Key highlights from PWC Media E&M Report:

OTT (Over-The-Top) Video: India’s OTT video market will grow at a 21.8% CAGR from INR 4464Cr in 2018 to INR 11976Cr in 2023. Subscription video on demand will increase at a 23.3% CAGR from INR 3756Cr in 2018 to INR 10708Cr in 2023. The potential of India’s enormous scale will become reality during the forecast period with its OTT video market overtaking that of South Korea to become the eighth-biggest market in the world by 2023.

Internet advertising: Total Internet advertising revenue for India in 2018 was INR 8150Cr, a 40.2% year-on-year increase from 2017. The Cricket World Cup and elections in 2019 are expected to boost advertising spends. Internet advertising is predicted to continue to grow rapidly in 2019 and beyond, and is forecast to be worth INR 18445Cr in 2023.

E-sports: India’s e-sports revenue is small at present but has strong potential with a calendar of well-supported events and leagues emerging. While outside sponsorship remains lower than global markets, this will see India’s e-sports sector increase at a 36.8% CAGR to the end of the forecast period. The main challenge for the segment has been poor online infrastructure, which has historically restricted growth. However, with improvements in infrastructure, this is expected to improve significantly in the near future.

Music & Podcasts: India’s music, radio and podcasts market was worth INR 5753Cr in 2018, up from INR 3890Cr in 2014. With streaming services finally germinating, total music revenue is forecast to hit INR 10858Cr in 2023, rising at a 13.5% CAGR.. At that pace, India would be the fastest-growing major economy on the planet. And with a population surging past 140Cr, it is forecast to surpass that of China in 2022.

Podcast listening has increased markedly in India in the past few years. Monthly listeners (defined as people who listened to at least one podcast in the last month) totalled 4Cr at the end of 2018, up a sharp 57.6% from 2.54Cr in the previous year. This made India the world’s third-largest podcast-listening market (after China and the US), although it ranks much lower on a per capita basis. Growth is set to continue over the forecast period with listener numbers set to increase at a 34.5% CAGR to 17.61Cr by 2023.

Four priorities shaping companies’ strategies

As E&M companies reinvent their organisations and offerings for an increasingly personalised world, four priorities are coming to the fore:

• One size does not fit all: As companies approach both markets of individuals and individual geographic markets, they are finding that it makes sense to present different options: all-you-can-eat offerings with unlimited usage in some areas, tiers of payments for different services in less developed markets, and competing on affordability. Meanwhile, across all markets — mature and developing — PwC’s research finds stark differences in terms of segment growth.
• The number of consumer touch points is expanding: As media and e-commerce experiences become more personal, gratification for consumers is becoming more instant and immediate. In response, content creators and distributors are devising new ways to appeal to consumers as individuals and marketers are figuring out how to meet consumers at the point of consumption and point them instantaneously towards purchase. Witness the rise of shoppable online advertising, often promoted by ‘influencers.’ Voice is also becoming a key form of interaction for both search and shopping, supported by the rise of smart speakers.
• Technological innovation introduces a new era of personalised computing: Companies are leveraging AI’s ability to understand people’s individual tastes and consumption habits to offer up the content individual users find most compelling. The combination of AI with 5G will be especially powerful, as it will fuel the rapid growth of segments such as video games and VR. The Outlook forecasts show video games' compelling combination of growth and scale, while VR will be the fastest-growing segment overall. 
• Trust and regulation remain pivotal, as personal data hygiene becomes key: With consumers moving to the centre of their own world of media experiences, their personal data — from the music they stream and the news they read to the products they buy — is taking a central role. In the emerging world, maintaining personal data hygiene is becoming key to the overall health of the E&M ecosystem. For companies, this goes beyond regulatory compliance, which is merely table stakes, and extends to building trust by behaving transparently and responsibly with customers’ data, ensuring the accuracy of news, and being sensitive to concerns around issues such as digital addiction.

Market Dynamics

Indian media and entertainment (M&E) industry grew at a CAGR of 10.90 per cent from FY17-18; and is expected to grow at a CAGR of 13.10 per cent to touch Rs 2,660.20 billion (US$ 39.68 billion) by FY23 from Rs 1,436.00 billion (US$ 22.28 billion) in FY18. India's media consumption has grown at a CAGR of 9 per cent during 2012-18, almost nine times that of US and two times that of China. The industry provides employment to 3.5-4 million people, including both direct and indirect employment in CY 2017. India's online gaming industry is expected to grow at a CAGR of 22 per cent between FY18-23 to reach Rs 11,900 crore (US$ 1.68 billion) in FY23 India’s advertising revenue is projected to reach Rs 1,232.70 billion (US$ 18.39 billion) in FY23 from Rs 608.30 billion (US$ 9.44 billion) in FY18. 

