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LATEST NEWS

Sector Overview

Indian Media ad Entertainments sector is growing very fast and is projected to be the 2nd fastest growing advertising market in Asia after China. increasing digitisation, higher usage of internet, rising incomes and evolving lifestyles in the past two decades contributing significantly to the growth of Indian Media and Entertainment sector. Despite of slow growth witnessed in the worldwide market, the Indian M&E industry is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenues. Internet has almost become a mainstream media for entertainment for most of the people. India is today the 2nd largest television market in the world with US$ 10.14 billion in revenue in 2017.

Being one of the largest film producer in the world, Bollywood alone is valued at $2.28 billion industry (ASSOCHAM). Growing demand of Indian Films around the globe has also created huge demand for Indian film-makers and trained professionals. Top film and video production houses in India are attracting huge outsourced work from Hollywood providing all Post production, sound & multimedia services in India. Major post production services in India includes Video Editing, Colour Corrections & color grading, writing, recording, and editing of the soundtrack, Visual Effects, 2D-to-3D conversion, Animation, Dubbing and many more. A good number of film services production companies in India are operating in Mumbai, Bangalore, Hyderabad and Chennai which are known as the hub of post production studios in India.

Skilled professionals and world class post-production capabilities in VFX, 3D and animation is making India, a popular outsourcing destination for post-production, sound & multimedia work from around the globe. The high skilled Post-production professionals in India are supporting the strong growth of Indian VFX and Post-production Industry. VFX and Film post-productions in India has registered strong growth of 21.1% in the FY2018 and is expected to grow by 16.9% between the FY18-23. The Industry has reached 56.8 INR Billion in the year 2017-18 (KPMG Media & Entertainment report 2018).

Media & Entertainment Industry Comprises of

imag
  • Television
  • Films
  • Out of Home (OOH)
  • Radio
  • Animation and Visual effect (VFX)
  • Music
  • Gaming
  • Digital Advertising
  • Print Media
  • Live Events
 

Industry Trends

Indian Media & Entertainment Industry has shown promising trends in the past few years and stood at Rs. 1436 Billion in the financial year 2018.

imf 2nd Largest Entertainment Market in Asia: Home to consumer base of 168 Million television households, 99,7000 newspapers, close to 2,000 multiplexes and close to 300 Million Internet users.
Indian M&E Sector reached INR1.5 Trillion (USD 22.7 Billion) in 2017 & is expected to cross INR 2 Trillion market by 2020
Exponential growth in every vertical: TV, VFX Animation, Gaming, OOH, Radio, Music & Digital advertising.

Industry provides employment to 3.5-4 million people, including both direct and indirect employment in the year 2017.
Maintained a growth rate of 11.6 % for the last 5 Years and expecting 15% per annum growth in the years to come.

Segment Specific Trends

TV

Television

Largest segment contributing 44.8% total M&E Industry growing with CAGR of 11.2%.

print

Print

The print industry accounted for the second largest share in M&E to reach Rs 303 billion (US$ 4.66 billion) in 2017, with a CAGR of 7 per cent till 2020.

Increasing income levels and evolving lifestyles have led to robust growth in niche magazines segment. The Print market is expected to reach US$6.69 billion by 2021

Videos

Films

The Indian film industry is largest producer of films globally with 400 production and corporate houses involved in film production.

With beautiful sceneries and exotic locations, India is a perfect location for filming movies.

One stop destination for all the post production services. High quality services with latest technology and competitive cost is attracting huge post-production work to India from worldwide.

VFX

OOH & Digital

Digital is an important contributor in M&E Industry with 4.5% share in 2017. With increasing penetration of internet and digital mediums, digital segment is expected to outperform other sectors of entertainment.

Radio

Radio

In 2017, the radio industry in India accounted for a market size of Rs 26 billion (US$ 399.26 million), registering growth of CAGR 8.33 per cent during 2016-17

Increasing FM enabled phones and car music systems Leading to more expansion of Radio.

Animation

Animation & Gaming

Data available from Nazara DRHP shows that 87% population in India are playing online games which is expected to increase to 97% in 2020. Indian states like Bangalore and Hyderabad are the hub of gaming and animation content, creating world class animation films and gaming shows.

Music

Music

Indian Music Industry has reached INR 12.8 Billion in 2017 and is expected to rise to INR 18 Billion by 2020.

Digital music on mobile continues to drive music industry. Music work of India is recognized worldwide for its cultural essence.



 

Market Size (US $ Billion)

 

Source: IBEF M&E Report, 2018

  • As per data available from KPMG/FICCI Industry Analysis, The Indian M&E Industry is projected to grow at a faster pace of 14% over the period 2016-21, with advertising revenue expected to increase at CAGR 15.3%.
  • By 2019, the combined market size of Indian media and entertainment industry will be USD 30 billion, (Indian Media and Entertainment Industry 2015)
  • India is one of the top five markets for media, content and technology agency Wavemaker where it services clients like Hero MotoCorp, Paytm, IPL and Myntra, etc.
 
