Entertainment March 2014

8/10/2019 Entertainment March 2014

http://slidepdf.com/reader/full/entertainment-march-2014 1/43





Third largest TV market • With 146 million television households in 2011, India stood as the third largest televisionmarket after the U.S. and China

One of the largest

broadcasting market

• India has one of the largest broadcasting industries in the world with approximately 800satellite television channels, 245 FM channels and more than 100 operational communityradio networks

Rising no. ofsubscribers

• The total subscriber base for Indian television industry is expected to increase to 173million by 2016 from 95 million in 2009

Fast growing animationindustry

• The Indian animation industry is expected to expand at a CAGR of 15.8 per cent toUSD1.4 billion by 2017 from USD650 million in 2012

Source : Planning Commission, Aranca Research



Growing demand

Source: KPMG report 2012, Aranca ResearchNotes: AGV - Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition,

CAGR - Compound Annual Growth Rate, FDI - Foreign Direct Investment, E - Estimate

Robust demand• Rising incomes and evolving

lifestyles have led to higherdemand for aspirational productsand services

• Higher penetration and a rapidlygrowing young population coupled

with increased usage of 3G andportable devices would augmentdemand

Attractive opportunities• Industry is set to expand at a

CAGR of 15.2 per cent over2012 – 17, one of the highest ratesglobally

• Television and AGV segmentsexpected to lead industry growth;opportunities in digitaltechnologies as well

Policy support• Policy sops, increasing FDI limits• Measures such as digitisation of

cable distribution to improveprofitability and ease of institutionalfinance

• Increasing liberalisation and tariffrelaxation

Increasing investments• Higher FDI inflows• Increasing M&A activity

• More big-ticket deals such as WaltDisney- UTV, Sony-ETV and Zee-Star

• Entry of big players across allsegment of industry

2012

MarketSize:

USD15.1billion

2017E

MarketSize:

USD30.5billion

AdvantageIndia



Source: KPMG Report 2013, Aranca ResearchNote: VFX - Visual Effects

Entertainment

Television

Gaming

Animation& VFX

Out OfHome(OOH)

MusicDigital Advertising

Radio

Films

Print







Growth of television industry (in 2011)

Source : KPMG Report 2013, Aranca ResearchNote: E - Estimates

With a growth rate of 15.0 per cent in 2012, Indian television industry stood second when compared with BRIC and othermajor developed economies

Currently, the television industry in India derives the major share of its revenue from subscription segment (66.0 per cent)and the rest from advertising (34.0 per cent)

The revenue share from subscription segment is expected to reach 72.0 per cent by 2017, driven by higher penetration ofsubscription television

Television segments

2.1%

3.6%

10.6%

14.4%

15.8%

22.5%

United States

UnitedKingdom

China

Russia

India

Brazil

34.0% 28.0%

66.0% 72.0%

2012 2017E

TV advertising Subscription revenues



Industry size of emerging segments (USD millions)

Source : KPMG Report 2013, Aranca ResearchNotes: VFX- Visual Effects; F - Forecast,CAGR - Compound Annual Growth Rate

Radio, Animation & VFX, Gaming and Digital advertisingare also emerging as fast growing segments

The total market share in terms of revenue is expected toreach 15.2 per cent by 2017 from 12.6 per cent in 2012

During 2012 – 17, these segments are expected to developat a CAGR of:

Digital advertising (32.6 per cent)

Gaming (22.9 per cent)

Radio (17.1 per cent)

Animation (23.9 per cent)

100

400

700

1000

1300

1600

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3 F

2 0 1 4 F

2 0 1 5 F

2 0 1 6 F

2 0 1 7 F

Radio Animation and VFXGaming Digital Advertising



Advertising revenue forecast

Source : KPMG Report 2013, Aranca ResearchNotes: OOH - Out Of Home, F - Forecast

Total spending on advertising across all media stood at USD5.9 billion, accounting for 41 per cent of the total industryrevenue in 2012

