DEFINITION

Companies that provide, operate, or engage

in amusements and attractions, entertainment exhibitions, ticket sales and also those involved in providing entertainment through radio, television, films and theatre.

ENTERTAINMENTINDUSTRY

LIVEENTERTAINTM

ENT

ELECTRONICENTERTAINM

ENT

MASS MEDIAENTERTAINTM

ENT

SUBSEGMENT

GENRE

EXAMPLES

CORPORATE

• PRODUCT LAUNCHES• PROMOTIONS• TRAINING/MEETS• ANNUAL PARTIES• EXHIBITIONS• TRADE FAIRS• CELEB MANAGEMENT

• AD ASIA• BACARDI• MOTIVATION SEMINAR• CHRISTMAS PARTY• AUTO EXPO• LAKME FASHION WEEK

FACILITATIVE/COMPETITIVE

• AWARDS• CONTESTS• SEARCH• BEAUTY PAGEANTS

• MANIKCHAND FILM FAIR AWARDS• FEMINA MISS INDIA• CHANNEL V POP STAR

ARTS

• THEATER• MUSIC• DANCE• CIRCUS• MAGIC SHOWS

• PLAYS• ENGLISH, HINDI etc• DISCOTHEQUE• SAMRAT CIRCUS•CHHOTA JADUGAR

SPORTS• SPORTING EVENTS • WORLD CUP CRICKET

• GRAND SLAM TOURNAMENT

FESTIVALS• GOVT. SPONSORED• CORPORATE SPONSORED

• GOA CARNIVAL• KUMBH FAIR• RAJASTHAN DESERT FESTIVAL

PERSONAL• BIRTHDAY PARTIES• WEDDINGS• GENERAL PARTIES

LIVE ENTERTAIN

MENT INDUSTRY

EXHIBITION ENTERTAINMENT INDUSTRY• AMUSEMENT PARK• FUNFAIR• MUSEUM• ZOO• TRADE SHOW

MASS MEDIA ENTERTAINMENT INDUSTRYFILM INDUSTRY• FILM STUDIOS• MOVIE THEATRESBROADCASTING INDUSTRY• TELEVISION • RADIO PRINT MEDIAMUSIC INDUSTRYANIMATION & VFX INDUSTRYADVERTISING INDUSTRYFASHION INDUSTRYTHEME PARKSDISCOTHEQUES

ELECTRONIC ENTERTAINMENT INDUSTRY• COMPUTER GAMES• VIDEO GAMES

CORPORATE35%

SPORTS5%

ARTS & THEATER20%

FELICI-TATIONS & CON-TESTS20%

FES-TIVAL

S5%

PER-SONAL

15%

SEGMENT WISE ANALYSIS OF LIVE ENTERTAINMENT INDUSTRY

RADIO25%

ANIMATION &VFX25%

FILM INDUS-

TRY14%

AD-VER-

TISING IN-

DUS-TRY14%

TELE-VISION

11%

PRINT MEDIA11%

MASS MEDIA ENTERTAINMENT INDUSTRY(% GROWTH)

TELEVISION• 80 million pay television homes• 450 television channels• Average monthly expenditure Rs. 175

0

50

100

150

200

250

300

350

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

No

of c

hann

els

New launches & delivery mechanisms lead to exponential growth in number of channels

An Explosion Of Channel Choices

Source : TAM

Homegrown channels vs foreign networks

Indian channels dominate most of the markets / genres (Zee, Sun , ETV, Aaj Tak , NDTV) Zee’s improved performance vs Star Plus

decline at national level Regional channels dominate in TN, AP,

Karnataka, Kerala, WB , Maharashtra News, Hindi movie , music genres dominated by

Indian channels In sports, new entrant Neo Sports takes on

ESPN, Star Sports, Ten Sports.

Reaching out to Indian diaspora

Leading TV channels have presence in foreign markets through distribution tie ups

Zee Presence in Asia Pacific, Africa, UK, US & Europe Reach of more than 120 countries & 350 million viewers

globally Sun, NDTV, Aaj Tak, Eenadu , Asianet and other channels beaming to different parts of the world

Channels also accessed through dish antenna in regions without cable connection

Dedicated programming targetting overseas Indians Eg : UAE band on Asianet.

Zee coverage

RADIO• 350 radio stations

MUSIC• 10,000 music tracks released annually.

REALITY SHOW• On an average, about 7 million cell phone text messages per episode.• At Rs.4 per SMS, it adds up to Rs.28 million per episode. • Over a year (52 weeks), that is an astounding Rs.1,460 million.• On a 50-50 split between the channel and the mobile operator, it works out to Rs.730

million to the channel.

MOVIES• 1000 movies released every year• 3.2 billion movie tickets sold annually• Average price of ticket Rs. 50

Over 800 films are censored/released by IFI each year in over 15 languages.

The Indian film industry is the largest in the world in terms of the ticket sales and the number of films produced annually (877

feature films and 1177 short films were released in the year 2003 alone).

Movie tickets in India are among the cheapest in the world India accounts for 73% of movie admissions in the Asia-Pacific region,

and earnings are currently estimated at US$2.9 billion.

Fourteen million Indians go to the movies on a daily basis (about 1.4% of the population of 1 billion) and pay the equivalent to the

average Indian's day's wages (US $1-3) to see a film.

