• With 146 million television households in 2011, India stood as the third largest television Third largest TV market market after the U.S. and China
• India has one of the largest broadcasting industries in the world with approximately 800 One of the largest satellite television channels, 245 FM channels and more than 100 operational community broadcasting market radio networks
Rising no. of • The total subscriber base for Indian television industry is expected to increase to 173 subscribers million by 2016 from 95 million in 2009
Fast growing Animation • The Indian animation industry is expected to expand at a CAGR of 15.8 per cent to industry USD1.4 billion by 2017 from USD650 million in 2012
Source: Planning Commission, Aranca Research 2012 GrowingRobust demanddemand Attractive opportunities 2017E • Rising incomes and evolving • Industry is set to expand at a Market lifestyles have led to higher CAGR of 15.1 per cent over Market Size: demand for aspirational products 2012–17, one of the highest rates Size: and services USD15.1 globally USD30.5 • Higher penetration and a rapidly billion • Television and AGV segments billion growing young population coupled expected to lead industry growth; with increased usage of 3G and opportunities in digital portable devices would augment technologies as well demand Advantage India Increasing investments Policy support • The engineering sector is delicensed; • Higher FDI inflows • Policy100 per sops,cent FDI increasing is allowed FDI in limitsthe • Increasing M&A activity • Measuressector such as digitisation of • More big-ticket deals such as Walt cable distribution to improve Disney- UTV, Sony-ETV and Zee- • profitabilityDue to policy and support, ease thereof institutional was Star financecumulative FDI of USD14.0 billion into the sector over April 2000 – February • Entry of big players across all • Increasing liberalisation and tariff segment of industry relaxation2012, making up 8.6 per cent of total FDI into the country in that period
Source: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition, CAGR - Compound Annual Growth Rate, FDI - Foreign Direct Investment, E - Estimate Television
Print Gaming
Animation Films & VFX Entertainment
Out Of Radio Home (OOH)
Digital Music Advertising
Source: KPMG Report 2013, Aranca Research Notes: VFX - Visual Effects The entertainment industry is expected to develop at a Market size (USD billion) CAGR of 15.1 per cent during 2012–17 35 20% 31 26 The total market size of the entertainment industry 30 expanded to USD15.1 billion in 2012 from USD9.2 billion in 25 15% 23 2006, at a CAGR of 10.9* per cent 19 20 17 15 15 10% 15 14 The industry recorded one of the highest growths in the 11 12 12 world in 2010 (11.0 per cent); the growth in 2012 picked up 9 10 5% even further to reach 12.6 per cent 5
0 0%
2006 2007 2008 2009 2010 2011 2012
2013F 2014F 2015F 2016F 2017F size (USD Billions) Growth (RHS)
Source: KPMG Report 2013, Aranca Research Note: F - Forecast, CAGR - Compound Annual Growth Rate, * In Indian rupee terms The entertainment industry continues to be dominated by the television segment, accounting for 45 per cent of market share in terms of revenues, which is expected to grow further to 51.0 per cent by 2017E
Television, print and films together account for 86 per cent of market share
Size of major industry segments (2012) Size of major industry segments (2017)
Television 3% Television 2% 5% 3% 2% 4% Print 2% Print 2% 4% 1% 2% Films 1% Films Radio Radio 14% 45% 12% Music 51% Music Out of Home Out of Home Animation and VFX Animation and VFX 20% 27% Gaming Gaming Digital Advertising Digital Advertising
Source: KPMG Report 2013, Aranca Research With a growth rate of 15.8 per cent in 2011, Indian television industry stood second when compared with BRIC and other major developed economies Currently, the television industry in India derives the major share of its revenue from subscription segment (65 per cent) and the rest from advertising (35 per cent) The revenue share from subscription segment is expected to reach 69 per cent by 2016, driven by higher penetration of subscription television
Growth of television industry (in 2011) Television segments
Brazil 22.5%
India 15.8% 65% 69%
Russia 14.4%
China 10.6%
United 35% 31% 3.6% Kingdom
United States 2.1% 2011 2016E TV advertising Subscription revenues
Source: KPMG Report 2013, Aranca Research Note: E - Estimates Radio, Animation & VFX, Gaming and Digital advertising Industry size of emerging segments (USD millions) are also emerging as fast growing segments
The total market share in terms of revenue is expected to 80 reach 15 per cent by 2017 from 11 per cent in 2012 60
During 2012–17, these segments are expected to develop 40 at a CAGR of: 20 Digital advertising (41.6 per cent)
0
2008 2009 2010 2011 2012
Gaming (28.8 per cent) 2007
2013F 2014F 2015F 2016F 2017F Radio Animation and VFX Radio (21.2 per cent) Gaming Digital Advertising
