Media and Entertainment

Summary
  • 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. *
  • Media and Entertainment sector to grow to more than 100 bn dollars by year 2030.*
  • India secures 4th rank in “ICT Services exports”.*
  • India jumps 6 ranks, from 67 in 2021 to 61 in 2022 in Network Readiness Index.*
  • 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.*
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.*
  • Government supports anti-piracy movement and thus, the draft Cinematograph Act has recommended strong action against those indulging in piracy. *
  • 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.*

Explore more about infrastructure availability in Media and Entertainment sector >

Recent Announcements

07th August 2023: Successfully commissioning of GSAT-24 unlocks one more step towards Aatmanirbhar Bharat: I&B Secretary Sh. Apurva Chandra.

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31st July 2023: Parliament Passes Cinematograph (Amendment) Bill, 2023

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13th July 2023: Government to provide free-dish, improve All India Radio’s reach in border villages on Indo-China border: Shri Anurag Thakur.

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01st May 2023: PM Modi's Mann Ki Baat completed its 100th episode on 30th April 2023

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14th March 2023: Oscars 2023: 'Naatu Naatu' becomes 1st song from an Indian film to win best original song

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Statistics
  • In the year 2022 -2023, Entertainment and Media industry grew at an above average rate of 11.4%.*
  • A study conducted by IIMC found that 76% of the Indian media persons believe that PM Modi’s ‘Mann Ki Baat’ has played an important role in introducing the real Bharat to the countrymen.*
  • Study by IIMC found that 63% people love to listen ‘Mann Ki Baat’ on YouTube.*
Growth Drivers
  • The government has released stringent regulations aimed at ensuring the safety of Digital Nagriks (citizens) and promoting accountability within the online gaming industry.*
  • TRAI has recently published its recommendations on improving the ease of doing business in the telecom and broadcasting sector. 
    Some of the recommendations being:*
    a) A user-friendly, transparent and responsive digital single window system based portal should be established. The portal should be enabled with new digital technologies for achieving end-to-end inter-departmental online processes.
    b) Each Ministry should establish a standing EoDB Committee to regularly review, simplify and update the existing processes and ensure ease of doing business as an on-going activity.
    c) MIB, DoT, DOS, MeitY and other agencies should specify stage-wise timelines for all the processes including initial as well as additional permissions, which should be mentioned in the respective Guidelines/ policy and updated in the Citizen Charter.
    d) The Government may consider and grant ‘Infrastructure Status’ to ‘Broadcasting and Cable Services Sector’.
    e) WPC should charge the spectrum royalty fee for temporary uplinking of live events on pro-rata basis for actual number of days of the event
  • Through NFDC, OTT will provide a platform for young filmmakers to showcase their talent.*
  • Incentives upto INR 2 crore for Co-production & upto INR 2.5 crore for shooting foreign films in India. *
  • The two schemes viz Incentive Scheme for Audio-Visual Co-production and Incentive Scheme Shooting of foreign films in India are aimed at unleashing the potential of Indian media and entertainment industry.*
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. 
  • 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/speciality journals/ periodicals.
    • 100% FDI under the Government route is allowed in the publication of facsimile editions of foreign newspapers.
  • Foreign Direct Investment (FDI) in telecom sector rises by 150% between 2014-2021 as compared to 2002-2014.
  • The cumulative FDI equity inflow in the Photographic Raw Film & Paper is USD 67.28 mn during the period April 2000 to March 2023 *
  • The cumulative FDI equity inflow in the Telecommunication Sector is USD 39.04 bn during the period April 2000 to March 2023. This constitutes almost 6% of the total FDI inflow received across sectors. *

 

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

  • Guidelines for Uplinking and Downlinking of Satellite Television Channels in India, 2022:*

    • New Guidelines ease compliance for Television Channels

    • No prior Permission for Live Telecast of Events

    • Indian Teleports may uplink Foreign Channels

    • Obligation to telecast content in National/Public Interest

  • TRAI notifies Amendments to the Regulatory Framework for Broadcasting and Cable Services*:

    • Every consumer now can get 228 TV channels instead of 100 channels earlier, in a maximum NCF of INR 130/-. It has enabled consumers to reduce their NCF for availing similar number of channels as per 2017 framework, by an estimated cost varying INR 40/- to 50/-.

    • The amended NCF for multi-TV homes have enabled further savings to the consumers to the tune of 60% on second (and more) television sets.

  • Guidelines for Platform Services offered by Multi-System Operators

    • Simple online registration process for PS channels by MSOs at nominal fees of Rs 1,000 per PS channel. The online registration portal for this purpose is under preparation and shall be notified shortly.

    • Only entities registered as Companies are allowed to provide local news and current affairs. MSOs not registered as “company” and desirous of providing local news and current affairs are mandatorily required to apply within 3 months with Ministry of Corporate Affairs for conversion into “company”.

    • Total number of permitted PS channels per operator is to be capped at 5% of the total channel carriage capacity.

  • The Government announced 90% subsidy for the North Eastern States and 75% subsidy for other states in setting up of community radio stations.*
  • 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.*
  • 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 
  • 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.*

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 2023-24*

  • The total budgetary allocation for FY 2023-24 towards the Ministry of Information and Broadcasting is INR 4692 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.
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
Sector Reports
  1. Year-End- Review of Ministry of Communication– 2022
  2.  Promoting Local Manufacturing in the Television Broadcasting Sector | TRAI
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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