Advertising revenue is expected to touch USD11.6 billion by 2017 from USD5.9 billion in 2012

Print is the largest contributor, accounting for 46 per cent of the advertising share

Advertising revenue share (2012)

38%

46%

5%

7%4%

TV

Print

OOH

Digital Advertising

Radio

5.05.1

4.95.7 5.5 5.9 6.6

7.5

8.7 10.0

11.6

-10%

-5%

0%

5%

10%

15%

20%

0

2

4

6

8

10

12

14

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3 F

2 0 1 4 F

2 0 1 5 F

2 0 1 6 F

2 0 1 7 F

Total revenue- (USD billion) Growth (%) -RHS



Source : Company Websites, Business Week, KPMG report 2012 Aranca Research

Note: M&E - Media and Entertainment

Company Business description

Star India Pvt Ltd• Fully owned subsidiary of News Corporation

• Portfolio includes 40 channels in seven languages across various categories such as soaps, reality, news and films

• Also manages a portfolio of business ventures including DTH operator Tata Sky, cable system Hathway, channel

distributor STAR Den, news channel operator MCCS, the film production and distribution business Fox STAR StudiosIndia and STAR CJ Home Shopping

Zee Entertainment Enterprises Ltd• Fully owned subsidiary of Essel Group and first listed media company in India

• One of the largest producers and aggregators of Hindi programming in the world

• An estimated reach of more than 670 million viewers across 169 countries

• Pioneer of television entertainment industry in India; launched Zee TV- the country’s first Hindi satellite channel

• Range of businesses across the value chain in the M&E industry

Multi Screen Media Pvt Ltd• Fully owned subsidiary of Sony Pictures Entertainment

• Comprises of Sony Entertainment Television (SET) and SAB, leading Hindi general entertainment televisionchannels; MAX, a movies and special events channel; and PIX, a channel that airs Hollywood movies

• Its programming spans across various genres including drama, reality, comedy, horror, Bollywood and live events





Source : Company Websites, Business Week, Aranca Research


Yash Raj Films Studios• The only privately owned film studio in India

• Apart from film production, the company has also expanded into distribution of films and music, home entertainment,production of television software, ad films, documentaries and private label music production

• The company launched a youth films studio Y-Films in 2011 to connect with the large young population of the country

Eros International Media Ltd• Strong distribution network spanning across 50 countries and over 27 dubbed foreign languages

• One of the largest content owners in the industry having a film library of over 2600 films, thus ensuring stable, recurringcash flows

• The company is diversifying into Marathi, Punjabi, Tamil and other regional language films to leverage upon thegrowing demand for regional cinema

Red Chillies Entertainments Pvt Ltd• Founded in 2002 as a film production house, the company has branched into TV shows and advertisement, visual

effects and multi-media production equipment leasing

• It also owns the Kolkata Knight Riders cricket franchise in the Indian Premier League



Source: Company Websites, Business Week, Aranca Research


Music Bharti• A wholly owned subsidiary of Bharti Airtel

• The largest music company in terms of revenues

• Provides mobile-based value-added music services (VAS) such as hello tunes, call back tunes, music on demand,Mirchi mobile and Airtel radio

Saregama India Ltd• The company owns the largest music archives in India, one of the largest in the world

• It uses the music labels Saregama, RPG Music and HMV

• The company is making efforts to digitise its catalogue to make inroads into the digital music market and counterdeclining physical music sales

Super Cassettes Industries Ltd• The company owns the rights to over 2,000 video and 35,000 audio titles, comprising of nearly 24,000 hours of music

• The company has diversified into film production, consumer electronics and mobile phones manufacture

Tips Industries Ltd• The company owns 3,500 titles of which a minimum of 25 have been sold over a million copies, with another 10

selling over 10 million copies

• Since 1981, Tips has the highest number of gold and platinum discs to their credit in India

• Tips also holds soundtrack copyrights of over 50 Hindi movies and has also ventured into film production

• The company’s distribution channel serves more than 1,000 wholesalers across country



