Entertainment & Media

July 2005

Entertainment & Media

An Unfolding Opportunity

July 2005

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India


July 2005


Population

States/UTs

Geographical Area

Languages recognised

Business language

Per Capita Income**

GDP**

Over 1 bn

35

3.3 mn sq kms

22

English

US$ 534

US$ 650 bn**(at factor cost & at current prices)

1USD=43.54 INR (as on July 4, 2005)

July 2005

India - Fast pace Growth

Largest democracy

4th largest economy by PPP index

6th largest energy consumer

ForEx reserves skyrocket from US$ 42 bn (2001) to

US$ 133 bn (February, 2005)

GDP growth to continue between 6-8%

3rd largest economy by 2050: Goldman Sachs

Leading in IT & BPO

Oil & Gas and Biotechnology sunrise industries

July 2005

India - Leading the world

Hero Honda - largest manufacturer of motorcycles

Moser Baer - among the top three media manufacturers

in the world

Pharmaceutical Industry - 4th largest in world

Walmart, GAP, Hilfiger sources more than

USD 1bn worth apparel from India

100 Fortune 500 have set R&D facilities in India

including GE, Delphi, Eli Lilly, HP, Heinz and Daimler

Chrysler

July 2005

India - An Overview


Players

Opportunities

Why India?

Contact in India


July 2005

The Entertainment & Media Industry

Size US$6900 mn

Estimated growth rate

over next 5 years 14% CAGR

One of the fastest growing sectors of the Indian economy

July 2005

Films Wing

Directorate of Film Festivals

Ø National Film Development Corpn Ø Central Board of Film Certification

Broadcasting Wing

Ø Prasar Bhartio

AIR o

Doordarshan

Information Wing

Press Council of

India

Press Information Bureau

Ministry of Information & Broadcasting

Key Institutional Framework

July 2005

Constituents

Indian Entertainment & Media Constituents-2004

Films18%

Radio1%

Print38% Music

2%

TV41%

July 2005

The Changing FaceFilms Television Radio Media MusicE&M Sector

Content Commercial (Hindi & Regional) Cinema

Art MoviesCartoon Movies

Commissioned Programs

News & Current Affairs

Commissioned Programs



Fiction/Non Fiction Articles

Film MusicPrivate Albums

Delivery Cinema HallsHome Videos

(Video Cassettes, VCDs, DVDs,)

CableTerrestrial

DTH

Public BroadcasterFM Channels

NewspapersMagazines

Books

CassettesCDs

MobilePhones

Internet

---------- Straight line denotes Traditional Delivery Mechanisms

- - - - Dotted line denotes Converged Delivery MechanismsSource:PwC Analysis

July 2005

R e v e n u e G r o w t h o f I n d i a n F i l m I n d u s t r y

1 , 2 5 61 , 4 8 2

1 , 7 4 82 , 0 6 3

2 , 4 3 4

2 , 8 7 2

-

5 0 0

1 , 0 0 0

1 , 5 0 0

2 , 0 0 0

2 , 5 0 0

3 , 0 0 0

3 , 5 0 0

2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9

U S DM n

Filmed Entertainment

Current Size US$ 1256 mn

Estimated growth rate over next 5 years 18% CAGR

Source: Industry estimates & PwC Analysis

July 2005

Filmed Entertainment-Key Growth Drivers

Emergence of crossover films

High Return on investment

immense

international appeal

low costs of production

In 2004 alone, estimated five Bollywood releases generatedmore than US$ 2 million each in the UK and US.

July 2005

Increasing importance of regional cinema

International cinema dubbed in Indian languages

Growth of multiplexes

Growth in cinema advertising

Merchandising/Promotional

Material Revenues

Filmed Entertainment-Key Growth Drivers

July 2005

Television

India Third largest television

market in the world

Estimated growth rate of 18% CAGR

TV industry on an overall

basis for next 5 years

Total No. of TV households over 119 mn

Total No. of TV channels over 350

July 2005

TV Industry Revenue Break-up

2,8603,237

3,747

4,421

5,330

6,556

1,667 1,9002,223

2,668

3,308

4,201

1,067 1,195 1,362 1,566 1,8012,089

127 142 162 188 221 266-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2004 2005 2006 2007 2008 2009

