entertainment march-220313
DESCRIPTION
sectoral report - entertainment by IBEFTRANSCRIPT
1 1
Entertainment
For updated information, please visit www.ibef.org
MARCH
2013
2 2
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: UTV, SUN TV
Opportunities
Useful information
For updated information, please visit www.ibef.org
Entertainment MARCH
2013
3 3
Entertainment
For updated information, please visit www.ibef.org ADVANTAGE INDIA
Advantage India
Advantage India
• Rising incomes and evolving lifestyles have led to higher demand for aspirational products and services
• Higher penetration and a rapidly increasing young population will provide further boost to demand
• Industry is set to expand at a CAGR of 15 per cent over 2011-2016, one of the highest rates globally
• Television and AGV segments expected to lead industry growth; opportunities in digital technologies as well
• Higher FDI inflows • Increasing M&A activity • More big-ticket deals such as Walt
Disney-UTV, Sony-ETV and Zee-Star • Entry of big players across all
segment of industry
• Policy sops, increasing FDI limits
• Measures such as digitisation of cable distribution to improve profitabilit and ease of institutional finance
• Increasing liberalisation and tariff relaxation
Market Size: USD30.4 billion
2016E
Market Size: USD15.2 billion
2011
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
Growing demand Opportunities
Higher investments Policy support
MARCH
2013
4 4
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: UTV, SUN TV
Opportunities
Useful information
For updated information, please visit www.ibef.org
Entertainment MARCH
2013
5 5 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Entertainment
Entertainment
Television
Film
AGV Radio
Music
Others
Source:: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects
The sector is split into seven segments
MARCH
2013
6 6 For updated information, please visit www.ibef.org
The Indian entertainment industry is growing rapidly … (1/2)
→ The total market size of industry expanded to USD15.2 billion in 2011 from USD9.2 billion in 2006, a CAGR of 10.6 per cent
→ The industry recorded one of the highest growths in the world in 2010 (11.2 per cent); in 2011 growth picked up even further to touch 12.6 per cent
Market size (USD billion)
Source:: KPMG report 2012, Aranca Research
MARKET OVERVIEW AND TRENDS
Entertainment
Notes: CAGR - Compound Annual Growth Rate
9.2 10.7
11.8 12.1 13.5
15.2
2006 2007 2008 2009 2010 2011
CAGR 10.6 %
MARCH
2013
7 7 For updated information, please visit www.ibef.org
The Indian entertainment industry is growing rapidly … (2/2)
→ During 2006-11, television revenues expanded at a CAGR of 11.4 per cent to USD6.9 billion
→ Advertising revenue growth has been behind the consistent rapid growth of the television industry
→ Over the same period, revenues in the print segment expanded to USD4.4 billion, a CAGR of 10.0 per cent
→ The fastest growth during this period was however in the AGV segment; it’s CAGR was 16.6 per cent
Size of major industry segments (USD billion)
Source:: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX;
VFX - Visual Effects
MARKET OVERVIEW AND TRENDS
Entertainment
0.3
1.8
2.7
4
0.6
1.9
4.4
6.9
0 2 4 6 8
AGV
Film
Television
2011 2006
MARCH
2013
8 8 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Entertainment
Segmental composition of entertainment (2011)
Source: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX,
VFX - Visual Effects
45.2%
28.7%
12.8%
4.3%
1.6% 1.2%
6.3%
Television
Film
AGV
Radio
Music
Others
TV has the highest share in the sector; AGV is one of the fastest growing
→ Total market size in 2011 was USD15.2 billion
→ The entertainment industry continues to be dominated by television, print and films; together they have a 86.7 per cent market share
→ AGV has emerged as one of the fastest growing segments with revenues growing by about 31 per cent during 2011
MARCH
2013
9 9 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Company Business description
Star India Pvt Ltd • Fully owned subsidiary of News Corporation • Portfolio includes 35 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
Entertainment
Source: Company Websites, Business Week, KPMG report 2012 Aranca Research Notes: M&E - Media and Entertainment
Key players in the entertainment industry - Television
MARCH
2013
10 10 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
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 3.7 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 7 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
Entertainment
Source: Company Websites, The Times of India, Aranca Research Notes: CAGR - Compound Annual Growth Rate, FY - Financial Year
Key players in the entertainment industry - Print
MARCH
2013
11 11 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
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
Entertainment
Source: Company Websites, Business Week, Aranca Research
Key players in the entertainment industry - Film
MARCH
2013
12 12 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
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
Entertainment
Source: Company Websites, Business Week, Aranca Research Notes: VAS - Value Added Services
Key players in the entertainment industry - Music
MARCH
2013
13 13 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Television
• Television penetration in India is at about 60 per cent
• The television industry has been aided by strong growth in advertising