Recent development/Investments

 The Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B) sector (including Print Media) in the period April 2000 – March 2019 stood at US$ 8.38 billion, as per data released by Department for Promotion of Industry and Internal Trade (DPIIT). Dailyhunt, a regional language news aggregator run by Verse Innovation Pvt Ltd, will receive investment of US$ 60 million in a new funding round led by Goldman Sachs Investment Partners. As of September 2018, Twitter announced video content collaboration with 12 Indian partners for video highlights and live streaming of sports, entertainment and news. As of August 2018, PVR Ltd acquired SPI Cinema for worth US$ 94.42 million. In H12018, 5 private equity investments deals were recorded of worth US$ 115 million. The Indian digital advertising industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 32 per cent to reach Rs 18,986 crore (US$ 2.93 billion) by 2020, backed by affordable data and rising smartphone penetration. India is one of the top five markets for the media, content and technology agency Wavemaker where it services clients like Hero MotoCorp, Paytm, IPL and Myntra among others After bagging media rights of Indian Premier League (IPL), Star India has also won broadcast and digital rights for New Zealand Cricket upto April 2020. 

Government Initiatives

The Telecom Regulatory Authority of India (TRAI) is set to approach the Ministry of Information and Broadcasting, Government of India, with a request to fastrack the recommendations on broadcasting, in an attempt to boost reforms in the broadcasting sector. The Government of India has agreed to set up the National Centre of Excellence for Animation, Gaming, Visual Effects and Comics industry in Mumbai. The Indian and Canadian Government have signed an audio visual co-production deal to enable producers from both the countries exchange and explore their culture and creativity, respectively. The Government of India has supported Media and Entertainment industry’s growth by taking various initiatives such as digitising the cable distribution sector to attract greater institutional funding, increasing FDI limit from 74 per cent to 100 per cent in cable and DTH satellite platforms, and granting industry status to the film industry for easy access to institutional finance.

Road Ahead 

The Indian Media and Entertainment industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate. Growth is expected in retail advertisement, on the back of factors such as several players entering the food and beverages segment, e-commerce gaining more popularity in the country, and domestic companies testing out the waters. The rural region is also a potentially profitable target.

