Project Nabojagoron.ppt

Document Sample
Project Nabojagoron.ppt Powered By Docstoc
					www.imacs.in




          Media &
          Entertainment
               September 2006
                                                      MEDIA &
www.imacs.in                                   ENTERTAINMENT




           Contents
           • Market Overview
           • Government regulations & policy
           • Advantage India and business
             opportunities
                                                                 MEDIA &
www.imacs.in                                              ENTERTAINMENT




           Market
           Overview
           • Market Overview
           • Government regulations & policy
           • Advantage India and business opportunities
                                                                                                         MEDIA &
www.imacs.in                                                                                      ENTERTAINMENT



           Market Overview


           Indian Media & Entertainment Industry -
           Zooming ahead
           India Media & Entertainment Industry
                         1000
                                                                             837
                         800                        CAGR 19%        686
           INR Billion




                         600                               562
                                                     473
                         400    353       402

                         200
                                      *         *                                   E*: Estimate, F*: Forecast
                           0
                                2005E 2006F 2007F 2008F 2009F 2010F
                                                 Years
           •         Current Market Size is estimated at USD 7.72 bn
           •         Expected to reach USD 18.32 bn by 2010, a CAGR of 19%
           •         Maximum growth expected in Television and Film segments
           •         More than 300 national and regional TV channels
           •         Close to 1000 films made every year
           •         Liberal FDI policies across all the segments of the industry
           •         Government focusing on regulations to give further impetus to the industry

           Source: IMaCS Analysis, FICCI-PWC Frames 2006 Report
                                                                                                                MEDIA &
www.imacs.in                                                                                             ENTERTAINMENT



           Market Overview


           Major constituents
           Breakup of Indian Media & Entertainment Industry                             • Television is the largest segment with close
                                    Outdoor Advertising                                   to 42% share in industry revenues followed
                                             2.5%                                         by print media at 30.9% and films at 19.3%
                                                          Internet Advertising            in 2005
                    Live Entertainment
                                                                0.3%
                            2%                                                          • Television’s share expected to increase to
                                                                                          more than 50% by 2010 at the cost of print
                                                                           Television     media’s share
           Print Media                                                       41.9%
               30.9%




                         Radio
                         0.8%
                                     Films                  Music

                                     19.3%                   2.0%




           Source: Industry estimates, IMaCS Analysis
                                                                                       MEDIA &
www.imacs.in                                                                    ENTERTAINMENT



           Market Overview


           Key Drivers of the Indian Media &
           Entertainment Industry
                                                        • Enabling regulations related to broadcasting,
                             Regulation                   print and radio by the Government
                                                        • Development of content for niche viewers
                                                        • Pricing remains a key driver, whether it is for
               Content                    Consumerism     cable subscription, film tickets or newspaper
                                                          prices
                                                        • Increased consumerism and increased
                               Key                        advertisement spend by marketers (i.e.more
                              Drivers
                                                          revenues for media companies) fueling further
                                                          growth
                                          Advertising   • Use of technology for special effects, animation
               Pricing                      spend         and other creative work leading to better
                                                          quality of media products

                             Technology
                                                                                                                            MEDIA &
www.imacs.in                                                                                                         ENTERTAINMENT



           Market Overview


           Indian Television Industry -
           Wholesome entertainment
           Projected size of Indian Television Industry                                  Indian Television Industry Revenue Breakup - 2005
                         500                                            427                            TV Software
                         400                                                                               5%
                                                                327
           INR Billion




                                                        250                                    TV
                         300
                                                203
                                        170                                             Advertising
                         200    148
                                                                                               37%
                         100                                                                                                          TV
                                                                                E*: Estimate                                   Subscription
                           0                                                    F*: Forecast
                               2005E   2006F   2007F   2008F   2009F   20 10F                                                         58%

                                                   Years

           • Largest segment in the industry with market size of USD 3.24 bn in 2005
           • Expected to reach USD 9.34 bn by 2010, a CAGR of 24%
           • Subscription accounts for 58% of the total revenues followed by advertising
                         and software
           • India currently has 105 million TV households and over 60 million cable
                         connections
           • TV penetration expected to increase to 135 million households and cable
                         connections to 85 million households by 2010