Animation (20.1 per cent) Source: KPMG Report 2013, Aranca Research Notes: VFX- Visual Effects; F - Forecast, CAGR - Compound Annual Growth Rate Total spending on advertising across all media stood at USD5.5 billion, accounting for 41 per cent of the total industry revenue in 2011
Advertising revenue is expected to touch USD10.8 billion by 2016 from USD5.5 billion in 2011
Print is the largest contributor, accounting for 46 per cent of the advertising share
Advertising revenue forecast Advertising revenue share (2011)
12 20% 10.8 9.3 10 15% 4% 5% TV 8.1 6% 8 10% 7.1 5.7 5.5 6.1 Print 6 5.1 5% 39% 5.0 4.9 4 0% OOH 2 -5% Digital Advertising 0 -10% 46%
Radio
2007 2008 2009 2010 2011
2012F 2013F 2014F 2015F 2016F Total revenue- (USD billion) Growth (%) -RHS
Source: KPMG Report 2013, Aranca Research Note: OOH - Out Of Home, F - Forecast Company Business description
Star India Pvt Ltd • Fully owned subsidiary of News Corporation • Portfolio includes 33 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 Studios India 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 168 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 television channels; 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, KPMG report 2012 Aranca Research Notes: M&E - Media and Entertainment Company Business description
Bennett, Coleman and Co Ltd • Largest media conglomerate in India • Publishes world’s most widely circulated English broadsheet daily ‘The Times of India’ and second most widely circulated financial daily ‘Economic Times’ • Other prominent publications include magazines such as Zigwheels, Filmfare, Femina and Top Gear and Hindi dailies such as Navbharat Times and Sandhya Times • The group has also diversified into radio and television business
HT Media Ltd • Hindustan Times is the second most widely read newspaper with 3.8 million readers in India • Other prominent publications include the business daily Mint and the Hindi daily Hindustan • The group has also forayed into many adjacent businesses such as print and digital services, internet, radio, and events and marketing solutions • The company’s job portal www.shine.com has over 8.5 million registrations
Living Media India Ltd • India Today and Readers Digest are among India’s most circulated magazines • Other prominent magazine publications include Business Today, Cosmopolitan, Time, Golf Digest, Design Today, Money Today and The Chartered Accountant • The group has interests in various other businesses such as radio, events, printing, music, television, education and publishing
Source: Company Websites, The Times of India, Aranca Research Notes: CAGR - Compound Annual Growth Rate, FY - Financial Year Company Business description
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, recurring cash flows • The company is diversifying into Marathi, Punjabi, Tamil and other regional language films to leverage upon the growing 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 • Its latest venture 'Ra.one‘ is Bollywood's most expensive movie and very first Sci-fi movie • It also owns the Kolkata Knight Riders cricket franchise in the Indian Premier League
Source: Company Websites, Business Week, Aranca Research Company Business description
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 counter declining 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
Source: Company Websites, Business Week, Aranca Research • Television penetration in India is at about 60 per cent and penetration is expected to reach 70 per cent by 2016 • The government announced the digitisation of cable television in India in four phases, Television which would be completed by the end of 2014 • The direct-to-home (DTH) subscription is growing rapidly driven by content innovation and product offerings • The subscription share to the total revenue is expected to grow to 69 per cent by 2016
• Considering the huge potential in regional print markets, national advertisers are entering these markets to increase their advertising share Print • Increasing income levels and evolving lifestyles have led to robust growth in niche magazines segment • Increasing literacy levels leading to a rise in the readership base
• Growth to be fuelled by multiplex chains, increasing footfalls of consumers and higher quality content Film • 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 Research Notes: DTH - Direct to Home, 3D - Three Dimension • 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 Animation, Gaming and advertising and gaming VFX (AGV) • Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian players • Content localisation such as T20fever.com and ICC World Cup 2011 games
• Increasing FM enabled radio phones, mobiles and car music systems • During 2010, there were a total of 245 channels operating across India • Government introduced favorable guidelines for expansion of the 3rd phase of FM radio 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