Indian Media & Entertainment Industry: Brief Introduction The Indian media and entertainment (M&E) industry has massive reach. The industry is largely driven by increased digitisation, growth of regional media, robust film industry and emergence of new media for content delivery. The Indian M&E industry is projected to grow 11.8 per cent to clock revenues worth Rs 91, 700 crore (US$ 16 billion) in 2013, according to an industry report. While conventional media such as television (TV), print and radio continue to be dominant segments, animation, visual effects, films and music are also posting strong progress owing to content and the benefits of digitisation. Moreover, the Government's drive towards digitalisation and addressability for cable television by 2014 is expected to provide a boost to direct-to-home (DTH) and digital cable growth. In a nutshell, alignment of entertainment, information and telecommunication is increasingly affecting India's overall M&E industry. Launch of more advanced media devices over the last decade has facilitated access of the same content on a variety of media platforms. This is helping in emergence of new business models and revenue streams, not only for content providers, but for a variety of new players becoming a part of the new media ecosystem. With all these factors well-in-place, the M&E sector certainly is marching towards new horizons of growth. Market Dynamics - The Indian M&E industry grew from Rs 728 billion (US$ 13.6 billion) in 2011 to Rs 820 billion (US$ 14.18 billion) in 2012; marking a growth of 12.6 per cent. - Total advertising expenditure (AdEx) across media stood at Rs 327.4 billion (US$ 5.66 billion) in 2012 while advertising revenues increased by 9 per cent. - Print continued to be the largest beneficiary, accounting for 46 per cent of the advertising pie at Rs 150 billion (US$ 2.59 billion). - Furthermore, television continued to be a dominant segment in the M&E industry while new media sectors (like animation/VFX) and Films and Music segments recorded strong growth. Radio is expected to witness great emancipation, post the roll-out of Phase 3 licensing, at a compounded annual growth rate (CAGR) of 16.6 per cent over 2012-17. Advertising, Online and Mobile Entertainment Today, mobile phones and internet go hand-in-hand in a way such that hardware (mobile) is nothing without software (internet). People, especially the youth, largely use mobile phones to access net, not only for entertainment, but also to make payments, gather information and transfer content. The internet video consumption market in India is growing at a humongous pace, with nearly 80 per cent more videos viewed in 2012 than in 2011. Similarly, internet and online portals are largely being used by marketers for airing their advertisements and awareness campaigns. Even though traditional media like television and newspapers continue to be the preferred media for seeking information and entertainment (as they garner over 80 per cent of the advertising market in India), the internet has been steadily increasing its share of the advertising pie. Spends on digital media have substantially increased from just over 1 per cent of total Indian advertising spend in the year 2005 to nearly 7 per cent in 2012. Search advertising accounted for about 38 per cent of the total online advertising spend, translating to about Rs 850 crore (US$ 147.05 million) while display advertising formed a sizeable 29 per cent (Rs 662 crore [US$ 114.52 million]) by March 2013, according to the findings of Digital Advertising in India report, by the Internet and Mobile Association of India (IAMAI) and IMRB International. Meanwhile, advertisements on mobile phones and tablets have grown from a 7 per cent share in FY 2011-2012 to 10 per cent of the Indian online ad market in FY 2012-2013, amounting to spends of around Rs 230 crore (US$ 40 million). Social media, email and video advertising constitute 13 per cent, 3 per cent and 7 per cent of the online advertising market, respectively. Investments - Indian television industry is ripe enough to accept niche channels that could cater to a specific audience, with specific tastes and choice. The intense pace of digitisation of distribution systems has removed the artificial limit on the number of channels that could be carried on our old analogue networks. This, in-turn, allows broadcasters to target specific audience with niche channels that would otherwise have been inefficient to distribute. A report prepared by KPMG with an industry body says that Advertisers will only benefit from the trend (of niche channels) "as infotainment channels focussed on sub-genres would help them reach a targeted audience. Some of the developments in the same are enumerated below: - Mahesh Samat is making a re-entry into the Indian television space by launching a new, genre specific, high definition, Hindi entertainment channel namely EPIC. Samat, former managing director of Walt Disney India, calls his launch ‘segment television’. He had incorporated Epic Television Networks Private Limited (EPIC), an integrated media company in 2012, with an idea to build segmented offerings in television entertainment. If things move according to plan, the channel would come on-air by August 2013. - Another example of ‘segment channel’ is NDTV Good Times, which was launched in 2007 and covered the lifestyle ambit with shows on weddings, food, fashion and travel. Channels based on similar concept are FoodFood, Zee Khana Khazana, Shagun TV and the upcoming EPIC Indian history-based channel. - Mexican edutainment theme park brand KidZania is set to see the soft launch of its property in Mumbai in June 2013, wherein it would offer variety of activities to suit multiple interests of children. The facility would also have various set-ups with specific role-playing activities that kids can take up as jobs. KidZania’s Indian franchisee, ImagiNation Edutainment India, in which Bollywood actor Shah Rukh Khan holds 26 per cent stake, has entered into a partnership with Birla Sun Life Insurance for an employment centre at the park. The new facility is being built at a cost of Rs 100 crore (US$ 17.3 million). - Group M and Optimystix Entertainment promoted, O4 Digital Media have entered a strategic alliance to create India’s first digital video-led Brand Solutions Company – MashUp. With this new venture, Optimystix Entertainment, India’s leading TV Production Company is shifting its focus to the rapidly growing online video space while Group M, India’s leading media agency network is enhancing its online offering to include strategic content solutions backed with metric and measurement. MashUp would be a content-led Brand solutions company with a key focus on ‘video led sustained engagement’ for brands – a unique concept in the Indian digital industry. Mash Up Brand Solutions will work with brands to connect with consumers on digital and social media platforms using customised and differentiated content to create rich involvement. This new launch is all set to revolutionise the online brand promotion and engagement space using the digital expertise and understanding of online consumers of the partners involved. Government Initiatives Indian Government intends to glorify and magnify the heritage of Indian films and promote the country as a Film Tourism Destination. With a view to substantiate the same, a composite delegation from the Ministry of Information and Broadcasting (I&B) and Ministry of Tourism (MoT), Government of India (GoI) participated in Cannes Film Festival 2013. With such initiatives, the GoI wants to promote Indian cinema as a sub brand of the 'Incredible India' campaign at various international film festivals like IFFI Goa, European Film Market, and Cannes Film Festival, to develop synergy between the tourism and film industries, and to provide a platform for facilitating partnerships between the Indian and global film industry. I&B ministry has also launched a multi-media initiative that aims to highlight the impact of Government policies at grassroots level across multiple sectors. The drive namely ‘Glimpses of the India Story’ would capture the journey of development in the last nine years across various sectors through the programmes and policies of the Government in India. The multi-media initiative would be aired on television, radio, print and outdoor publicity with the objective of informing and appraising the public to encourage greater participation in such efforts. Road Ahead India’s M&E industry is expected to get double in size to Rs.1.66 trillion (US$ 28.72 billion) by 2017, from Rs.82, 000 crore (US$ 14.19 billion) in 2012, which would be a compounded annual growth rate (CAGR) of 15.2 per cent, according to the Indian Media and Entertainment Industry Report 2013 by KPMG with an industry body. Also, the FM radio sector is projected to touch the Rs 2,300-crore (US$ 397.93 million) mark within three years of the roll-out of the much-awaited Phase III licences, according to estimates by CII and Ernst & Young. The sector is anticipated to close FY13 at Rs 1,400 crore (US$ 242.22 million) with 245 private FM stations.

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

Amazing Presentation on Indian Media Industry - March 2011

Please refer to the following link to download this report.. A latest presentation on Indian Media Industry - 2011


http://www.4shared.com/document/0askJU8D/Indian_Media_Scenario.html

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Dushyant Chauhan

Mobile Advertising Market Growing in India - 2011

According to a latest Report 2011, India continues to be at the top position contributing to mobile advertising, in the world. With a growth rate of more than 44%and 5792 million ad impressions served, India stands way ahead of its immediate next-Indonesia- which stands at a growth rate of 31% and scoring 3921 million ad impressions.