           Source: IMaCS Analysis
                                                                                                   MEDIA &
www.imacs.in                                                                                ENTERTAINMENT



             Market Overview


             What do the viewers watch in India?
             Genrewise Television Viewership Share in India
                                      3%
                                4%         1%
                         2%
                8%
                                                                39%
                                                                          Mass Entertainment
                                                                          Hindi Film Channels
        5%                                                                Kids Channels
                                                                          Regional Channels
                                                                          English Entertainment
                                                                          Music Channels
                                                                          News Channels
                                                                          Sports Channels



                               38%


             • Mass Entertainment Hindi and regional language channels attract almost 80% of the total
               TV viewership in India
             • Niche channels like News and Sports gaining ground



             Source: TAM Media Research
                                                                                                                                           MEDIA &
www.imacs.in                                                                                                                        ENTERTAINMENT



           Market Overview


           Indian Film Industry -
           The Bollywood dreams
           Projected size of Indian Television Industry                                         Density of Film Theatres - India & Abroad

                                                                                                                                                                                  117
                         200                                                                         120




                                                                                  Screens/ million
                                                                           1 53
                                               CAGR 18%
           INR Billion




                          1 50                                     132                               100




                                                                                    population
                                                           1 13                                                                                                          77
                                                  97                                                 80
                          100     68      79                                                                                                                   61
                                                                                                     60                                      52 53
                                                                                                                   43      45 46
                           50                                                                              30
                                                                                                     40                                                                                 12
                            0                                                                        20
                                 2005E   2006F   2007F   2008F    2009F   2010F                        0




                                                                                                                                                               Denmark



                                                                                                                                                                                  US
                                                                                                                                                                                        India
                                                                                                                                                                         France
                                                                                                                                                     Ireland
                                                                                                                Belgium




                                                                                                                                             Italy
                                                                                                           UK



                                                                                                                          Germany

                                                                                                                                     Spain
                                                   Years


           •             Largest number of films produced in the world~1000 films every year
           •             More than 3 billion tickets sold in 2005
           •             Gross revenues of over USD 1.49 bn in 2005
           •             Expected to reach USD 3.35 bn by 2010, a CAGR of 18%
           •             Large scope for growth in number of screens
           •             Digitisation of theatres and growth of multiplexes fueling further growth



           Source: IMaCS Analysis, FICCI - PWC Frames 2006 Report & UNESCO
                                                                                                   MEDIA &
www.imacs.in                                                                                ENTERTAINMENT



           Market Overview


           Hit or flop -
           Breakup of Indian films market
           Breakup of Films Market in India
                             8%
                       1%
               15%

                                                                         45 %
                                                                                Hindi      Cro ssover Hindi
                                                                                Tamil      Telugu
                                                                                Foreign    Malayalam
                                                                                B engali   Others
           17%


                                  1 0%              2% 2%


           •   Hindi films account for almost half of the total market
           •   Foreign films, primarily from Hollywood have a market share of 2%
           •   Regional language films account for the rest of the market
           •   Dubbed Hollywood films a new trend



           Source: IMaCS Analysis, Industry estimates
                                                                                                                           MEDIA &
www.imacs.in                                                                                                        ENTERTAINMENT



           Market Overview


           Indian Music Industry -
           Soul searching
                        Projected size of Indian Music Industry                                 Gerewise Music Sales in India - 2005

                         7.6                                                                                        7%
                                                                                                         8%
                                                               7.4      7.4
          INR Billion




                         7.4                          7.3
                                       7.2    7.2                                             10%                                      40%
                         7.2
                                7.0
                         7.0
                                                                               E*: Estimate
                         6.8                                                   F*: Forecast
                                                                                              8%
                               2005E 2006F   2007F 2008F 2009F 2010F
                                                                                                    6%
                                                 Years                                                                   21%
           • Unique structure with film and devotional music                                        New Film Music
                        dominating the market                                                       Popular Music
                                                                                                    Others
           •            Non-film albums and remixed songs gaining market
                                                                                                    International
           •            Total revenues close to USD 0.15 bn in 2005                                 Old Films Music
           •            Expected to reach USD 0.16 bn by 2010, a CAGR of 1%                         Devotional
           •            Government and industry taking firm action to reduce                        Regional Film Music
                        piracy of all forms