Television

• Television penetration in India is at about 66 per cent and penetration is expected to reach72 per cent by 2017

• The government announced the digitisation of cable television in India in four phases,which would be completed by the end of 2014

• The direct-to-home (DTH) subscription is growing rapidly driven by content innovation andproduct offerings

• The subscription share to the total revenue is expected to grow to 69 per cent by 2016

Print

• Considering the huge potential in regional print markets, national advertisers are enteringthese markets to increase their advertising share

• Increasing income levels and evolving lifestyles have led to robust growth in nichemagazines segment

• Increasing literacy levels leading to a rise in the readership base

Film

• Growth to be fuelled by multiplex chains, increasing footfalls of consumers and higher

quality content• Increasing share of Hollywood content in the Indian box office• 3D cinema is driving the growth of digital screens in the country• The Indian film industry is largest producer of films globally with 400 production houses

and corporate houses involved in film production

Source : KPMG Report 2012, Economic Times, Aranca ResearchNotes: DTH - Direct to Home, 3D - Three Dimension



Animation, Gaming andVFX (AGV)

• Growing focus on the ‘kids genre’ and rise in dedicated channels for them• Surge in 3D/HD animated movies in theatres and use of animation and VFX in TV

advertising and gaming• Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian

players

Radio

• Increasing FM enabled radio phones, mobiles and car music systems• During 2010, there were a total of 245 channels operating across India• Government introduced favourable guidelines for expansion of the 3rd phase of FM radio

broadcasting services, which will bring 294 towns and 839 stations under FM coverage• Liberalisation of policy on community radio took place in 2008 which led to 29 community

radio stations getting operational in the country

Music

• The Indian music industry is a consortium of 142 music companies• Players are looking at new ways and mediums to monetise music, such as utilising social

media to promote music• Mobile phones, iPods and mp3 players – devices that enable music on-the-go – are

becoming the primary means to access music• Digital music on mobile continues to drive music industry revenue

Source : KPMG Report 2012, Economic Times, Aranca Research



Source : Aranca Research

Growing demand

Inviting Resulting in

Growing demand Increasing investmentsPolicy support

Higher realincomes and

changing lifestyles

Falling prices,increasingpenetration

Growing younguser base with high

access totechnology

Policy sops,favourable FDI

climate

Policies to enhancegrowing segmentslike animations and

gaming

Increasingliberalisation,

tariff relaxation

Higher FDI inflows

Increasing M&Aactivity

Increasingparticipation of big

players



Rising per-capita income in India (USD)

Source: IMF, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate

F - Forecast

Incomes have risen at a brisk pace in India and will continuerising given the country’s strong economic growthprospects. Nominal per capita income is estimated (IMF) tohave recorded a CAGR of 10.2 per cent over 2000 – 12

Rising incomes, with its positive impact on the consumerbase, will be the key growth driver for the entertainmentindustry (across the country)

As the proportion of ‘working age population’ in totalpopulation increases, per capita income and GDP areexpected to grow higher

-5%

0%5%

10%

15%

20%

25%

30%

0

500

1,000

1,500

2,000

2,500

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3 F

2 0 1 4 F

2 0 1 5 F

2 0 1 6 F

2 0 1 7 F

2 0 1 8 F

Per Capita income, USD, LHS Growth



Indian residents shifting from low-income to high-income groups

Source: McKinsey Quarterly Report, Aranca Research

Apart from the impact of rising incomes, widening of theconsumer base will also be aided by expansion of themiddle class, increasing urbanisation, and changinglifestyles

The entertainment industry will also benefit from continuedrise in the propensity to spend among individuals; empiricalevidence points to the fact that decreasing dependency ratioleads to higher discretionary spending on entertainment

1 3 72 617

1225

2935

40

3250

2615

2008 2020 2030Globals (>18412.8) Strivers (9206.4-18412.8)Seekers (3682.5 - 9206.4) Aspirers (1657-3682.5)Deprived (<1657)