• 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 Music 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 GrowingGrowing demand Policy support Increasing investments
Higher real Policy sops, incomes and favourable FDI Higher FDI inflows changing lifestyles climate Inviting Resulting in
Falling prices, Policies to enhance growing segments Increasing M&A increasing like animations and activity penetration gaming
Growing young Increasing Increasing user base with high liberalisation, participation of big access to tariff relaxation players technology
Source: Aranca Research Incomes have risen at a brisk pace in India and will continue Rising per-capita income in India (USD) rising given the country’s strong economic growth prospects. Nominal per capita income is estimated (IMF) to 30% have recorded a CAGR of 11.2 per cent over 2000–12 2,100 25% 1,800 Rising incomes, with its positive impact on the consumer 20% 1,500 base, will be the key growth driver for the entertainment 15% industry (across the country) 1,200 10%
900 5% As the proportion of ‘working age population’ in total population increases, per capita income and GDP are 600 0% expected to grow higher
300 -5%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2011F 2012F 2013F 2014F 2015F 2016F 2017F Gross domestic product per capita, current prices Growth
Source: IMF, Aranca Research, Note: CAGR - Compound Annual Growth Rate Apart from the impact of rising incomes, widening of the Indian residents shifting from low-income to high- consumer base will also be aided by expansion of the income groups middle class, increasing urbanisation, and changing lifestyles Million Household,100%
15 The entertainment industry will also benefit from continued 26 rise in the propensity to spend among individuals; empirical 50 evidence points to the fact that decreasing dependency ratio 32 leads to higher discretionary spending on entertainment 40 29 35 25 17 12 6 2 1 3 7 2008 2020 2030 Globals (>18412.8) Strivers (9206.4-18412.8) Seekers (3682.5 - 9206.4) Aspirers (1657-3682.5) Deprived (<1657)
Source: McKinsey Quarterly Report, Aranca Research • Digitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help players improve their value chain • FDI limit increased from 49 per cent to 74 per cent in cable and DTH satellite platforms in Television 2012 • No restriction on foreign investment for uplinking and downlinking of TV channels other than news and current affairs
• Co- production treaties with various countries such as Italy, Brazil, UK and Germany to increase the export potential of the film industry • Granted ‘industry’ status in 2001 for easy access to institutional finance Film • 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
• FDI limit in radio increased to 26 per cent from 20 per cent in 2011 • Private operators allowed to own multiple channels in a city, subject to a limit of 40 per Radio 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 licence fees on the basis of ‘net income’ so as to provide relief to loss making radio players
Source: Aranca Research, Notes: FDI – Foreign Direct Investment, FII – Foreign Institutional Investors • FDI/NRI investment upto 26 per cent in an Indian firm dealing with publication of newspaper and periodicals • FDI/NRI investment upto 26 per cent in publications of Indian editions of foreign Print magazines • FDI/NRI investment upto 26 per cent in publications of scientific and technical magazines/ specialty journals/ periodicals
• Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthens the royalty claims of musicians, lyricists and others in the field • Policies are adopted against digital piracy and file-sharing; steps have been taken to block Music illegal music websites • Adoption of revenue sharing model by Copyright Board requiring FM radio companies to share 2 per cent of their net advertising revenues with music companies
• 100 per cent FDI allowed in the sector through automatic route provided it is in compliance Animation, Gaming and with Reserve Bank of India guidelines VFX (AGV) • The government has craved out a National Film Policy to tap the potential of the film sector mainly for the animation segment
Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ for digitisation of cable television networks by 2014
The cable operators under the digitisation regime are legally bound to transmit only digital signals, while the customer can access 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*
Delhi 31st October 2012
Mumbai 31st October 2012 Phase 1 Kolkata 15th January 2013
Chennai Not completed
Phase II 38 cities in 15 states 31st March 2013
Phase III All remaining urban areas 30th November 2014
Phase IV Rest of India 31st 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 as compared 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 35–50
Distributor 5 0–5
Multiple System Operators (MSOs) 15–20 25–30