 

References: Data and reports available in the public domain including Ministries Annual Reports and Data Statistics, IBEF Sectoral Reports, Department of Industrial Policy and Promotion (DIPP), RBI handbook of Statistics on Indian Economy, Media & Industry Reports, Press Information Bureau (PIB), Union Budget 2018-19

Disclaimer - This information has been collected through secondary research and is available in public domain. We are not responsible for any errors in the same.

 

Advantage India

 
1
Skilled Professionals- Skilled media and technology professionals along with an enabling ecosystem creating valuable and talented pool is adding advantage for India.
 
1
Locales- Indian geographical landscape covering wide variety of locations are important simulators attracting foreign locales to shoot in India.
 
1
Young Consumers – 61% Population below the age of 25 years from present to 2020 onwards.
 
2
Urbanization – More than 35% of population will reside in Urban Areas by 2020
 
FDI Inflows – From April 2000- June 2017, FDI Inflows in Information and Broadcasting Services (Including Print media) has reached US$6.6 Billion.
2
 
Open FDI Policy – 100% FDI allowed in Advertising, TV Broadcasting, cable Network.
2
 
2
Growing Digital Infrastructure – 2nd Largest Smartphone Market in the world, High Speed Broad Penetration to reach 53% by 2020, 15 times increase in Mobile wallets, High Data Consumption
 

Sector Contribution to Economy

There are multi-faceted economic benefits of the Industry on the overall economy as there is both direct as well as indirect impact of employment and revenues, with high multiplier effect.

imf The Direct revenue generated by the M & E Industry is estimated at around Rs 1.3 – 1.35 lakh crores for 2016-17. Considering the direct, indirect and induced benefits, the total output is placed at around Rs 4.5 lakh crores which essentially means that each rupee earned in the industry translates to 3.5 rupees to the country with a total contribution of 2.8% to Indian GDP.

 

imgdf The Indian M & E Industry employs around 1.1-1.2 million people and significantly contributes to job creation in the country. These jobs are spread across various verticals including films, print, television, music, and radio as well as smaller sectors such as gaming, animation etc.

imgdf The Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B) sector (including Print Media) in the period April 2000 – September 2017 stood at US$ 6.86 billion, as per data released by Department of Industrial Policy and Promotion (DIPP).

Demand growth, supply advantages and policy support are the key drivers in attracting FDI.

FDI Inflow

Source: IBEF M&E Report, 2018

Policy Support & Government Initiatives

TV

Television

FDI limit for DTH satellite and Digital cable network raised from 74 % to 100 % by the government as per FDI Policy, 2017.

As per consolidated FDI policy, for up-linking and downlinking of TV channels other than news and current Affairs, 100% FDI under automatic route is allowed. For News channel up to 49% through government route is allowed.

Digitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help players improve their value chain.

Videos

Film

Co-production treaties are initiated with various countries such as ltaly, Brazil, UK and Germany to increase the export potential of the film industry.

Granted ‘industry’ status in 2001 for easy access to institutional finance.

FDI of up to 100 % through the automatic route has been granted by government.

Government of India is encouraging foreign producers to shoot in India by providing necessary supporting services. From entire shooting to the post- production, a foreign producer can make a full movie in India with comparatively low cost as of other developing and developed countries.

Radio

Radio

FDI limit in radio, including private FM channels have been increased from 26 % to 49 %

Private players allowed to carry news bulletins of All India Radio

Private operators allowed to own multiple channels in a city, subject to a limit of 40 per cent of total channels in the city.

Print

Print

FDI/NRI investment of up to 26 % in an Indian firm dealing with publication of newspaper and periodicals is allowed

FDI/NRI investment of up to 100 % in publications of scientific and technical magazines/ specialty journals/ periodicals

Music

Music

Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthens the royalty claims of musicians, lyricists, etc.

Policies are adopted against digital piracy and file-sharing to block illegal music websites

Adoption of revenue sharing model by Copyright Board requiring FM radio companies to share 2.0 % of their net advertising revenues with music companies.

Animation

Animation, Gaming

100% FDI allowed in the sector through automatic route.
The government has carved out a National Film Policy to tap the potential of the film sector mainly for the animation segment

Apart from above mentioned initiatives, several other initiatives have been taken by Indian government to boost M&E Sector such as-

 
  • Government of India has agreed to set up the National Centre of Excellence for Animation, Gaming, Visual Effects and Comics industry in Mumbai.
  • Government of Canada and India have signed an audio-visual co-production deal to enable producers from both the countries exchange and explore their culture and creativity.
  • Digitising the cable distribution sector to attract greater institutional funding through increasing FDI limit from 74 to 100 % in cable and DTH satellite platforms.
  • To boost Indian Film Industry, Government has granted Industry status to films sector for easy access to institutional finance.
  • Upon the recommendations of Telecom Regulatory Authority of India (TRAI), Government of India is set to FastTrack the recommendations on broadcasting as an attempt to boost reforms in the broadcasting sector.