Million Household,100%



Television

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

• FDI limit increased from 74 per cent to 100 per cent in cable and DTH satellite platforms in2013

• No restriction on foreign investment for uplinking and downlinking of TV channels otherthan news and current affairs

Film

• Co-production treaties with various countries such as Italy, Brazil, UK and Germany toincrease the export potential of the film industry

• Granted ‘industry’ status in 2001 for easy access to institutional finance• FDI upto 100 per cent through the automatic route has been granted by government• Entertainment tax to be subsumed in the GST; this would create a uniform tax rate regime

across all states and will also reduce the tax burden

Radio

• FDI limit in radio increased to 49 per cent from 26 per cent in 2013• Private operators allowed to own multiple channels in a city, subject to a limit of 40 per

cent of total channels in the city.• Private players allowed to carry news bulletins of All India Radio• Further boost may be given to the radio sector by charging license fees on the basis of

‘net income’ so as to provide relief to loss making radio players

Source : Aranca ResearchNote: FDI - Foreign Direct Investment

GST - Goods and Services Tax



Print

• FDI/NRI investment of upto 49 per cent in an Indian firm dealing with publication ofnewspaper and periodicals

• FDI/NRI investment of upto 49 per cent in publications of Indian editions of foreignmagazines

• FDI/NRI investment of upto 49 per cent in publications of scientific and technicalmagazines/specialty journals/periodicals

Music

• Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthensthe royalty claims of musicians, lyricists and others in the field

• Policies are adopted against digital piracy and file-sharing; steps have been taken to blockillegal music websites

• Adoption of revenue sharing model by Copyright Board requiring FM radio companies toshare 2 per cent of their net advertising revenues with music companies

Animation, Gaming and

VFX (AGV)

• 100 per cent FDI allowed in the sector through automatic route provided it is in compliancewith Reserve Bank of India guidelines

• The government has carved out a National Film Policy to tap the potential of the filmsector mainly for the animation segment

Source : PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research



Source : Digital Dawn, KPMG Report 2013, Aranca Research

In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ fordigitisation of cable television networks by 2014

The cable operators under the digitisation regime are legally bound to transmit only digital signals, while the customer canaccess the subscribed channels through a set-top box

The number of DTH subscribers in India is expected to increase from 44 million currently to 200 million by 2018

The entire process of digitisation will be carried out in four phases

Phase City/Region Date for switchover*

Phase 1

Delhi 31 st October 2012

Mumbai 31 st October 2012

Kolkata 15 th January 2013

Chennai Not completed

Phase II 38 cities in 15 states 31 st March 2013

Phase III All remaining urban areas 30 th November 2014

Phase IV Rest of India 31 st March 2015



Source : Digital Dawn, KPMG Report 2013, Aranca Research

Advantages of Digitisation

Higher consumer preference, which lacked in the former Conditional Access System (CAS)

Consumers will be able to select content of their choice as well as indefinitely store and access digital content

The digital platform in films also includes the ‘video -on- demand’ feature on television

Higher transparency; subscriber declaration level is expected to increase to 100 per cent under post-digitisation regime ascompared to 15 – 20 per cent as declared by local cable operators (LCOs) to multiple system operators (MSOs)

Stake-holder revenues share Pre-digitisation Post-digitisation

Consumer ARPU 100 100

Local Cable Operators (LCOs) 65 – 70 35 – 50Distributor 5 0 – 5

Multiple System Operators (MSOs) 15 – 20 25 – 30

Broadcaster 10 – 15 30 – 35



Average revenue per user per month (USD)

Source: KPMG Report 2013, Aranca ResearchNote: F - Forecast

Presence of analog cable and higher contribution has led tolower Average Revenue Per User (ARPU) level, which isaround USD3.0 for a digital pay television

However, with higher scope of introduction of new andniche channels with digitisation, ARPU levels are expectedto increase