                                                            Source: IMaCS Analysis, Industry estimates
                                                                                                                                      MEDIA &
www.imacs.in                                                                                                                   ENTERTAINMENT



            Market Overview


            Indian Radio Industry -
            Singing a growth tune
            •           India has over 190 million radio sets reaching 99% of the population
            •           More than 330 FM Radio licenses being allotted by the Government (~240 already allotted)
            •           Move from license fee to revenue share model to give a further boost to the industry
            •           New platforms to access radio like satellite radio, mobile phone radios and internet radio growing fast
            •           Revenues in 2005 - USD 0.06 bn
            •           Expected revenues in 2010 - USD 0.26 bn, a CAGR of 32%
            •           Ad spend on radio set to increase with more FM radios operational

           Projected size of Indian Music Industry                                                                       Global ad Spend on Radio
                                                                                                                        20%




                                                                                            Share of total ad
                        15.0                                                                                    20%
                                                                             12.0
                                                                                                                              13%
          INR Billion




                                                                    10.0                                        15%
                                            CAGR 32%

                                                                                                spend
                        10.0                                8.0                                                                      9%
                                                                                                                10%                                7%       Global 8%
                                                   5.5
                         5.0     3.0      3.7
                                                                                                                5%                                              1%

                         0.0                                                                                    0%




                                                                                                                                            Australia

                                                                                                                                                        India
                                                                                                                      Lanka




                                                                                                                                    Spain
                                                                                                                              USA
                                                                                                                        Sri
                               2005E    2006F    2007F    2008F    2009F    2010F
                                                  Years

            E*: Estimate
            F*: Forecast

            Source: IMaCS Analysis, FICCI - PWC Frames 2006 Report                            Source: IMaCS Analysis
                                                                                                                   MEDIA &
www.imacs.in                                                                                                ENTERTAINMENT



           Market Overview


           Indian Print Media Industry -
           Reader’s choice
                                                                                             Leading Newspapers in India
           • More than 220 million readers of English and                                                        Readership (Million)
                                                                                    Vernacular
               vernacular language newspapers and magazines                          Dainik Jagran                        21.2
           • English language newspapers and magazines                              Dainik Bhaskar                        21.0
                                                                                    Eenadu                                13.8
               readership close to 10% of the total base
                                                                                    Lokmat                                10.9
           • Newspapers account for 90% of the market,                              Amar Ujala                            10.8
                                                                                    Hindustan                             10.4
               Magazines~10% market share
                                                                                    Daily Thanthi                         10.4
           • Revenues expected to grow from USD 2.38 bn in                          Dinakaran                             9.6
               2005 to USD 4.37 bn in 2010                                          Rajasthan Patrika                     9.4
                                                                                    English
           • Subscriptions contribute 57% of the total revenues,                    Times of India                        7.4
               rest by Advertisement                                                The Hindu                             4.1
                                                                                    Hindustan Times                       3.9
           • Print media, especially newspapers, attracting a large
                                                                       Projected size of Indian Music Industry
               number of strategic overseas investments
                                                                                    250
                                                                                                                                       95
                                                                                                                                       1
                                                                      INR Billion

                                                                                    200                                          73
                                                                                                                                 1
                                                                                                                     53
                                                                                                                     1
                                                                                    1
                                                                                    50               1 1
                                                                                                     2      35
                                                                                                            1
                                                                                            09
                                                                                            1
                                                                                    00
                                                                                    1
                                                                                     50
                                                                                     0
                                                                                          2005E   2006F    2007F   2008F    2009F        0F
                                                                                                                                      20 1
           Source: NRS 2006                                                                                Years
           Source: IMaCS Analysis, FICCI - PWC Frames 2006 Report                             E*: Estimate, F*: Forecast
                                                                 MEDIA &
www.imacs.in                                              ENTERTAINMENT




           Government
           regulations & policy
           • Market Overview
           • Government regulations & policy
           • Advantage India and business opportunities
                                                                                                              MEDIA &
www.imacs.in                                                                                           ENTERTAINMENT