The first half of the year 2011, seemed to be very optimistic for the Indian mobile advertising industry considering the phenomenal growth that is being noted in Q1. Certainly brands are hopping on to the trend and making the most of it.
Here is the complete list of top nations:




















Some notable figures about the Indian mobile advertising industry are as follows:
•India reached its highest traffic level with 2.6 billion ads being broadcasted to 59.4 million users in the month of May, 2011.•There was an increase of 44% banner ads served to the Indian audiences on their mobile phones•India has the highest number of mobile game downloads with more than 14 million downloads in Q1 and a growth rate of 24% Q-on-Q.. 50% of these game downloads were of Cricket



















•The number of ad impressions served in India, has increase 5 times since October 2009, which the highest growth rate for any country














•Mobile Advertising is dominated by males with 84% males but more than 50 % of internet users on mobile are between that age of 20-24















•Mobile Contest (Gaming & Videos), Entertainment, Community & Search Portals are the top 4 channels. Surprisingly Nokia against Apple’s iPhone, Blackberry and Android based handsets, rules the handsets using mobile internet with 55.96% market share












Brands in Action:

Due to such a rise in mobile Internet, there was a noticeable increase in activities amongst brand advertisers, particularly in the sectors of automobile, financial services and consumer health sectors. Also advertisers and developers took advantage of cricket game downloads and launched cricket-themed applications, games and marketing campaigns. Brand campaigns involved awareness followed by lead generation activities.

Reasons of such a growth

1)Falling data rates
2)Availability of cheaper handsets
3)Heavy promotion of mobile internet
4)Better content on mobile
5)Reach of the telecom giants in India

India has a great scope for mobile advertising. In the last few years India has given has great revenue. Mobile advertising is no longer dominated by a handful of markets. Mobile internet advertising is now a pervasive force for marketers to spread their message, build brands and transact – a medium that we cannot afford to ignore. Also, an important fact that brand managers need to take into consideration is that feature based phones and not smartphones dominate mobile internet usage.”
In today’s scenario, it seems almost inevitable to ignore such a big and growing medium. The shift from TV to Computer and from Computer to Mobile is happening and brands are getting into the bandwagon as early as possible. It will be an interesting watch to see how brands leverage the industry and explore the opportunities.

Indian Media and Entertainment Industry - June 2011

India’s Media and Entertainment: Introduction

The Media and Entertainment (M&E) industry is one of the fastest growing sectors in India. The industry primarily involves the creation, aggregation and distribution of content, products and services, news and information, advertising and entertainment through various channels and platforms such as Television, Print, Radio, and Films.

Poised to grow at a compounded rate of 14 per cent to touch US$ 28 billion by 2015, the sector registered a growth of 11 per cent in 2010 over 2009 garnering US$ 14.54 billion in revenue, according to a report released by KPMG and a leading industry body in March 2011. The report estimates the industry to achieve 13 per cent growth rate in 2011. While television and print continued to dominate the Indian M&E industry, sectors such as gaming, digital advertising, and animation VFX grew at a faster rate and show tremendous potential in the coming years.

India’s Media and Entertainment: Growth Drivers

The industry’s strong growth potential is attributed to factors such as:

Growing potential of the regional markets
Increasing media penetration and per capita consumption, and
Rising importance of New Media (online media) driven by changing media consumption patterns
The Government’s thrust on digitisation and addressability for cable television, is expected to increase the pace of digitisation leading to tremendous growth in DTH and digital cable
In 2010, advertising spends grew by 17 per cent to US$ 5.93 billion and accounted for 41 per cent of overall industry size. Revenues from television advertising and subscription are expected to touch US$ 4.8 billion and US$ respectively during 2015, according to the report.

Television

Burgeoning channels and rich content have set Indian television industry into an attractive growth phase. The country is the third largest TV market in the world.

The television industry is expected to grow by 12.9 per cent cumulatively over 2009-14, according to PricewaterhouseCoopers (PwC). The industry grew by 15.5 per cent in 2010 and is slated to register a growth rate of 13 per cent in 2012. TV will remain the highest grosser of revenues and is expected to corner 45.7 per cent of the total ad pie this year, a further rise from 44.5 per cent in 2010.

Growing popularity of the direct-to-home (DTH) services is an interesting development in the Indian television industry. India had 23.1 million active subscribers by the end of 2010, as per Media Partners Asia, translating penetration of television homes to 16 per cent. India is also poised to become the world's largest DTH satellite pay TV market by 2015, with a projected 70 million subscribers.

The shipment of LCD, LED and Plasma TV models almost doubled in India in the January-March 2011 period driven by strong demand from cricket world cup, according to the latest DisplaySearch quarterly India TV shipment and forecast database. The total TV market in India for the first quarter was 3.7 million units, accounting for 41.5 per cent of the Asia-Pacific TV market. During this period, LCD TV shipments grew by 94 per cent reaching one million units.

Music

The music industry in India has always been dominated by film music. The industry is expected to grow at a CAGR of 28.6 per cent over 2010-14, reaching US$ 567.6 million in 2014, reports PwC.