3.03.1 3.1

3.13.12.9

3.1

3.33.7

4.2

4.6

2011 2012 2013F 2014F 2015F 2016F

Analog Digital



Source: KPMG Report 2013, Aranca Research

Consolidation will be the major route to grow inorganicallyfor entertainment companies in order to expand theirportfolios and enter into new regions

A few big deals have come about, the most notable onesbeing Network 18 Media & Investments Limited, Eenadu TVand Sony-multi screen Media, with a combined investmentof 666 million

Mergers and Acquisitions (M&A) deals in 2012

Acquirer Target Deal dateDeal value

(USDmillion)

Network 18 Media &Investments Limited Eenadu TV January 395

Jagran PrakashanLimited

NaiDunia MediaPrivate Limited April 44

The Aditya BirlaGroup

Living MediaIndia Limited May 70

Sony Corporation Multi ScreenMedia June 271

Sahara India PariwarDigicable

Network (India)Private Limited

August 52

PVR Limited Cinemax IndiaLimited November 119



Cumulative FDI inflows into Information andBroadcasting from April 2000 (USD billion)

Source: DIPP, Aranca ResearchNotes: DIPP - Department of Industrial Policy and Promotion,

FY13* - Data from April 2012 - August 2013

FDI inflows into the entertainment sector between April2000 and August 2013 stood at USD3.5 billion

By August 2013, the share of FDI in ‘Information andBroadcasting’ was 1.7 per cent of total FDI inflows into thecountry

Demand growth, supply advantages and policy support arethe key drivers in attracting FDI

0.6

1.3

1.82.2

2.9

3.5

FY08 FY09 FY10 FY11 FY12 FY13*



Source : Company Annual Reports, Aranca Research

Television content

Motion pictu res

Games content

Broadcasting

Television content

Motion pictures

Games content

Broadcasting

Started as acontent providerfor Doordarshan

Ventured intointernetcontent

creation andaggregation

Launched IPO asUTV Software

communicationsLtd

LaunchedHungama TV

Disney becomes amajority share holder with

a stake of 32.1 per cent

Deal with Disneyto dub its content

into Indianlanguages

AcquiresIndiagames Ltd,enters gamingsoftware and

content

Became world’sfirst company torecord over 100

million downloadson Nokia store

1990 1996 2000 2004 2005 2007 2008 2012

Interactive



Source : Company website, Aranca Research

1985 1993 2000 2003 2005 2007 2008 2012

‘SUN TV’ islaunched with

daily three hoursof programming

Launches SUNDirect to provide

DTH services

Launches threepay channels andfour ad-free action

movie channels

Starts its first FMChannel

‘Sumangali FM’

Direct to Home

Motion pictures

Radio

Newspaper

Magazine

Broadcasting

Founded asSumangali

Publications

Launches a slew ofother channels in

various South Indianlanguages

AcquiresDinakaran

newspaper, TamilNadu’s leading

daily

Enters FilmProduction and

Distributionthrough ‘SUN

Pictures’



Adlabs Imagica

Source: Company website, Aranca Research

Adlabs Imagica, a flagship project of Adlabs EntertainmentLtd is a 300-acre entertainment theme park located on theMumbai – Pune expressway

It is India's most elaborate theme park for a total value ofUSD294 million

The park features 21 attractions including rides, film showsand live acts drawn from Indian mythology and Bollywoodcinema

The total footfall is expected to be around 2-3 million peryear

Salient features

• Total area - 300 acre

• Total cost - USD294 million

• Visitor capacity - 10,000 to 15,000 visitors per day

• Ticket cost - Weekday (USD23) weekends (USD28)



Dish TV revenues (USD million)

Source: Company website, Aranca Research

Note: CAGR - Compound Annual Growth Rate

Dish TV is Asia's largest and India's first direct-to-home orcommonly known as DTH company

Dish TV India Limited, a division of Zee Network Enterprise(Essel Group Venture) provides DTH satellite television

Dish TV ranks 5 th on the list of media companies in theFortune India 500

The company’s revenue rose at a CAGR of 36.1 per cent toUSD408.4 million in FY13 87.4