• Television subscription accounts for around 65 percent of revenues in 2011 whereas advertising accounted for the rest
• The share of subscription to the total revenue is expected to increase to 69 per cent by 2016
• Unbundling of products to increase profitability
• 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
• Rising circulation of English, Hindi as well as regional language dailies
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 Research Notes: DTH - Direct to Home, 3D - Three Dimension
Entertainment
Notable trends in the entertainment industry … (1/2)
MARCH
2013
14 14 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Animation, Gaming and VFX (AGV)
• Growing focus on the ‘kids genre’ and rise in dedicated channels for them
• Increase in animation movies in theatres and use of animation and VFX in TV advertising
• Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian players
• Content localisation by Indiagames (by launching T20fever.com) and by Zapak (by launching ICC World Cup 2011 games)
Radio
• Increasing FM enabled radio phones, mobiles and car music systems
• During 2010, there were a total of 245 channels operating across India
• Government has introduced favorable guidelines for expansion of the third phase of FM radio broadcasting services, which will bring 294 towns and 839 stations under FM coverage
• Earlier only educational institutions were permitted to set up a community radio; in 2008 liberalisation of policy on community radio took place and currently 29 community radio stations are operational in the country
Entertainment
Notable trends in the entertainment industry … (2/3)
Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012 Economic Times, Aranca Research
Notes: AGV - Animation, Gaming and VFX, 3D - Three Dimension, VFX - Visual Effects, FM - Frequency Modulation
MARCH
2013
15 15 For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
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
Entertainment
Notable trends in the entertainment industry … (3/3)
Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012 Economic Times, Aranca Research
Notes: AGV - Animation, Gaming and VFX, 3D - Three Dimension, VFX - Visual Effects, FM - Frequency Modulation
MARCH
2013
16 16
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: UTV, SUN TV
Opportunities
Useful information
For updated information, please visit www.ibef.org
Entertainment MARCH
2013
17 17 For updated information, please visit www.ibef.org GROWTH DRIVERS
Strong demand and policy support driving investments
Entertainment
Strong
government
support
Growing demand
Inviting Resulting in
Growing demand Increasing investments Policy support
Higher real incomes and
changing lifestyles
Falling prices, increasing penetration
Growing, young
consumer base
Policy sops, favourable FDI
climate
Measures to improve
profitability across segments
Increasing liberalisation,
tariff relaxation
Higher FDI inflows
Increasing M&A activity
Increasing participation of
big players
Source: ICRA, PwC, Business Standard, Business Today, Aranca Research Notes: M&A - Merger and Acquisition, FDI - Foreign Direct Investment
MARCH
2013
18 18 For updated information, please visit www.ibef.org
→ Incomes have been rising at a brisk pace in India and will continue to do so given the country’s strong economic growth prospects; nominal per-capita income is estimated (IMF) to have recorded a CAGR of 12.5 per cent over 2001-11
→ Rising incomes, with its positive impact on the consumer base, will be the key growth driver for the entertainment industry (across the country)
→ As the proportion of ‘working age population’ in total population increases, per-capita income and GDP are expected to grow higher
Entertainment
GROWTH DRIVERS
Rising per-capita income in India
Source: IMF, Aranca Research
-5%
0%
5%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
2,500
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
F2
01
3F
20
14
F2
01
5F
20
16
F2
01
7F
Per Capita income, USD, LHS Annual growth rate
Multiple factors will drive growth in demand … (1/2)
MARCH
2013
19 19 For updated information, please visit www.ibef.org
→ Apart from the impact of rising incomes, widening of the consumer base will also be aided by expansion of the middle class, increasing urbanisation, and changing lifestyles
→ The entertainment industry will also benefit from continued rise in the propensity to spend among individuals; empirical evidence points to the fact that decreasing dependency ratio leads to higher discretionary spending on entertainment
Changing income dynamics over the years
Source: McKinsey Quarterly Report, Aranca Research
Entertainment
GROWTH DRIVERS
0
10
20
30
40
50
60
70
2005 2010 2015 2020 2025
Deprived Globals Aspirers Strivers Seekers
Seekers : annual income INR200,000 - 500,000
Globals : annual income > INR1000,000
Strivers : annual income INR500,000 - 1000,000
Aspirers : annual income INR90,000 - 200,000
Deprived : annual income < INR90,000
Million households
Multiple factors will drive growth in demand … (2/2)
MARCH
2013
20 20 For updated information, please visit www.ibef.org
Entertainment
Television
• 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 for broadcast carriage service providers who upgrade to digital and addressable environments
• No restriction on foreign investment for uplinking and downlinking of TV channels other than news and current affairs
Film