With the advent of new technologies such as 2G and 3G, and increasing mobile penetration India’s music industry is scaling on a high note. Handset major Nokia launched its music store in India; Hungama announced the launch of two portals - Hungama.com and Artistaloud and Saregama too launched its music portal.

Radio

The size of the Indian radio industry was at US$ 171.38 million with 250 stations in the year 2009 and is expected to reach a size of US$ 360.32 million with over 700 stations by 2014, says an industry report. With regard to FM radio, 248 Channels were operational in the year 2010 and revenues to the government were to the tune of US$ 11.23 million dollars. In 2011, the radio industry is expected to clock revenues of US$ 226 million, as per the Pitch Madison Media Advertising Outlook 2011.

Animation and Social Media

Animation is another area in the entertainment sphere where India has already made a visible impact. Boosted by higher demand, the fast-growing Indian animation and gaming industry is expected to be worth US$ 2.5 billion by 2013, clocking a CAGR of around 35 per cent, according to global consultancy Deloitte.

Moreover, India is becoming a major hub to which quality animation work is being outsourced. Production for films including the Lord of the Rings, the Harry Potter series, The Chronicles of Narnia, and Spiderman 3 have taken place here during the last few years.

In 2010 social media gained significant popularity as a marketing and gaming platform.

Cinema and Digitisation

The film industry is monitored by the Indian Motion Picture Producers' Association (IMPPA), Film Television Producers' Guild of India, The Association of Motion Pictures and Television Programme Producers (AMPTPP) and The Film Writers Association (FWA).

The growth of Digitisation continues to be a key propeller the Indian M&E industry and this trend was even more pronounced in 2010. Film studios saw greater adoption of digital prints over physical and it was the first time in India that digital music sales surpassed that of physical unit sales, according to the report by KPMG and a leading industry body. Film producers and distributors preferred to release their films on digital platforms. In 2010, nearly 60 per cent of the print run was on digital and 40 per cent were physical prints.

Due to better content, increase in multiplexes, investment in research and continued cost corrections, Indian film industry is estimated to grow from US$ 1.85 billion to US$ 2.94 billion by 2015.

Multiplexes

Multiplexes are just emerging in India and there is a great opportunity for investing in theatres and multiplexes. The government’s approval for 100 per cent foreign direct investment (FDI) through the automatic route and extension of tax benefits has provided the required impetus to increase the theatre/multiplex penetration.

Internet

India is the third biggest internet market, with over 100 million internet user base and the amount of time spent on the Internet for an average user in the country is 16 hours a week. According to Google estimates, 40 million users access Internet through mobile phones and download 30 million applications.

Entertainment is driving the adoption of internet in rural areas with entertainment, communication and instant messaging being the main purposes for access, according to an Internet and Mobile Association of India (IAMAI) report. 41 per cent of the claimed internet users had used the internet for watching, downloading and listening to music or uploading or downloading pictures while 32 per cent also used the internet for email, chat and communication.

Print and Publishing

The newspaper market in India has grown at 13 per cent CAGR over the last five years to US$ 3.9 billion in 2010. It will continue on its growth trajectory at an estimated CAGR of around 12 per cent between 2010 and 2013 to reach US$ 5.9 billion in 2013, according to Ernst & Young India.

India’s Media and Entertainment: Recent trends and Investments

Anil Ambani’s Reliance Broadcast Network (RBN) has signed an equal joint venture (JV) with Luxembourg-based RTL Group SA, to launch two theme-based channels. RTL – a part of Europe’s largest media firm, Bertelsmann AG - operates over 40 television channels and 33 radio stations across 10 countries in Europe. The JV is planning to roll out the first channel under the new partnership by the middle of 2011.
NDS, a leading provider of technology solutions for the digital pay television industry, has firmed up plans to invest US$ 400 million for research and development work in India Publishers are launching niche publications, upper-end events, coffee-table books, news TV channels, special editions, and luxury magazines and adopting several other initiatives such as entering international alliances. With an upswing in advertisement revenues, hyper-local editions are becoming increasingly attractive media vehicles to target a specific segment, particularly for local advertisers.

- Amar Ujala has launched a Hindi-language youth magazine in 2011
- Similarly, Times Group has launched niche supplements and magazines to cater to upper SEC segments
- Dailies such as Hindustan Times, Navbharat Times and Hindustan have launched local editions in metros such as Gurgaon, Noida, and parts of Mumbai such as Borivali, Kandivali and Malad
- Zynga Games Network Inc., maker of the two most widely-played social media games globally, CityVille and FarmVille, has begun full life-cycle game development in India with the opening of Studio-
- HSBC Principal Investments, the private equity arm of the HSBC Group , has invested US$ 60 million for a minority equity interest in Avitel Post Studioz Limited, a Mumbai-based post-production and media entertainment technology company
India’s Media and Entertainment: Government Policies

Union Minister of Information and Broadcasting (I&B), Ms Ambika Soni has announced that the Ministry will consider setting up of a "Community Radio Fund". The issue will be taken up on a high priority with the key agencies such as the Planning Commission and concerned ministries. The setting up of such a fund would ensure the sustainability and enhanced outreach of the Community Radio Movement within the country. The modalities would be completed within a stipulated time frame.