149.4

233.7

320.9

420.5 408.4

FY08 FY09 FY10 FY11 FY12 FY13

CAGR: 36.1 %



15.1 16.8

19.4

22.726.4

30.5

2012 2013F 2014F 2015F 2016F 2017F

Market size (USD billion)

Source: KPMG Report 2013, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate

F - Forecast

Over 2012 – 17, the total market size is expected to expandat a CAGR of 15.1 per cent to USD30.5 billion

The next five years will see digital technologies increasetheir influence across the industry leading to a sea changein consumer behaviour across all segments

CAGR: 15.1%



Size of major industry segments (USD billion)

Source: KPMG Report 2013, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate

F - Forecast

Television will continue to be the lead contributor to theoverall industry growth. The segment is estimated to expandto USD15.6 billion by 2017 (CAGR of 18.1 per cent since2012)

Radio, Animation & VFX, Gaming and Digital advertisingare emerging as the fast growing segments

During 2012 – 17, these segments are expected to expand ata CAGR of:

Digital advertising (32.6 per cent)

Gaming (22.9 per cent)

Radio (17.2 per cent)

Animation (23.9 per cent)

0.0 5.0 10.0 15.0

Music

Radio

Gaming

Out of Home

Digital Advertising

Animation and VFX

Films

Print

Television

2017F 2012



Size of the animation industry in India

(USD Billion)

Source : KPMG Report 2013, Aranca ResearchNotes: F – Forecast, VFX - Visual Effects, CAGR - Compound Annual Growth Rate

Animation encompasses three key segments; these are ‘Animation Entertainment’, ‘Visual Effects (VFX)’ and ‘Custom Content Development‘

India’s animation industry has been growing steadily; from a size of USD0.4 billion in 2008, the sector is forecasted to posta CAGR of 15.8 per cent to reach USD1.3 billion over 2008 – 17

Share of sub- segments in India’s

animation industry (2012)

16%

20%

64%

Animation VFX

AnimationEntertainment

Custom ContentDevelopment

0.40.4

0.50.7 0.6

0.7 0.80.9

1.1

1.3

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

2 0 1 2

2 0 1 3 F

2 0 1 4 F

2 0 1 5 F

2 0 1 6 F

2 0 1 7 F

CAGR: 15.2%



Source : ‘’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca ResearchNotes: * We have portrayed the intensity of opportunities in each segment based on the extent

of Indian players’ current presence in that segmentE - Estimate

Gaming can be classified under three segments – ‘Personal Computer Games (PC)’, ‘Mobile Games’, ‘Console Games’ and ‘Online Games’

Revenues from Console Gaming are expected to reach USD343.8 million by 2017E from USD144.5 million in 2012.Revenues from Mobile and PC & Digital TV are expected to grow to USD329.1 million and USD96.9 million by 2017 fromUSD104.2 million and USD32.9 million, respectively in 2012

Opportunities* for Indian gaming firms across the segment’s value chain

ConceptCreation

Pre-production Development Post- Productionand Testing

Final Testing

Console Very Strong Strong Good Good Good

Mobile Good Good Good Good Good

PC Strong Strong Good Good Good

Online Strong Strong Good Good Good



Number of subscribers (Millions)

Source: KPMG Report 2013, Aranca Research

Note: F - Forecast

The share of digital cable as well as DTH service providersis expected to increase post-digitisation

Total subscription for DTH is expected to increase to 90million subscribers by 2017 from 28 million in 2010

Total subscription for digital is expected to increase to 81million subscribers by 2017 from 5 million in 2010

68 68 58 4831

10 5 3

5 6 19 32 4967 74 81

28 37 44 52 63 76 8490

78

99

89

98

2010 2011 2012 2013F 2014F 2015F 2016F 2017F

Analog Digital DTH DD Direct



Television

• Television is projected to garner a share of 51 per cent in the television pie by 2017 (asaddressable digitisation is expected to cover the entire country by then)

