Entertainement & Media Services

8/3/2019 Entertainement & Media Services

http://slidepdf.com/reader/full/entertainement-media-services 1/27

ENTERTAINEMENT & MEDIA

SERVICES



“ And in my opinion, entertainment in its

broadest sense has become a necessity rather

than a luxury in the life ...

Walt Disney”



Indian Entertainment and Media

Industry

• The Indian entertainment and media (E&M) industry has out-performed the

Indian economy and is one of the fastest growing sectors in India. The

E&M industry generally tends to grow faster when the economy is

expanding. The Indian economy has been growing at a fast clip over the

last few years, and the income levels too have been experiencing a high

growth rate.

• Media penetration varies across socio-economic classes



• Today, India has probably one of the most liberal investment regimes

amongst the emerging economies with a conducive foreign direct

investment (FDI) environment. The E&M industry has significantly

benefited from this liberal regime and most segments of the E&M industrytoday allow foreign investment. Recently FDI was permitted in the two

important sectors – print media and radio. Films, television and other

segments are already open to foreign investment.

• The overall forecast is that the Indian entertainment and media (E&M)industry is expected to grow by 13.2 per cent, cumulatively, over the period

2011-15, to reach INR 1199 billion (Rs 1,19,900 crore). The industry in

2010 stood at INR 646.0 billion (Rs 64,600 crore) as compared to INR

580.8 billion (Rs 58,080 crore) in 2009. The Indian E&M industry grew by

11.2 per cent last year, on the back of improved economic conditions andrebound in advertising spends.



Over the next five years:

The TV sector is estimated to grow at 14.5 percent cumulatively; this

industry was estimated to be INR 306.5 billion (Rs 30,650 crore) in 2010. The film sector is projected to grow at a CAGR (compound annual growth

rate) of 9.3 per cent; this industry was estimated to be INR 87.5 billion (Rs

8,750 crore) in 2010.

The print media sector is projected to grow by 9.6 per cent; this industry

was estimated to be INR 178.7 billion (Rs 17,870 crore) in 2010. The radio sector is projected to grow at a CAGR of 19.2 per cent; this

industry was estimated to be INR 10.8 billion (Rs 1,080 crore) in 2010.

The music sector is projected to grow at a CAGR of 17.6 per cent; this

industry was estimated to be INR 9.5 billion (Rs 950 crore) in 2010.

Internet advertising is projected to grow by 25.5 per cent; this industry wasestimated to be INR 7.7 billion (Rs 770 crore) in 2010.



The animation, gaming and VFX industry is projected to grow at a CAGR

of 21.4 per cent, this industry was estimated to be INR 31.3 billion (Rs

3,130 crore) in 2010.



• In 2010, the advertising industry registered a growth of 14.3 per cent and

stood at INR 247.5 billion as compared to INR 216.5 billion in 2009.Internet advertising, with 28 per cent growth (from INR 6.0 in 2009 to INR

7.7 billion in 2010), remained the fastest growing segment as an increasing

number of advertisers are using the online platform to connect with the

youth.

• The TV industry grew by 15.4 per cent; the print industry grew by 10.7 percent; the OOH industry grew by 12 per cent; the radio industry grew by 20

per cent; the internet industry grew by 28.3 per cent; and the animation,

gaming and VFX industry grew by 31.4 per cent and the music industry

grew by 25.7 per cent.

• The only industry that didn't grow was the film industry; in fact, it fell by7.9 per cent, that is, from INR 95.0 billion (Rs 9,500 crore) to INR 87.5

billion (Rs 8,750 crore), in 2010.



India remains a smallish contributor to the

Asia-Pacific E&M industry. Japan at USD

174 billion is by far the dominant country,

accounting for 44% of the total spending

in Asia Pacific in 2010 and the second

largest country in the world behind the

US. While advertising is growing at a ratehigher than GDP growth, it is estimated

that advertisement as a percentage of

the GDP will remain low as compared to

other developed countries like the US and

Japan.



• All industry segments showed healthy growth in advertisement with print

and OOH recovering well from the dip in 2009 to register a growth of 13.5% and 12% respectively. Internet advertising, with 28% growth,

remained the fastest-growing segment as an increasing number of

advertisers are looking to use the online platform to connect with the youth.

Radio also showed a healthy growth of 20% and is fast catching up with

OOH. Print advertising remained the largest segment in the advertisingindustry at 46% followed by television at 41%.



TELEVISION SECTOR



PRINT MEDIA



KEY ASPECTS IN PRINT MEDIA



RADIO SECTOR



KEY ASPECTS IN RADIO SECTOR



MUSIC SECTOR



KEY ASPECTS IN MUSIC SECTOR



INTERNET ADVERTISING



KEY ASPECTS IN INTERNET ADVERTISING



OUT OF HOME



ANIMATION & GAMING



KEY ASPECTS IN ANIMATION & GAMING



FDI in E&M Industry

•

Foreign Direct Investment up to 100 percent is allowed inmost of the sectors, more specifically,

• For Film Industry – Up to 100%

• For Radio Industry – Up to 20%

•For Print Media - Up to 74% publishing scientific/technicaland specialty magazines/ periodicals/journals

- Up to 26% publishing newspapers and

periodicals dealing in news



What is the future?

Like the rest of the world, in India too, the industry will have to contend with risingdemand for the digital experience. The digital experience goes beyond providing just good content and includes providing it on the device of choice as well as ondemand. The industry will also have to contend with the monetisation acrossdifferent platforms as well as devices, central to their existence. It is beingincreasingly recognised that the digital experience cannot be delivered or monetisedwithout multi-party collaboration. As a result, there is an upsurge in collaborativepartnering – heralding the transformation of the E&M industry over the next fiveyears into a digital collaborative ecosystem.

What do we focus on?

Industry participants, we believe should focus on the following to harness the

abovementioned drivers:• The empowered consumer

• The involved advertiser

• The business organisation by transforming into collaborative digital enterprise



Essentials for success

The route to success in this emerging collaborative digital environment liesin harnessing three industry-wide dynamics.

• Digital: There is rapid and accelerated digitisation of elements including

content, business process and product innovation. Social media and apps

for mobiles have had profound impact on how the consumer interacts with

his/her environment and this is set to grow further.• Demand: All interactions are being affected by rising consumer

expectations. Consumers are empowered, connected and ready to play an

increasingly collaborative role in developing new E&M products and

services.

• Data: Data is key to the interface between consumers, content, experienceand brand, as well as to innovation. Therefore, the ability to mine and

analyse detailed/contextual information is key.

Entertainement & Media Services

Documents

Transcript of Entertainement & Media Services