• 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
• 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 26 per cent from 20 per cent
• 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 licence fees on the basis of ‘net income’ so as to provide relief to loss making radio players
Source: ICRA, PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research Notes: GST - Goods and Services Tax, FDI - Foreign Direct Investment
GROWTH DRIVERS
Policy support aiding sector growth… (1/2)
MARCH
2013
21 21 For updated information, please visit www.ibef.org
Entertainment
• 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 magazines
• FDI/NRI investment upto 26 per cent in publications of scientific and technical magazines/ specialty journals/ periodicals
Animation, Gaming and VFX (AGV)
• 100 per cent FDI allowed in the sector through automatic route provided it is in compliance with Reserve Bank of India guidelines
Music
• 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 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
Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research
Notes: GST - Goods and Services Tax, FDI - Foreign Direct Investment, NRI - Non Resident Indian
GROWTH DRIVERS
Policy support aiding sector growth… (2/2)
MARCH
2013
22 22 For updated information, please visit www.ibef.org
→ Consolidation will be the major route to grow inorganically for entertainment companies in order to expand their portfolios and enter into new regions
→ A few big deals have come about, the most notable ones being Walt Disney-UTV and TV18-ETV (together amounting to around USD700 million)
Source: Company ‘s news, KPMG report 2011, Aranca Research
Entertainment
GROWTH DRIVERS
Mergers and Acquisitions (M&A) deals during 2011-2012
Acquirer Target Deal date Deal value
(USD million)
TV18 Eenadu Group Jan 2012 395
Walt Disney UTV Feb-2012 300
Educational Trustee Company
Metronation Chennai
Television Mar-2012
3.2
Blackstone
Jagran Media Network
Jul-2011
46.9
Samara Capital Newswire18 Dec-2012 18.8
Increasing investments in the sector - key deals and FDI inflows … (1/2)
MARCH
2013
23 23 For updated information, please visit www.ibef.org
→ FDI inflows into the entertainment sector between April 2000 and March 2012 stood at USD2.9 billion
→ By March 2012, the share of FDI in ‘Information and Broadcasting’ was 1.8 per cent of total FDI inflows into the country
→ Demand growth, supply advantages, and policy support have been the key drivers in attracting FDI
Source: DIPP, Aranca Research Notes: DIPP - Department of Industrial Policy and Promotion
Entertainment
GROWTH DRIVERS
Cumulative FDI inflows into Information and Broadcasting from April 2000
0.6
1.3
1.8
2.2
2.9
FY08 FY09 FY10 FY11 FY12
CAGR 48.0%
Increasing investments in the sector - key deals and FDI inflows … (2/2)
MARCH
2013
24 24
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: UTV, SUN TV
Opportunities
Useful information
For updated information, please visit www.ibef.org
Entertainment MARCH
2013
25 25 For updated information, please visit www.ibef.org
Television content
Motion pictures
Games content
Broadcasting
Interactive
Started as a content provider for Doordarshan
Ventured into internet content
creation and aggregation
Launched IPO as UTV Software
communications Ltd
Launched Hungama TV
Entertainment
SUCCESS STORIES: UTV, SUN TV
Disney becomes a majority share holder with a stake of 32.1%
Source: Company annual report, Company website, Aranca Research Notes: IPO - Initial Public Offering
Deal with Disney to dub its content
into Indian languages
Acquires Indiagames Ltd, enters gaming software and
content
Became world’s first company to record
over 100 million downloads on
Nokia store
1990 1996 2000 2004 2005 2007 2008 2012
UTV - One of the largest media conglomerates
MARCH
2013
26 26
1985 1993 2000 2003 2005 2007 2008 2012
‘SUN TV’ is launched with
daily three hours of programming
Launches SUN Direct to provide Direct-to-Home (DTH) services
Launches three pay channels and four
ad - free action movie channels
For updated information, please visit www.ibef.org
Direct to Home
Motion pictures
Radio
Newspaper
Magazine
Founded as Sumangali
Publications
Launches a slew of other channels in
various South Indian languages
Acquires Dinakaran newspaper, Tamil
Nadu’s leading daily
Starts its first FM Channel
‘Sumangali FM’
Entertainment
SUCCESS STORIES: UTV, SUN TV
Enters Film Production and
Distribution through ‘SUN Pictures’
Source: Company website, Aranca Research Notes: FM - Frequency Modulation
Broadcasting
SUN TV: The South - Indian behemoth
MARCH
2013
27 27
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: UTV, SUN TV
Opportunities
Useful information
For updated information, please visit www.ibef.org
Entertainment MARCH
2013
28 28
15.2 17.3
19.7 22.2
25.0
30.4
2011 2012E 2013E 2014E 2015E 2016E
For updated information, please visit www.ibef.org OPPORTUNITIES
Entertainment
→ Over 2011-16, the total market size is expected to rise at a CAGR of 14.9 per cent to USD30.4 billion
→ The next five years will see digital technologies increase their influence across the industry leading to a sea change in consumer behaviour across all segments
Source: KPMG report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research
Market size (USD billion)
CAGR 14.9 %
The entertainment industry is slated for rapid growth … (1/2)
MARCH
2013
29 29 For updated information, please visit www.ibef.org OPPORTUNITIES
Entertainment
