Media & Entertainment As on September 2012 Introduction The Indian M&E sector is making significant space for itself on global canvas owing to which many international production houses and business conglomerates are venturing into the country. For instance, Disney’s big stake buy in UTV Software Communications majorly drove the foreign direct investment (FDI) in 2011-12 in the sector, which stood at Rs 32.64 billion (US$ 588.95 million) 72 per cent higher than Rs 18.87 billion (US$ 340.86 million) received in 2010-11. Television Healthy advertisement spends coupled with increased penetration in rural and semi-urban areas are propelling the growth of the television sector in India. Emergence of direct-to-home (DTH) technology in a big way has made the television industry mark a value of US$ 7.1 billion by the end of 2011, which was 14 per cent higher than that in 2010. A report prepared by KPMG, along with an industry body, has stated that while the current level of penetration is estimated at around 60 per cent, there is still a room for expansion in the Indian TV landscape. The report estimates that pay-TV subscription revenue will increase from 65 per cent in 2011 to 69 per cent by 2016. Radio While TV is a captive medium, radio allows freedom of movement. Other than being a popular medium with the youth, radio has far-reaching impact on people in remote places. Recently, Yashwantrao Chavan Maharashtra Open University (YCMOU) has launched an interactive live web-radio from its campus studio in Nashik, Maharashtra. Through this technology, the university intends to connect students from anywhere in the world to experts of various subjects and enable them to listen to lectures, hold discussions and interviews. Online and Mobile Entertainment Internet has emerged as one of the strongest mediums to reach out to people, due to better broadband speeds, easy availability and reasonable pricing of internet-enabled devices and awareness among today’s youth. The online viewership of video content is on an upsurge – be it for news or for entertainment (social networking, shopping, et al). Due to this increased popularity, mobile phones have become the second most-viewed screen for Indian consumers. About two crore internet users in India are opting for the service over their mobile phones, according to a study by online audience and ad measurement platform Vizisense. Social networking sites have also gained a lot of attention over past few years. They reach to about 82 per cent of the world’s online population and the numbers are increasing day by day. India’s small and medium enterprises (SMEs) are also looking to capitalise this medium as social media in the country is growing at 100 per cent and 129.3 million Indians are anticipated to join the forums. SMEs are looking forward to reach and develop a strong consumer base through social networking sites. An industry body has even joined hands with Facebook to organise road shows to spread awareness among SMEs about the benefits of using social media for business transformation. Films The Indian film fraternity will complete its century in 2013. The industry is anticipated to grow by 9 per cent per annum till 2015 to reach US$ 2.8 billion, according to Deloitte. In an effort to make India a hub for international films, the Ministry of Information and Broadcasting (I&B) is contemplating to establish a Film Commission that will initially act as a single-window clearance agency to grant permits for shooting. If the initiative gets materialised, international production houses will save a lot of time and energy which are currently diverted in seeking multiple approvals. Investments The Indian advertising industry clocked revenues worth Rs 25,594 crore (US$ 4.62 billion) in 2011, which were 8 per cent higher than the figures achieved in 2010, according to a report by Pitch Madison India. - The fast moving consumer goods (FMCG) sector has numerous brands and categories to offer to consumers. The sector players keep introducing new products and hence, seek sales-support with ads and promos. The industry segment contributes more than half to TV advertising and 9 per cent to the print media. - In order to target multi-tasking and busy viewers, M&E industry major Zee Entertainment Enterprises has launched its over-the-top (OTT) distribution platform called Ditto TV. The new service, which facilitates live TV channels and on-demand video content to users on their mobile phones, tablets, laptops, desktops, entertainment boxes and connected TVs, was launched in Februry 2012 and also offers features such as adaptive streaming, an electronic program guide and a content recommendation application. - Aegis Group has acquired Communicate 2 to merge it with its iProspect global network. Communicate 2 is a specialist performance marketing firm that counts search marketing, digital strategy consulting, social media and digital content production as its forte. - Getit, pioneer of the concept of Yellow Pages in India, has appointed Aidem ventures to handle its corporate advertising sales for next 5 years. Getit has upgraded itself into a digital media firm that specialises in local search and classifieds. It is India’s leading ‘directional media’ service provider that facilitates quality prospects to businesses and brands across the categories. Aidem is an independent media consulting, marketing and advertising, sales company. Government Initiatives Apart from setting up a Film Commission, the Ministry of I&B is also working on an incentive package in co-operation with the Ministry of Tourism wherein they would promote film tourism. Ms Ambika Soni, Minister for I&B, India and her counterpart, the Poland Minister for Culture and National Heritage, Mr B Zdrojewski, will sign an audio-visual co-production agreement. The two ministries would also hold discussions on how to preserve film heritage at the National Film Archives of Poland. Road Ahead Indian animation industry is at a very nascent stage and is expected to grow in the recent future. Indian players are majorly acting as ‘service providers’ wherein they are involved with labour-intensive production and post-production activities. However, they are increasingly adapting to international animation standards and are learning modern techniques to come at par. Industry experts, considering the potential in Indian participants, expect the country’s animation industry to grow at a compounded annual growth rate (CAGR) of about 23 per cent to reach US$ 961 million by 2013. References: Media Reports, Press Releases, Deloitte Report