           Government regulations & policy


           FDI Regulations for Indian Media &
           Entertainment Industry…1
                             Guidelines for Foreign Direct Investment in the Indian Media & Entertainment Industry

                  1. Advertising          FDI is permitted upto 100% through the automatic route

                                          FDI is permitted for the full value chain like film financing, production, distribution, exhibition and
                  2. Films                marketing upto 100% through the automatic route

                                          (a) FDI up to 100% is permitted in publishing/printing scientific & technical magazines, periodicals &
                  3. Print Media          journals

                                          (b) FDI up to 26% is permitted in publishing News Papers and Periodicals dealing in News and
                                          Current Affairs subject to a few conditions




           Source: IMaCS Analysis
                                                                                                           MEDIA &
www.imacs.in                                                                                        ENTERTAINMENT



           Government regulations & policy


           FDI Regulations for Indian Media &
           Entertainment Industry…2
                            Guidelines for Foreign Direct Investment in the Indian Media & Entertainment Industry

                 4. Broadcasting
                                             a)TV Software Production
                                             100% foreign investment allowed subject to a few conditions

                                             b) Setting up hardware facilities, such as uplinking, HUB, etc.
                                             FDI allowed upto 49% (inclusive of both FDI and portfolio investment) of paid up share capital

                                             c) Cable Network
                                             FDI allowed upto 49% (inclusive of both FDI and portfolio investment) of paid up share capital.

                                             d) Direct-to-Home
                                             Maximum foreign investment of 49% paid up share capital include

                                             e) Terrestrial Broadcasting FM
                                             Foreign investment is permissible to the extent of 20% (including portfolio investment,
                                             investment by OCB/NRI/PIO etc.) of the paid up share capital of the company. The licensee
                                             should be a company registered in India under the Companies Act.

                                             f) Terrestrial TV
                                             No private operator is allowed in terrestrial TV transmission.

                                             g) Establishment and Operation of Satellite
                                             FDI up to 74% is permitted with prior Government approval




           Source: IMaCS Analysis
                                                                 MEDIA &
www.imacs.in                                              ENTERTAINMENT




           Advantage India and
           business opportunities
           • Market Overview
           • Government regulations & policy
           • Advantage India and business opportunities
                                                                                             MEDIA &
www.imacs.in                                                                          ENTERTAINMENT



           Advantage India & business opportunities

           Advantage India
           • Second fastest growing economy in the world
           • Favourable FDI policies for all the segments of Media & Entertainment Industry
           • Regulatory environment being strengthened for faster growth of the industry
           • High quality of creative and technical talent pool
           • Large untapped potential especially in Television and Films
           • Indian consumers willing to spend more on entertainment
           • Growing middle class with more disposable income
                                                                                                 MEDIA &
www.imacs.in                                                                              ENTERTAINMENT



           Advantage India & business opportunities

           Business opportunities in the Indian
           Media & Entertainment Industry…1
           Television

           •   Production/co-production of content
           •   Broadcasting of TV channels
           •   Distribution of TV channels through cable and new delivery platforms like DTH and IPTV
           •   Technology transfer for digital content creation
           •   Marketing of TV rights/air times
           •   Strategic investment in existing companies in broadcasting, distribution and content

          Radio

           • Investment in FM and Satellite Radio
           • Content creation for radio channels
           • Marketing of air times
                                                                                             MEDIA &
www.imacs.in                                                                          ENTERTAINMENT



           Advantage India & business opportunities

           Business opportunities in the Indian
           Media & Entertainment Industry…2
           Films

           •   Production/co-production of films
           •   Processing, distribution and exhibition of Bollywood films
           •   Shooting of overseas films in India
           •   Development, distribution and exhibition of Hollywood/overseas films
           •   Training for technical and functional areas of film making
           •   Supply of Hardware to film studios

           Music
           • Creation of content for film and non-film music
           • Marketing of film and non-film music
           • Strategic investment in local music companies
           Print

          • Strategic investment in news and non-news publications
          • Tie-ups for providing content to Indian publications
                                                             MEDIA &
www.imacs.in                                          ENTERTAINMENT



           Advantage India & business opportunities

           Key Players - Indian Film Industry
                                                                                                      MEDIA &
www.imacs.in                                                                                   ENTERTAINMENT



           Advantage India & business opportunities

           Key Players -
           Indian Television & Radio Industry
                                               Doordarshan is the largest TV network in India with 19 channels reaching 90%
                                               of the population through 1400 transmitters


                                               News Corporation owned Star TV Network entered India in 1991 and offers more than
                                               10 channels in mass entertainment, sports, news,, music, movies etc.


