Media and Entertainment

Summary
  • Globally, India is the largest consumer of mobile data11 and the second-largest television market.3
  • India is currently the world’s second-largest telecommunications market with a subscriber base of 1.18 bn. India’s growing mobile economy now constitutes about 98% of all telephone subscriptions.13
  • Television households will continue to grow at over 5% till 2025, driven by connected TVs which could cross 40 mn by 2025 and DD Free Dish could cross 50 mn.
  • Between 2017 and 2021, Doordarshan and All India Radio across both News and General Infotainment have added a cumulative of more than 15 Million Digital Subscribers on YouTube alone, to reach a current digital subscriber base of 1.73 Crores (17.3 Million).
  • MeitY aims to have a ‘tectonic shift’ in digital strategy to harness the opportunity to create an economic value add of USD 800 bn by the year 2024 and USD 1 tn by the year 2025 through right digital interventions.
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
  • Procedures related to Right of Way (RoW) permission for establishment of Digital Infrastructure eased.
  • GOI targets the Media & Entertainment market worth USD 100 bn. Government supports anti-piracy movement and thus, draft Cinematograph Act has recommended strong action against those indulging in piracy. 
  • In pursuance of the announcement made in the Union Budget 2022-23, an Animation, Visual Effects, Gaming and Comics (AVGC) Promotion Task Force has been constituted to promote the AVGC sector in the country under the aegis of Ministry of Information and Broadcasting.
  • Department of Telecom issues SOP to ensure greater levels of standardization, efficiency as well as transparency and accountability in the deduction verification process.
  • GOI has launched the “GatiShakti Sanchar” portal for Centralised Right of Way (RoW) approvals (www.sugamsanchar.gov.in) with the aim to create a backbone of infrastructure by facilitating smooth and efficient deployment of Digital Communications Infrastructure across the country.
  • Cabinet approves Auction of IMT/5G Spectrum. The 5G test bed setup in 8 top technology institutes of India is speeding up the launch of domestic 5G technology in India. *
  • Media & Entertainment ecosystem is a sunrise sector expected to generate INR 4 lakh crores annually by 2025 and reach USD 100 bn or INR 7.5 lakh crore industry by 2030. *

Explore more about infrastructure availability in Media and Entertainment sector >

Recent Announcements

23rd September 2022: CCI approves amalgamation of Jio Cinema OTT platform with Viacom 18 Media Private Limited.

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19th September 2022: Operational guidelines in respect of ‘License Fee’, ‘Platform Services’ and ‘Sharing of Infrastructure’ for DTH services in India.

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24th  June 2022: C-DOT signs agreement with Galore Networks for collaborative development of end-to-end 5G Radio Access Network (RAN) products & solutions.

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15th  June 2022: Cabinet approves Auction of IMT/5G Spectrum.

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18th May 2022: Shri Anurag Thakur today unveiled two schemes to incentivize shooting of foreign films and foreign co-productions with India. 

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14th May 2022: Department of Telecommunication Launches “GatiShakti Sanchar” Portal for Centralised Right of Way (RoW) approvals.

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Statistics
  • With the increasing online population, online gaming and digital media are projected to have the highest CAGR (2019-22) of 43% and 23% respectively. 6
  • Investment of around INR 3,345 crore envisaged in the sector over 4 years creating additional employment of more than 40 thousand people.
  • 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. 6
  • FFO has facilitated 120 international film makers from 27 countries to shoot in India, in last 5-6 years since its formation in 2015.
  • The Average Index of Industrial Production of Printing and reproduction of recorded media in the FY 2021-22 is 72.9 and has grown by 11.6 percent.
  • The index of Industrial production of Printing and reproduction of recorded media values at 89.3, increased by 38 percent in April 2022 over April 2021 which was valued at 64.7. *
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. 6
  • 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.
  •  India and Vietnam sign Letter of Intent on collaboration in the fields of digital media, paving the way for strengthening partnership. 
  • India signs Host Country Agreement with the International Telecommunication Union for the establishment of Area Office & Innovation Centre at New Delhi to serve South Asian countries namely Afghanistan, Bangladesh, Bhutan, Iran, Maldives, Nepal, Sri Lanka and India. 
  • Government is focusing on increasing screen density and creating single window clearance for setting up theatres. GOI plans to set up rural theatres and mobile screens in order to achieve this objective.
  • For audio visual co-production with foreign countries, reimbursement of up to INR 2 crore or 30% for INR 25 crore budget film is available.
  • The process of certification for films has been smoothened as much as possible. With some human intervention for watching the films and certifying it, GOI have streamlined the system so as to speed up other parts of the process.
  • India's public broadcaster Prasar Bharati has signed MOU with Special Broadcasting Service (SBS), Australia's public service broadcaster to boost co-operation in the field of broadcasting. Through this MoU, the two broadcasters will explore opportunities in co-production and joint broadcasting of programmes spanning across multiple genres. They will also exchange programmes (Radio and Television content) in the fields of culture, education, science, entertainment, sports, news, travel, music and arts.
  • Ministry of Information and Broadcasting has transferred the mandate of production of documentaries and short films, organization of film festivals and preservation of films to the National Film Development Corporation (NFDC), a PSU working under the Ministry to reduce the overlap of various activities and ensure better utilization of public resources. 
  • Broadcast Seva Portal is launched as an online portal solution for speedy filing and processing of applications of broadcasters for various kinds of licenses, permissions, registrations, etc with the aim of Ease of Doing Business in the Broadcasting sector. 
  • C-DOT and C-DAC signed an MoU with the objective of working together in the diverse areas of Telecom and ICT to boost indigenous technological design and development.
  • Telecommunication Engineering Centre (TEC) & M/s VVDN sign MoU for Open RAN testing facility to facilitate registered startups, MSMEs and Innovators.
  • C-DOT signs agreement with Galore Networks for collaborative development of end-to-end 5G Radio Access Network (RAN) products & solutions with an objective of creating a multi-partner indigenous 5G ecosystem through Startups.*
FDI Policy
  • BROADCASTING CARRIAGE SERVICES 7
    • 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. 
  • BROADCASTING CONTENT SERVICES 7
    • 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 7
    • 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/speciality journals/ periodicals.
    • 100% FDI under the Government route is allowed in the publication of facsimile editions of foreign newspapers.
  • The cumulative FDI equity inflow in the Information and Broadcasting industry (including Print Media) is USD 9,674.30 mn during the period April 2000 to March 2022. This constitutes almost 1.64% of the total FDI inflow received across sectors.*
  • : The cumulative FDI equity inflow in the Photographic Raw Film & Paper is USD 67.29 mn during the period April 2000 to March 2022. 
  • The cumulative FDI equity inflow in the Telecommunication Sector is USD 38,331.20 mn during the period April 2000 to March 2022. This constitutes almost 6.51% of the total FDI inflow received across sectors.
  • The cumulative FDI equity inflow in the Printing of Books (Including Litho Printing Industry) is USD 2,185.31 mn during the period April 2000 to March 2022.
  • Foreign Direct Investment (FDI) in telecom sector rises by 150% between 2014-2021 as compared to 2002-2014.