→ Television will continue to be the lead contributor to overall industry growth; the segment is estimated to expand in size to USD15.3 billion by 2016 (CAGR of 17.3 per cent since 2011)
→ Animation, Gaming and VFX (AGV) is likely to witness the fastest expansion - a CAGR of 27.2 per cent (2011-16); its size is set to touch USD2.0 billion in 2016
Source: KPMG report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research
Notes: AGV - Animation, Gaming and VFX; VFX - Visual Effects
Size of major industry segments (USD billion)
0.6
1.9
4.4
6.9
2.0
3.1
6.5
15.3
0 5 10 15 20
AGV
Film
Television
2016 2011
The entertainment industry is slated for rapid growth … (2/2)
MARCH
2013
30 30 For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities across segments in the entertainment industry … (1/2)
Entertainment
• Television distribution is projected to garner a share of 62 per cent in the television pie by 2015 (as addressable digitisation is expected to cover the entire country by then)
• Television advertisement is also expected to witness robust growth; its share in the
advertising industry is expected to touch 42.5 per cent by 2015 from 41 per cent in 2010
Television
• Newspapers and niche magazines are likely to drive industry growth • Accelerated growth is forecasted in regional print and local news segments
• The Indian animation industry was worth USD511 million in 2010 and is expected to expand at CAGR of 23 per cent to USD961 million by 2013
• Growth in international animation films, especially 3D productions, and the subsequent
work for Indian production houses will help growth in this segment
AGV
Source: KPMG Report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: 3D - Three Dimension, AGV - Animation, Gaming and VFX; VFX - Visual Effects
MARCH
2013
31 31 For updated information, please visit www.ibef.org OPPORTUNITIES
Opportunities across segments in the entertainment industry … (2/2)
Source: KPMG report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: 3D - Three Dimension
Entertainment
• Size of the Indian film industry is expected to touch USD3.1 billion by 2016, up from USD1.9 billion in 2011
• 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
Film
• 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
Music
• Phase III of e-auctions for FM radio licences will provide an impetus to the segment
• Radio advertising is another area likely to experience accelerated growth Radio
MARCH
2013
32 32
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: UTV, SUN TV
Opportunities
Useful information
For updated information, please visit www.ibef.org
Entertainment MARCH
2013
33 33 For updated information, please visit www.ibef.org USEFUL INFORMATION
Entertainment
→ Animation encompasses three key segments; these are ‘Animation Entertainment’, ‘Visual Effects (VFX)’ and ‘Custom Content Development‘
→ India’s animation industry has been growing at a brisk pace; from a size of USD177 million in 2005, the sector is forecasted to post a CAGR of 23.6 per cent over 2005-13 (to USD961 million)
Source: ’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca Research Note: E - Estimates, VFX - Visual Effects
177
511
631
961
2005 2010 2011E 2013E
CAGR 23.6%
16%
20%
64%
Animation VFX
AnimationEntertainment
Custom ContentDevelopment
Size of the animation industry in India (USD million) Share of sub-segments in India’s animation industry
Appendix: Brief overview of the animation industry in India
MARCH
2013
34 34 For updated information, please visit www.ibef.org USEFUL INFORMATION
Entertainment
→ Gaming can be classified under three segments - ‘Personal Computer Games (PC)’, ‘Mobile Games’, ‘Console Games’ and ‘Online Games’
→ In 2010, ‘Console Games’ (USD88 million) recorded the highest revenue among different segments of the gaming industry in India, followed by ‘Mobile Games’ (USD60 million)
Opportunities* for Indian gaming firms across the segment’s value chain
Concept Creation Pre-production Development Post-Production
and 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
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
Appendix: Gaming in India and opportunities for domestic firms
MARCH
2013
35 35 For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry Associations … (1/2)
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
Entertainment MARCH
2013
36 36 For updated information, please visit www.ibef.org USEFUL INFORMATION
Industry Associations … (2/2)
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
Entertainment MARCH
2013
37 37 For updated information, please visit www.ibef.org
Glossary
→ 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 48
→ VAS: Value Added Services
→ VFX: Visual Effects
→ Wherever applicable, numbers have been rounded off to the nearest whole number
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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. 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 presentation), modified or in any 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 this
presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content 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 in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any 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 on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
For updated information, please visit www.ibef.org DISCLAIMER
Entertainment MARCH
2013
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