Broadcaster 10–15 30–35
Source: Digital Dawn, KPMG Report 2013, Aranca Research Presence of analog cable and higher contribution has led to Average revenue per user per month (USD) lower Average Revenue Per User (ARPU) level, which is around USD3.0 for a digital pay television 4.6
However, with higher scope of introduction of new and 4.2 niche channels with digitisation, ARPU levels are expected to increase 3.7
3.3 3.1 3.1 2.9 3.1 3.1 3.1 3.0
2011 2012 2013F 2014F 2015F 2016F Analog Digital
Source: KPMG Report 2013, Aranca Research Note: F - Forecast Consolidation will be the major route to grow inorganically for entertainment companies in order to expand their Mergers and Acquisitions (M&A) deals during 2011-2012 portfolios and enter into new regions
A few big deals have come about, the most notable ones Deal value Acquirer Target Deal date (USD being Walt Disney-UTV and TV18-ETV (together amounting million) to around USD700 million) V&S Cable Gujarat Telelinks April -2012 - Private Limited
Metronation Educational Chennai Mar-2012 3.2 Trustee Company Television
Walt Disney UTV Feb-2012 300
TV18 Eenadu Group Jan 2012 395
Samara Capital Newswire18 Dec-2012 18.8
Jagran Media Blackstone Jul-11 46.9 Network
Source: KPMG Report 2012, Aranca Research FDI inflows into the entertainment sector between April Cumulative FDI inflows into Information and 2000 and February 2013 stood at USD3.1 billion Broadcasting from April 2000 (USD billion) 3.1 2.9 By February 2013, the share of FDI in ‘Information and Broadcasting’ was 1.6 per cent of total FDI inflows into the country 2.2 1.8
Demand growth, supply advantages and policy support are the key drivers in attracting FDI 1.3
0.6
FY08 FY09 FY10 FY11 FY12 FY13*
Source: DIPP, Aranca Research Notes: DIPP - Department of Industrial Policy and Promotion, FY13* Data from April 2012-February 2013 Disney becomes a majority share holder with a stake of 32.1% Interactive Became world’s Launched IPO as first company to UTV Software record over 100 million downloads BroadcastingBroadcasting communications Ltd on Nokia store Ventured into internet Acquires content Indiagames Ltd, creation and enters gaming GamesGames content aggregation software and content
Started as a Launched content provider Hungama TV MotionMotion pictures for Doordarshan
Deal with Disney to dub its content TelevisionTelevision contentcontent into Indian languages
1990 1996 2000 2004 2005 2007 2008 2012
Source: Company Annual Reports, Aranca Research Enters Film Production and Magazine Distribution through ‘SUN Pictures’ Acquires Launches three Dinakaran pay channels and Newspaper newspaper, Tamil four ad-free action Nadu’s leading movie channels daily Launches a slew of other channels in Radio various South Indian Launches SUN languages Direct to provide DTH services
Motion pictures Founded as Starts its first FM Sumangali Channel Publications ‘Sumangali FM’
Direct to Home ‘SUN TV’ is launched with daily three hours Broadcasting of programming
1985 1993 2000 2003 2005 2007 2008 2012
Source: Company website, Aranca Research Adlabs Imagica, a flagship project of Adlabs Entertainment Adlabs Imagica Ltd is a 300-acre entertainment theme park located on the Mumbai–Pune expressway
It is India's most elaborate theme park for a total value of USD294 million
The park features 21 attractions including rides, film shows and live acts drawn from Indian mythology and Bollywood cinema
The total footfall is expected to be around 2-3 million per year
SALIENT FEATURES
Total area - 300 acre
Total cost - USD294 million Source: Company website, Aranca Research Visitor capacity - 10,000 to 15,000 visitors per day
Ticket cost - Weekday (USD23) weekends (USD28) Dish TV is Asia's largest and India's first direct-to-home or Dish TV revenues (USD million) commonly known as DTH company
Dish TV India Limited, a division of Zee Network Enterprise 423.1 (Essel Group Venture) provides DTH satellite television 320.9 Dish TV ranks 5th on the list of media companies in the CAGR: 48.3 % Fortune India 500 233.7
149.4 The company’s revenue rose at a CAGR of 48.3 per cent to USD423.1 million in FY12 87.4
FY08 FY09 FY10 FY11 FY12
Source: Company website, Aranca Research Note: CAGR - Compound Annual Growth Rate Over 2012–17, the total market size is expected to expand Market size (USD billion) at a CAGR of 15.6 per cent to USD30.5 billion
30.5 The next five years will see digital technologies increase their influence across the industry leading to a sea change CAGR: 15.6% 26.4 in consumer behaviour across all segments 22.7 19.4
14.8 16.8
2012 2013F 2014F 2015F 2016F 2017F
Source: KPMG Report 2013, Aranca Research Note: CAGR - Compound Annual Growth Rate Television will continue to be the lead contributor to the Size of major industry segments (USD billion) overall industry growth. The segment is estimated to expand to USD15.6 billion by 2017 (CAGR of 18.5 per cent since 2012) Television Print Radio, Animation & VFX, Gaming and Digital advertising Films are emerging as the fast growing segments Animation and VFX During 2012–17, these segments are expected to expand at Digital Advertising a CAGR of: Out of Home Digital advertising (41.6 per cent) Gaming