 

Read more about Foreign Direct Investment Policy in India >

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Telecom & Networking Products sector for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.

Financial Outlay: INR 12,195 crore

For more details on PLI Scheme, Click Here

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: 9
    • 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 
  • Co-production treaties with various countries such as Italy, Brazil, the UK and Germany are to increase the export potential of the film industry.
  • The “National Broadband Mission” (NBM) or “Rashtriya Broadband Abhiyan” has been launched by the Government of India to operationalize the objective of National Digital Communications Policy – 2018 (NDCP-18), i.e. “Broadband for All”. NBM also aims to bridge the digital divide in the country, fast track growth of digital communications infrastructure, facilitate digital empowerment & inclusion and provide affordable, universal access to broadband to all. 11

Incentive Scheme for Audio-Visual Co-production: 

  • The Indian Co-producer can claim a payable cash reimbursement of up to 30% on Qualifying Expenditure in India subject to a maximum of INR 2 crore (USD 260,000). However, reimbursement shall be divided among the Producers as per their respective share of the financial contribution for the project. 
  • The project must have been granted a “Co-Production” status by the Ministry of I&B and the participating country(ies), under one of India’s official bi-lateral co-production treaties on Audio-Visual Co-production. Projects that have been granted official Co-production status after 01.04.2022 are eligible for the incentive.

Incentive Scheme Shooting of foreign films in India

  • Apart from that an additional 5% bonus up to a maximum of INR 50 lakhs (USD 65,000) can be claimed, as additional reimbursement and would be granted for employing 15% or more manpower in India. 
  • To avail this scheme International productions that have been granted shooting permission by the Ministry of Information & Broadcasting and Ministry of External Affairs (for documentaries only) after 01.04.2022 shall be eligible.

Prasar Bharati Procurement Policy

  • The policy is a directive to all procurement entities in all Prasar Bharati verticals, including All India Radio (AIR) and Doordarshan (DD), to procure materials, services, and work of the specified quality at the most competitive prices in a fair, just, and transparent manner.*
  • The comprehensive Policy will assist in expediting procurement processes, resulting in timely budget usage and fulfilling completion deadlines, particularly for infrastructure Projects. * 

Explore Government policies/schemes in Media and Entertainment sector >

Financial Support

GOI has made a budgetary allocation of INR 1304.52 crore up to 2026 for all the activities, which will be implemented through NFDC. 

Union Budget 2022-23

  • The total budgetary allocation for FY 2022-23 towards the Ministry of Information and Broadcasting is INR 3,980.77 cr.

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. 8
Investment Opportunities

Some of the prospective sub-sectors in the E&M industry for private investors include: 6

  • Television industry 
  • Digital media 
  • Filmed entertainment 
  • Animation and VFX
  • Online gaming 
  • Over-the-top (OTT) media services 

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
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://static.investindia.gov.in/s3fs-public/2020-09/FDI%20Policy%202020%20revised_18%20Sept%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. National Broadband Mission, https://dot.gov.in/sites/default/files/National%20Broadband%20Mission%20-%20Booklet_0.pdf?download=1 
  12. Factsheet on FDI - April 2000 to December 2021, Department for Promotion of Industry and Internal Trade, https://dpiit.gov.in/sites/default/files/FDI%20Factsheet%20December%2C%202021.pdf
  13. Annual Report, Department for Promotion of Industry and Internal Trade, https://dot.gov.in/sites/default/files/Annual%20Report-2019-20%28%20English%29.pdf

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