The Ministry has also set up a committee to assess the current rating system for television rating points (TRP) of TV programs and has expressed concern over this current system of evaluation. The MIB has recommended increasing the sample size and switching to a more scientific approach for accurate data.

The I&B ministry has also endorsed the recommendation by the Telecom Regulatory Authority of India (TRAI) to enhance FDI ceiling for DTH TV, Internet protocol TV and teleport from 49 per cent to 74 per cent.

India’s Media and Entertainment: Road ahead

The second decade of this millennium presents a great opportunity for the M&E sector. The demographic profile of India favours higher spends on entertainment, with the consuming class forming a significant portion of the country's total households. New distribution technologies like DTH, Conditional Access System (CAS) and IPTV, hold a promising future for the media industry. Needless to mention, increasing digitalisation will changes the ways in which consumers view channels. These distribution platforms will assist broadcasters in giving direct access to consumers, thus facilitating the provision of not just routine content but also customised value added services (like video on demand). This is very likely to result in increased average revenue per user.

References: Press Releases, Report on Indian Media & Entertainment Industry, Journal of Arts, Science & Commerce by ResearchersWorld, Press Release by Internet And Mobile Association of India (IAMAI), Article publication by Ernst & Young

Mobile Internet in India

In a country like India where mobile penetration is much higher than PC penetration. Growth in internet would come more in the form of mobile internet than accessing internet via computers. In future mobile would be the medium for accessing internet. Technologies like 3G, Wimax would give users faster and more efficient internet access on mobile phones. Also India being one of the most competitive mobile phone market in terms of both hardware and software, so with more and more affordable handsets with internet accessing capabilities this industry is going to see some serious growth in terms of users (both internet on mobile and advertisers on wap sites. Also as per a report published in one of the news papers in India. "India has emerged as the second-biggest consumer of mobile Internet after the US, according to data from 15,000 mobile websites monitored by Google."

However, it accounted for only 5.9% of the 14 billion web pages seen on mobile phones in February.

The numbers represent statistics of only those countries where Google has a strong mobile advertising network, and may not have captured the full extent of the Chinese market, where Google continues to be weak.

In a separate briefing, Google’s India product head, Vinay Goel, said the number of mobile internet users has grown nearly five times in the last five years. “In fact the number of new data connections added globally this year will be higher on the mobile than on the PC,” he added.

According to him, around 25 million of the 500 million or so mobile users in India have paid data accounts and another 55-65 million use operator-provided data services. Goel said the number of Internet users on PCs in India is growing at around 50% a year and will reach 100 million by the end of 2010.

Compared to this, China added 100 million new users to the online community last year.

Interestingly, Indians take considerable pain to view the Internet on their phones, as evidenced by the devices they used. Unlike almost every other country where the highest number of usage came from a smartphone, in India, the top two devices were mid-range Nokia phones — the Express Music 5130 and the 3110c, both of which cost between Rs 3,500 and Rs 5,500.

The iPhone, the Rs 30,000 handset from Apple that accounted for nearly 40% of the global mobile web traffic in February, did not figure in the top 10 devices in India.

Nokia, which had just one presence in the world top 10 devices for mobile Internet, took all the 10 spots in India. Its devices also accounted for 59% of all mobile web traffic from India, followed by ‘Others’ and Sony Ericsson and Samsung.

Nokia’s N70, the only Nokia presence in world’s top 10 devices for generating mobile Internet traffic, was the most popular ‘smartphone’ in India, followed by other N Series devices such as N80, N73, N72 and the iPhone.

Globally, the share of Nokia’s Symbian operating system dropped for the second month running, hitting 18% in February from 19% in January, while iPhone’s share continued to remain stable at around 40%. However the numbers show large gains for devices based on the Android operating system, going from 16% in November to 24% in February.

The numbers also revealed that the iPhone was losing Internet share to the Android in a big way in its home market, the US. The share of iPhone’s internet traffic dropped from 55% in November to 44% in February. During the period, the share of Android phones rose from 27% to 42%.

The last four months have seen the increasing popularity of Android phones such as Motorola’s Droid and HTC’s Dream, which followed the iPhone on the popularity charts in the US.

You can also download this report on Mobile Internet in India


http://www.iamai.in/Upload/Research/MobileInternetinIndia_39.pdf

Media and Entertainment - May 2010

Media, the fourth estate, when entwined with the entertainment component represents an effective facet of consumers in India. Technology has played a key role in influencing the entertainment industry, by redefining its products, cost structure and distribution.

The Indian Media and Entertainment (M&E) industry stood at US$ 12.9 billion in 2009 registering a 1.4 per cent growth over last year, according to a joint report by KPMG and an industry chamber. Over the next five years, the industry is projected to grow at a compound annual growth rate (CAGR) of 13 per cent to reach the size of US$ 24.04 billion by 2014, the report stated. Additionally, the gaming segment is expected to be the fastest growing sector in the M&E industry. The sector showed a 22 per cent growth in 2009 and is expected to grow at a CAGR of 32 per cent to reach US$ 705.2 million by 2014, while the animation segment is expected to record a CAGR of 18.7 per cent in the next five years as per the joint report.