                                               Zee is one of the pioneers of the Indian Television industry with 22 channels in its
                                               bouquet. It is present in broadcasting, cable distribution, production and distribution
                                               of films, creation of animation software among others

                                               Sony Pictures Entertainment is present in India with 3 channels focusing on
                                               Hindi entertainment and sports



                                               Sun Network is based in South India with 14 channels in four languages and a focus on
                                               entertainment, news, movies, music, kids shows among others. Also present in FM Radio


                                               Walt Disney is present in India through two kids channels and has recently
                                               bought one more kids channel


                                               All India Radio, owned by Government of India is the largest radio network in India
                                               with 214 broadcasting centres covering more than 99% of the Indian population
                                                                                                     MEDIA &
www.imacs.in                                                                                  ENTERTAINMENT



           Advantage India & business opportunities

           Key Players -
           Indian Music Industry
                                               BMG is one of the earliest music companies to enter India in a joint venture with
                                               Crescendo, an Indian company




                                               EMI owned Virgin Records is another international music company operating in India




                                               Universal is one of the leading names in Indian music industry with a strong
                                               presence across all genres



                                               Sony is one of the leading music companies of India with a presence in both
                                               Indian and International albums



                                               Saregama, formerly known as The Gramophone Company of India Ltd. is India’s
                                               oldest music company with largest repertoire of music across all genres and languages
                                               including top-recording artistes of the past hundred years
                                                                                                    MEDIA &
www.imacs.in                                                                                 ENTERTAINMENT



           Advantage India & business opportunities

           Key Players -
           Indian Print Media Industry
                                               One of the leading English dailies owned by Bennett, Coleman & Co, a leading
                                               media group of India




                                               Another leading English newspaper with multiple editions published from
                                               many states in India




                                               One of the oldest newspapers with a strong presence in South India




                                               Hindustan Times is another leading English newspaper with more than 4 million
                                               readership mostly in North India



                                               Published in English and Malayalam, this newspaper enjoys a strong readership in
                                               South India. It also publishes a large number of well known magazines in English
                                               and regional languages
                                                                                          MEDIA &
www.imacs.in                                                                       ENTERTAINMENT




           The India Brand Equity Foundation is a public-private partnership
           between the Ministry of Commerce & Industry, Government of India
           and the Confederation of Indian Industry. The Foundation’s primary
           objective is to build positive economic perceptions of India globally

           India Brand Equity Foundation
           c/o Confederation of Indian Industry
           249-F Sector 18, Udyog Vihar Phase IV
           Gurgaon 122015, Haryana, INDIA
           Tel +91 124 401 4087, 4060 - 67
           Fax +91 124 401 3873
           Email j.bhuyan@ciionline.org
           Web www.ibef.org
                                                                                                                 MEDIA &
www.imacs.in                                                                                              ENTERTAINMENT




                                                ICRA Management Consulting Services Limited


           Disclaimer
           This publication has been prepared by ICRA Management Consulting Services (IMaCS) for the India Brand
           Equity Foundation (“IBEF”).

           All rights reserved. All copyright in this publication and related works are jointly owned by IBEF and IMaCS.

           The same may not be reproduced, wholly or in part in any material form (including photocopying or storing
           it in any medium by electronic means and whether or not transiently or incidentally to some other use of this
           publication), modified or in any manner communicated to any third party except with the written approval of
           IBEF.

           This publication is for information purposes only. While due care has been taken during the compilation of
           this publication to ensure that the information is accurate to the best of knowledge and belief of IBEF and
           IMaCS, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

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

           IBEF or IMaCS shall in no way, be liable for any direct or indirect damages that may arise due to any act or
           omission on the part of the user due to any reliance placed or guidance taken from any portion of this
           publication.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:11
posted:9/3/2011
language:English
pages:26
yanyan yan yanyan yan
About