil, the UK and Germany are to increase the export potential of the film industry.

 

Explore Government policies/schemes in Media and Entertainment sector >

FINANCIAL SUPPORT

PROVISIONS OF THE 2020-21 UNION BUDGET 

  • It has been proposed to provide USD 845 Mn to Bharatnet programme in 2020-2110
  • 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.11

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.12
INVESTMENT OPPORTUNITIES

TELEVISION

  • The Television industry is estimated to hold 40% of the M&E industry by 2021.
  • Television advertisement revenue grew by 5% in 2019.13

PRINT

  • The Print industry has grown from USD 2.88 Bn in 2014 to reach USD 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 USD 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 USD 3.37 Bn by 2021, up from USD 2.23 Bn in 2017.
  • 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 USD 557 Mn in 2021, up from USD 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 USD 5.06 Bn by 2021, up from USD 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 USD 1.71 Bn in 2021, up from USD 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 USD 1.83 Bn by 2021, up from USD 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.

 

Explore projects to invest in Media and Entertainment sector >

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 inflow from April 2000 till December 2019 amounted to USD 8.71 Bn.14 
  • 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 USD 89 Mn allotments for implementing single window clearances for film shootings for foreign filmmakers in India.
  • 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/
  2. The era of consumer A.R.T. - India's Media & Entertainment sector, FICCI, http://ficci.in/publication.asp?spid=23200
  3. Journey of Television Revolution, PIB website, http://pibarchive.nic.in/newsite/printrelease.aspx?relid=169686
  4. Journey of Television Revolution, PIB website, http://pibarchive.nic.in/newsite/printrelease.aspx?relid=169686
  5. Press In India Highlights, Office Of Registrar Of Newspapers For India (GoI) website, http://rni.nic.in/all_page/press_india.aspx
  6. The era of consumer A.R.T. - India's Media & Entertainment sector, FICCI, http://ficci.in/publication.asp?spid=23200
  7. Consolidated FDI Policy, https://invest-india-revamp-static-files.s3.ap-south-1.amazonaws.com/2020-04/FDI%20Policy%202019%20revised_19%20April%202020.pdf
  8. 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://pibarchive.nic.in/newsite/PrintRelease.aspx?relid=155261
  9. National Digital Communications Policy 2018, Department of Telecommunication website, http://dot.gov.in/sites/default/files/EnglishPolicy-NDCP.pdf
  10. Summary of Union Budget 2020-21, PIB website,  https://www.pib.gov.in/PressReleseDetail.aspx?PRID=1601475

  11. 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
  12. 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://pibarchive.nic.in/newsite/PrintRelease.aspx?relid=155261
  13. The era of consumer A.R.T. - India's Media & Entertainment sector, FICCI, http://ficci.in/publication.asp?spid=23200
  14. Fact Sheet On Foreign Direct Investment (Fdi) From April, 2000 To December, 2019, DPIIT website, https://dipp.gov.in/sites/default/files/FDI_Factsheet_December-19_5March2020.pdf
HAVE A QUERY? CONNECT WITH US
  • Print

Related Posts:
Load more