Television

According to the figures released by an industry chamber in March 2010, the Broadcast and Television (TV) sector comprised over 43 per cent of the overall M&E sector wherein the total size of the television sector accounted for US$ 5.7 billion. The broadcast sector is on a strong growth path and the outlook for advertisement expenditure is on a rise for the television sector.

A report by research firm Media Partners Asia (MPA) stated that India is poised to become the world's largest direct-to-home (DTH) satellite pay TV market with 36.1 million subscribers by 2012, overtaking the US. Furthermore, in its report titled 'Asia Pacific Pay-TV and Broadband Markets 2010', MPA said India's DTH subscriber base will increase from 17 million in 2009 to 45 million by 2014 and 58 million by 2020.

Anil Dhirubhai Ambani Group's company, Reliance MediaWorks (RMW) has signed a memorandum of understanding (MoU) with IMAGICA Corp of Japan for film processing services. Under this alliance, RMW, on behalf of IMAGICA, would provide film restoration, image processing and enhancement and high definition (HD) conversion services to the Japanese clients. IMAGICA Corp would work with RMW's Los Angeles-based subsidiary Lowry Digital, which has handled projects for leading studios like Walt Disney, Paramount Pictures, MGM and 20th Century Fox. RMW would be doing the processing job for IMAGICA either in India or in California in the US.

Music

The music industry is a vast entity and over the years it has witnessed change significantly. The potential of the Indian music industry can be better understood from its size estimated at around US$ 182.9 million in 2010, up from US$ 160.9 million in 2008, portraying a growth of 14 per cent during the reporting period. It is expected to grow at a CAGR of 16 per cent over 2010-14 to reach US$ 379.1 million.

Radio

Radio is considered a mass medium. It ideally suits the Indian environment - leveraging its twin advantages of wide coverage and cost effectiveness. Currently, the sector generates annual revenues worth US$ 49.5 million and is growing at around 20 percent annually, according to the joint report by KPMG and an industry chamber.

To exploit the true potential of this sector, frequency modulation (FM) radio needs to step up its penetration to at least 300 stations in 100 cities, which would further attract an investment of US$ 899,160 per radio station frequency, the total additional investment required has been estimated at US$ 247.3 million, according to industry sources.

Radio is expected to grow at a CAGR of 16 per cent over 2010-14 and reach to a size of US$ 361.4 million by 2014.

Globally, radio is enjoying a revival, based on the support of the youth, with players like Radio Mirchi emerging out as one of the clear leaders with over 41.2 million listeners, as per the recently published Indian Readership Survey (IRS) quarter 1 (Q1), 2010.

VedantiNET, the Broadband and application service provider of Guwahati promoted by SM Computer Consultants Pvt Ltd, has launched the service of first Internet Radio of Assam, ‘Radio Assam', in the city.

Advertising

A report by consultancy firm KPMG stated that the US$ 5.2 billion advertising industry is set to grow at a compounded annual growth rate (CAGR) of 14 per cent in 2010, in comparison to the last year. KPMG observed that online advertising will grow about 30 per cent per annum, establishing itself as the fastest growing advertising medium. While elaborating further it stated that the growth in regional advertising is partly driven by new sectors such as education, hospitality, jewellery and real estate which often have local brands and therefore prefer to advertise through local channels.

Emphasising on the Internet advertising industry, KPMG said the US$ 185 million industry would encourage both multinational companies and local brands to focus on their marketing strategies.

Cinema

Films Division has been motivating the broadest spectrum of the Indian public with a view to enlisting their active participation in nation building activities.

According to the joint report by KPMG and an industry chamber, the film industry contracted 14 per cent growth in 2009 wherein the industry is projected to grow at a CAGR of 9 per cent to touch an estimated amount of US$ 3.02 billion over the next five years. Growth drivers for the sector would include expansion of factors like an increase in the number of multiplex screens, digital screens facilitating wider releases, higher cable and satellite revenues, improving collections from the overseas markets and supplementary revenue streams like DTH, digital downloads, etc, which are expected to emerge in future.

Reliance MediaWorks Ltd has signed a deal with UFO Moviez to establish a gateway for digital film releases on Indian screens. The pact will enable the firm to combine UFO Moviez' digitisation technology with its programming expertise and digital cinema experience as stated by Reliance Mediaworks.

Print/Publishing

The print media industry is projected to grow at a CAGR of 9 per cent and targets to reach around US$ 5.93 billion by 2014, according to the joint report by KPMG and an industry chamber.

Jagran Prakashan of Jagran Group, which publishes one of India's largest read language dailies, stated that it will acquire all the publications of Mid-Day Multimedia in a stock deal valued nearly at US$ 40 million.

Foreign investment, including foreign direct investments (FDI) and investment by non-resident Indians (NRIs)/person of Indian origin (PIO)/foreign institutional investor (FII), up to 26 per cent, is permitted for publishing of newspapers and periodicals dealing with news and current affairs under the Government route.