• Television advertisement revenue is also expected to witness robust growth and increasefrom USD2.3 billion in 2012 to USD4.4 billion by 2017

Animation

• The Indian animation industry was worth USD650 million in 2012 and is expected to

expand at a CAGR of 15.8 per cent to USD1.4 billion by 2017• Growth in international animation films, especially 3D productions, and the subsequent

work for Indian production houses will help growth in this segment

Print

• The print industry was worth USD4.1 million in 2012 and is expected to develop at aCAGR of 8.7 per cent to USD6.3 billion by 2017

• Newspapers and niche magazines are likely to drive industry growth• Accelerated growth is forecasted in regional print and local news segments

Source : KPMG Report 2013, Aranca ResearchNote: CAGR - Compound Annual Growth Rate



Film

• Size of the Indian film industry is expected to touch USD3.6 billion by 2017, up fromUSD2.1 billion in 2012

• Increasing digital screens and 3D films are expected to help industry growth• Big ticket releases lined up for the next couple of years are also expected to boost

revenues

Radio

• Size of the Indian radio industry is expected to reach USD503 million by 2017, up fromUSD234 million in 2012

• Phase III of e-auctions for FM radio licenses will provide an impetus to the segment• Radio advertising is another area likely to experience accelerated growth

Music

• Size of the music industry is expected to grow to USD413 million by 2017, up fromUSD195 million in 2012

• Mobile VAS and arrival of 3G are likely to lead to a surge in paid digital downloads• Phase III radio licensing will also help in increasing music revenues from radio

Source : KPMG Report 2013, Aranca ResearchNote: VAS - Value Added Service



Indian Motion Picture Producers’ Association (IMPPA) "IMPPA HOUSE”, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050Tel: 91-22-26486344/45/1760Fax: 91-22-26480757Website: www.indianmotionpictures.com/imppa/index.html

The Film and Television Producers Guild of IndiaG-1, Morya House, Veera Industrial Estate,Off Oshiwara Link Road, Andheri (W), Mumbai - 400 053Tel: 91-22-66910662Fax: 91-22-66910661E-mail: [email protected]: www.filmtvguildindia.org

Newspapers Association of India (NAI) A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092

Tel: 91-9971847045, 9810226962E-mail: [email protected]: www.naiindia.com



Association of Radio Operators for India (AROI)304, Competent House, F-14, Connaught Place, New Delhi - 110001Tel: 91- 124-4385887e-mail: [email protected]: www.aroi.in

The Indian Music Industry (IMI)Crescent Towers, 7 th FloorB-68, Veera Estate, Off New Link Road, Andheri West, Mumbai - 400 053Tel: 91-22- 26736301 / 02 / 03Fax: 91-22-26736304E-mail: [email protected]: www.indianmi.org



AGV: Animation, Gaming and VFX

CAGR : Compound Annual Growth Rate

DIPP : Department of Industrial Policy and Promotion, Ministry of Commerce and Industry

DTH: Direct to Home

FDI: Foreign Direct Investment

FM: Frequency Modulation

FY: Indian Financial Year (April to March)

So FY10 implies April 2009 to March 2010

GST : Goods and Service Tax

IPO : Initial Public Offering

M&A: Merger and Acquisition

M&E: Media and Entertainment



PPP : Purchasing Power Parity

USD : US Dollar

Conversion rate used: USD1= INR 54.45

VAS : Value Added Services

VFX: Visual Effects

Wherever applicable, numbers have been rounded off to the nearest whole number



Year INR equivalent of one USD

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange rates (Fiscal year)

Year INR equivalent of one USD

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 57.59

Exchange rates (Calendar year)

Average for the year



India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. Thesame may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any mediumby electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or inany manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of thispresentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, thecontent is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned inthis presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result ofany reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission onthe part of the user due to any reliance placed or guidance taken from any portion of this presentation.

Date post:	02-Jun-2018
Category:	Documents
Upload:	ankittomaar
View:	217 times
Download:	0 times

Entertainment March 2014

Documents