US

D M

illio

n Total TV

TVSubscriptionTVAdvertisingTVSoftw are

Source: Industry estimates & PwC Analysis

Television Industry- Revenues

July 2005

Pay Revenues - primary growth driver for

subscription revenues

Growth in number of TV households

Low penetration of multi-channel colour TVs in rural

areas

Growth in the television software segment

Television-Key Growth Drivers

July 2005

Music Industry

Revenues of Indian Music Industry

149153

158

163

168

173

135

140

145

150

155

160

165

170

175

2004E 2005F 2006F 2007F 2008F 2009F

US

$ m

illio

n

Source: Industry estimates & PwC AnalysisF- Forecast;E-Estimate

July 2005

Growth in non-film albums and music videos

Talent Nurturing

FM radio synergies

Shortening shelf life of music

Organised music retailing

Unbundling of the album concept

Product expansion

Overseas potential

Music Industry- Key Growth Drivers

July 2005

Radio Industry

Radio Industry Revenues

5361

7290

113

144

0

20

40

60

80

100

120

140

160

2004E 2005F 2006F 2007F 2008F 2009F

US

$ m

illi

on

Source: Industry estimates & PwC Analysis F- Forecast;E-Estimate

July 2005

Local Advertising

Lower share of Adspend

Satellite Radio

Community Radio

Radio Industry-Key Growth Drivers

July 2005

Print Media

Total Print Media Industry - Revenues

2,369 2,524 2,680 2,840 3,005 3,171

238 254 269 285 300 315

0500

1,0001,5002,0002,5003,0003,5004,000

2004E 2005F 2006F 2007F 2008F 2009F

US

$ m

illi

on

Newspaper Magazine

Source: Industry Estimates & PwC Analysis

F- Forecast;E-Estimate

July 2005

Newspaper Industry

Total Newspaper Industry

926 1,004 1,081 1,160 1,242 1,323

1,443 1,520 1,599 1,680 1,763 1,848

0

500

1000

1500

2000

2500

3000

3500

2004E 2005F 2006F 2007F 2008F 2009F

US

$ m

illi

on

Advertisements Subscriptions



July 2005

Magazine Industry

Total Magazine Industry

170 183 196 210 223 236

68 71 73 75 77 79

0

50

100

150

200

250

300

350

2004E 2005F 2006F 2007F 2008F 2009F

US

$ m

illi

on

Advertising Subscriptions



July 2005

Booming Indian economy

Content

Government initiatives

Emerging Digital Technologies

Newspaper and Magazine Publishing IndustryKey Growth Drivers

July 2005

India - An Overview


Players

Opportunities

Why India?

Contact in India


July 2005

Players Production Distribution Exhibition

Zee Telefilms a a

Adlabs Films a a a

AVM Productions a a a

Mukta Arts a a X

Rajshri Productions a a X

Shringar Group X a a

PVR Cinemas X a a

Pritish Nandy Communications

a a X

Indian Film Industry

a

a Present

X Not present

July 2005

Indian Television Industry

CNBC-TV 18

Discovery

ESPN Star Sports

Hathway Cable

MTV India

Key Players

STAR India

TEN Sports India

Walt Disney

Turner International

July 2005

Indian Television Industry

Doordarshan

Balaji Telefilms

Eenadu TV

NDTV

Nimbus

Padmalaya

Key Players

Sahara India

Sony Entertainment

Sun Television

UTV Software

Zee Telefilms Limited

July 2005

Indian Music Industry

Universal Music India

Saregama India (HMV)

Venus Records

Sony Music Entertainment

BMG Crescendo

Virgin Records

Magnasound

Key Players

July 2005

Radio

All India Radio (AIR)

• Planned, developed & operated by Ministry of I & B.• Network of 214 broadcasting centres• covering 24 languages• covering 91.37% of the area• serving 99.13% of the Indian populace

Private FM Broadcasters

• Entertainment Network India • Radio Today • Radio City• Radio Mid – Day West• India FM Radio

July 2005

Print Media

Times of India

Hindustan Times

The Hindu

The Telegraph

Indian Express

Mid-Day

Key Players

India Today

Readers Digest

Outlook

Femina

Filmfare

Stardust

Newspapers Magazines

July 2005

India - An Overview


Players

Opportunities

Why India?

Contact in India


July 2005

Cable TV Households50 Million

TV Households119 Million

Total No. of Households200 Million

Source: Industry Estimates & PwC Research

Cable TV Households- untapped potential

Low Cable penetration levels indicate huge untapped potential

Rural areas to spur growth

July 2005

Television

Television Subscription

Current size US$ 1667 mn

Television Advertising

Current size US$ 1067 mn

TV Advertising - revenues

10671195

13621566

18012089

0

500

1000

1500

2000

2500

2004E 2005F 2006F 2007F 2008F 2009F

US

$ m

illi

on

Source: Industry Estimates & PwC Research

July 2005

Growth of multiplexes

Platform to screen movies

appealing to niche audience

Have brought back Indian film

viewers to movie halls

Smaller screening options

July 2005

India - An Overview


Players

Opportunities

Why India?

Contact in India


July 2005

Expanding Indian Economy

The India Advantage

Demographic Advantage – 30 to 40 million people joining middle class every year

Strong job creation in new economy sectors

Change in consumer mindset due to global exposure

Untapped rural potential

July 2005

2001 Industry status to Films

The Policy Advantage

2004 Announcement of Broadband Policy

2001 Announcement of DTH guidelines

Reduction in import duties

Move towards Co - production treaties

Key Government Initiatives

July 2005

436 401

96

702

338 308

171

844

0

200

400

600

800

1000

NorthZone

WestZone

EastZone

SouthZone 2003

2004

Number of Seizures

351,790

884,418

221,002

1,475,632

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

MusicCassettes

CDs

Un

its

Number of raids conducted

Source: Indian Music Industry

Enforcement efforts against music pirates

July 2005

Advertising & Film Sector Upto 100% on automatic route

FDI Policy

Print Media - Upto 74% in Indian entities publishing scientific/ technical & speciality magazines/periodicals/journals

- Upto 26% in Indian entities publishing news & current affairs newspapers & periodicals

Broadcasting Sector No restriction on foreign equity in proposals related to software production, marketing of TV rights, air times, advertisements etc.

July 2005

India - An Overview


Players

Opportunities

Why India?

Contact in India


July 2005

Contact in India

Office of the Minister for Information & Broadcasting

Shastri BhawanNew Delhi 110 001

Tel 0091 11 2338 4782/2338 4340Fax 0091 11 2378 2118

July 2005

Contact in India

Secretary, Ministry for Information & Broadcasting

R.No. 655, A Wing, Shastri BhawanNew Delhi 110 001

Tel 0091 11 2338 2639Fax 0091 11 2338 3513

July 2005

Contact in India

Confederation of Indian Industry (CII)

The Mantosh Sondhi Centre23, Institutional AreaLodi RoadNew Delhi 110003IndiaTel: + 91 11 2462 9994-97Fax:+ 91 112461 5693Email: [email protected]

Entertainment & Media

News & Politics

Transcript of Entertainment & Media