FDI policy for publication of Indian editions of foreign magazines dealing with news and current affairs is:

Foreign investment, including FDI and investment by NRIs/PIOs/FII, up to 26 per cent, is permitted under the Government route.
'Magazine', for the purpose of these guidelines, will be defined as a periodical publication, brought out on non-daily basis, containing public news or comments on public news.
Foreign investment would also be subject to the Guidelines for Publication of Indian editions of foreign magazines dealing with news and current affairs issued by the Ministry of Information and Broadcasting (I&B) on Publishing/printing of Scientific and Technical Magazines/specialty journals/ periodicals 100per cent FDI is permitted under the Government route.

Theatre

Mexico-based multiplex operator Cinepolis plans to set up 40 screens over the next 12months in India, which could entail an investment of US$ 28 million.

Milan Saini, Head and Managing Director, Cinepolis India Country stated that "India is a huge opportunity for us as the market is under-penetrated. We plan to set up 40 screens over the next 12 months across seven properties in cities like Mumbai, Bangalore, Chennai and Hyderabad."

Digital Media

The digital technologies and their innovative applications have changed the entertainment sector considerably, especially the content production and its quality. Internet has also emerged as the latest revenue stream and has become one of the fastest growing advertising medium and has made a significant impression on the entertainment industry.

Officials in the Information and Broadcasting Ministry have planned a roadmap for making broadcasting operations completely digital. The Telecom Regulatory Authority of India (TRAI) has suggested a three-stage process for digitisation, wherein tier one cities would be covered by 2013, tier two cities by 2014 and tier three cities by 2017. They further stated that the digital transmission helps in enhancing the audio and picture quality.

Madison Media bagged the media buying account of US carmaker General Motors (GM), estimated at more than US$ 22.1 million. GM, the third biggest ad spender among auto companies in the country after Maruti Suzuki and Hyundai Motor, has given the account to Madison for a period of three years.

Government Initiatives

The Government has initiated the following measures:

- The government has allotted US$ 50.13 million in the current Five-Year Plan (2007-2012) for various development projects for the film industry. The funds will be utilised to set up a centre for excellence in animation, gaming and visual effects
- To offer better audio quality and sharper picture to millions of its viewers, public broadcaster Doordarshan plans to go completely digital by 2017

According to the Consolidated Foreign Direct Investment (FDI) Policy document released by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India, foreign investment, including foreign direct investments (FDI) and investment by non-resident Indians (NRIs)/person of Indian origin (PIO)/foreign institutional investor (FII), up to 26 per cent, is permitted for publishing of newspapers and periodicals dealing with news and current affairs under the Government route.

The Consolidated FDI Policy document brings forth the following guidelines for the M&E industry:

Terrestrial Broadcasting FM (FM Radio): Foreign investment, including FDI, NRI and PIO investments and portfolio investments are permitted up to 20 per cent equity for FM Radio's Broadcasting Services with prior approval of the Government subject to such terms and conditions as specified from time to time by Ministry of Information and Broadcasting for grant of permission for setting up of FM radio stations

Cable Network: Foreign investment, including FDI, NRI and PIO investments and portfolio investments are permitted up to 49 per cent for cable networks under Government route subject to Cable Television Network Rules, 1994 and other conditions as specified from time to time by Ministry of Information and Broadcasting (I&B)

Direct–to-Home: Foreign investment, including FDI, NRI and PIO investments and portfolio investments are permitted up to 49 per cent for Direct to Home under Government route. Within the limit of 49 per cent, FDI will not exceed 20 per cent. This will be subject to such guidelines/terms and conditions as specified from time to time by Ministry of Information and Broadcasting (I&B)

The total direct and indirect foreign investment including portfolio and foreign direct investment in Headend-In-The-Sky (HITS) Broadcasting Service shall not exceed 74 per cent. FDI upto 49 per cent would be on automatic route and beyond that under government route. This will be subject to such guidelines/terms and conditions as specified from time to time by Ministry of Information and Broadcasting (I&B)
FDI policy in the Up-linking of TV Channels is as under:

Foreign investment of FDI and FII up to 49 per cent would be permitted under the Government route for setting up Up-linking HUB/ Teleports;
FDI up to 100 per cent would be allowed under the Government route for Up linking a Non-News & Current Affairs TV Channel;

Foreign investment of FDI and FII up to 26 per cent would be permitted under the Government route for Up-linking a News & Current Affairs TV Channel subject to the condition that 48 the portfolio investment from FII/ NRI shall not be "persons acting in concert" with FDI investors, as defined in the SEBI(Substantial Acquisition of Shares and Takeovers) Regulations, 1997

Going Global

Reliance Big Entertainment, owned by Anil Ambani, has bought half of UK's games and publishing company, Codemasters. The investment is expected to open up the fast-growing Indian market for Codemasters, in order to assist Reliance tap the potential of games which is vividly catching the fantasy of the growing local interest. Rod Cousens, CEO of Codemasters stated that the deal will help the company realise the full potential of their game coding and online excellence across various platforms, especially in the world's fastest-growing markets.