The Central Board of Film Certification of India cites on its website that every three months an audience as large as India's

billion-strong population visits cinema halls

Indian Film Industry (IFI) – facts and figures

Indian Investment in the US

Reliance Entertainment has been purchasing movie theaters in the U.S., targeting areas with the densest populations of the Indian diasporas in the U.S. and bringing them Bollywood movies as well as regional Indian films.At the 2008 Cannes Film Festival, Reliance announced that they have forged a number of agreements with production houses in an attempt to become one of the world's largest entertainment conglomerates. Partners include Nicholas Cage's Saturn Productions, Jim Carrey's JC 23 Entertainment, George Clooney's Smokehouse Productions, Tom Hanks' Playtone Productions and Brad Pitt's Plan B Entertainment.

Reliance funded DreamWorks' exit from Paramount by investing $550 million. Dreamworks has since left Paramount and linked itself to Universal. The deal amounts to a marriage of some of the biggest names in the Hollywood and Indian business worlds, with Reliance getting a large stake in the new company.

Regional Indian Film Industries

Bollywood: Hindi Film Industry

Kollywood: Tamil Film Industry

Bengali Film Industry

Sandalwood: Kannada Film Industry

Tollywood: Telugu Film Industry

Marathi film industry

Malayalam film industry

The Indian film industry is highly regionalized with the largest language groups supporting major regional industries.

The Telugu film industry produces the largest number of films every year in India, with about 245 films produced in 2006.

Revenue Sharing

Week Producer’s share Distributor’s share

1st week 50% 50%2nd week 57.5% 42.5%3rd week 62.5% 37.5%4th week 70% 30%*Films that gross more than $3.6 million will

get a 2.5% bonus

BIGGEST HITS IN ENTERTAINMENT INDUSTRY

Big money involveThe BCCI has already made close to US$ 1.75 billion solely from the sale of TV rights ($908 million), promotion ($108 million) and franchises (approximately $700 million). Players are expected to earn close to US$1 million for a three-year contract.

Television RightsIndia's Sony Television network and Singapore-based World Sports Group secured the rights of the Indian Premier League. The record deal is for ten years at a cost of US$1.026 billion. As part of the deal, the consortium will pay the BCCI US$918 million for the telecast rights and US$108 million for the promotion of the tournament.

Title Sponsorship Rights

Indian real estate developer DLF Universal secured exclusive rights to the Indian Premier League title sponsorship worth INR 200 crore (over US$50 million) for five years.

Franchise owner and price paid

Bangalore - Vijay Mallya/UB group - USD 111.6 million 

Chennai Super Kings - India Cements - USD 91 million 

Delhi DareDevils - GMR group - USD 84 million 

Hyderabad - Deccan Chronicle - USD 107 million 

Jaipur - Emerging Media - USD 67 million 

Kolkata - Shah Rukh Khan's Red Chillies Entertainment in partnership with Juhi Chawla and Jay Mehta - USD 75.09 million 

Mohali - Preity Zinta, Ness Wadia (Bombay Dyeing), Karan Paul (Apeejay Surendera Group) and Dabur's Mohit Burman - USD 76 million 

Mumbai - Mumbai Mukesh Ambani's Reliance Industries Limited - USD 111.9 million 

CHALLENGESPiracyLack of uniform Media policy for Foreign

InvestmentLevel Playing field with the IncumbentsContent RegulationPrice Regulation in the television IndustryCross Media OwnershipLack of empowered RegulatorsMerging of FIIs and FDIs capsTax Treatment of foreign broadcasting

companiesAdvanced Technology

tele

vision

Filmed

ent

erta

inm

ent

prin

t med

iara

dio

mus

ic

anim

, VFX

OoH

adv

ertis

ing

Onl

ine

adve

rtisin

g

128.7

59.9

97.8

2.4 6.7 0 8.5 0.6

Revenue-04

Series1

television42%

Filmed entertainment20%

print media32%

radio1%

music2%

OoH advertising3%

Online advertising0.6%

Distribution of revenue on E&M Industry

tele

vision

Filmed

ent

erta

inm

ent

prin

t med

iara

dio

mus

ic

anim

, VFX

OoH

adv

ertis

ing

Onl

ine

adve

rtisin

g

265.7

118

168

9.8 5.6 18.5 16 17.5

09

Series1

television43%

Filmed entertainment19%

print media27%

radio2%

music1%

anim,

VFX3%

OoH advertising3%

Online advertising3%

distribution09

Print Media

Growth rate of Indian Print Media Industry

2004-2007: 13.3%.2008: 7.5% (Worse off than television as their

sponsors were badly hit and tv sponsors such as telecom and fmcg were not)

2009-2013: 5.7%

KEY PROBLEMS

Advertisements from realty, banking/finance, IT, durables nosedived.

Price of newsprint ( 50-60% of production cost) sky rocketed and touched 1000$ per quintal.

NEW REVENUE STREAMS

Jagran Prakash: OoH advertising and event management.

Mint : Partenered with CNBC TV-18HT Media: Launched Shine.com, Fever 104

fmDeccan Chronicle: Deccan Chargers.

The digital age

Ads moving from news papers to online channels

Structural changes being accelerated by global downturn

News papers will co-exist with other media but in different formats.

Insight and analysis is still valued higher than breaking news.