Radio Gaming (28.8 per cent) Music
Radio (21.2 per cent) 0.0 5.0 10.0 15.0 2017F 2012 Animation (20.1 per cent)
Source: KPMG Report 2013, Aranca Research Note: 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 USD355 million in 2007, the sector is forecasted to post a CAGR of 18.0 per cent to reach USD1.4 billion over 2007–17
Size of the animation industry in India Share of sub-segments in India’s (USD million) animation industry (2012) 1.3 1.2 16% 1.0 Animation VFX CAGR: 14.3% 0.9 0.7 0.6 Animation 0.6 Entertainment 0.4 0.4 0.5 20% 0.4 64% Custom Content
Development
2007 2008 2009 2010 2011 2012
2013F 2014F 2015F 2016F 2017F
Source: KPMG Report 2013, Aranca Research; Note: F - Forecast VFX - Visual Effects, CAGR - Compound Annual Growth Rate 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 from USD104.2 million and USD32.9 million, respectively in 2012
Opportunities* for Indian gaming firms across the segment’s value chain
Concept Post- Production Pre-production Development Final Testing Creation and 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
Source: ‘’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca Research; Notes: * We have portrayed the intensity of opportunities in each segment based on the extent of Indian players’ current presence in that segment The share of digital cable as well as DTH service providers Number of subscribers (Millions) is expected to increase post-digitisation
8 Total subscription for DTH is expected to increase to 75 8 8 million subscribers by 2016 from 4 million in 2009 8 8 86 8 78 53 64 7 46 Total subscription for DTH is expected to increase to 86 6 37 million by 2016 subscribers from 16 million in 2009 16 28 4 5 6 19 32 49 67 75 69 68 68 59 50 32 12 4 2009 2010 2011 2012F 2013F 2014F 2015F 2016F
Analog Digital DTH DD Direct
Source: KPMG Report 2013, Aranca Research Note: F - Footnote • Television is projected to garner a share of 51 per cent in the television pie by 2017 (as addressable digitisation is expected to cover the entire country by then) Television • Television advertisement revenue is also expected to witness robust growth and increase from USD2.1 billion in 2011 to USD4.2 billion by 2016
• 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 Animation • Growth in international animation films, especially 3D productions, and the subsequent work for Indian production houses will help growth in this segment
• The print industry was worth USD4.1 million in 2012 and is expected to develop at a CAGR of 8.7 per cent to USD6.3 billion by 2017 Print • 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 Research Note: CAGR - Compound Annual Growth Rate • Size of the Indian film industry is expected to touch USD3.6 billion by 2017, up from USD2.1 billion in 2012 Film • 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
• Size of the Indian radio industry is expected to reach USD503 million by 2017, up from USD234 million in 2012 Radio • 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
• Size of the music industry is expected to grow to USD413 million by 2017, up from USD195 million in 2012 Music • 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 Research Indian Motion Picture Producers’ Association (IMPPA) "IMPPA HOUSE”, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050 Tel: 91-22-26486344/45/1760 Fax: 91-22-26480757 Website: www.indianmotionpictures.com/imppa/index.html
The Film and Television Producers Guild of India G-1, Morya House, Veera Industrial Estate, Off Oshiwara Link Road, Andheri (W), Mumbai - 400 053 Tel: 91-22-66910662 Fax: 91-22-66910661 E-mail: [email protected] Website: www.filmtvguildindia.org
Newspapers Association of India (NAI) A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092 Tel: 91-9971847045, 9810226962 E-mail: [email protected] Website: www.naiindia.com Association of Radio Operators for India (AROI) 304, Competent House, F-14, Connaught Place, New Delhi - 110001 Tel: 91- 124-4385887 e-mail: [email protected] Website: www.aroi.in
The Indian Music Industry (IMI) Crescent Towers, 7th Floor B-68, Veera Estate, Off New Link Road, Andheri West, Mumbai - 400 053 Tel: 91-22- 26736301 / 02 / 03 Fax: 91-22-26736304 E-mail: [email protected] Website: 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 Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR equivalent of one USD Year INR equivalent of one USD
2004-05 44.95 2005 45.55
2005-06 44.28 2006 44.34
2006-07 45.28 2007 39.45
2007-08 40.24 2008 49.21
2008-09 45.91 2009 46.76
2009-10 47.41 2010 45.32
2010-11 45.57 2011 45.64
2011-12 47.94 2012 54.69
2012-13 54.31 2013 54.45
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