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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
EntertainmentMARCH
2013
33
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 ResearchNotes: 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
44
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
EntertainmentMARCH
2013
55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Entertainment
Entertainment
Television
Film
AGVRadio
Music
Others
Source:: KPMG report 2012, Aranca ResearchNotes: AGV - Animation, Gaming and VFX, VFX - Visual Effects
The sector is split into seven segments
MARCH
2013
66For 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
2006 2007 2008 2009 2010 2011
9.210.7
11.8 12.113.5
15.2CAGR 10.6 %
MARCH
2013
77For 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
AGV
Film
Television
0 1 2 3 4 5 6 7 8
0.3
1.8
2.7
4
0.6
1.9
4.4
6.9
2011 2006
MARCH
2013
88For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS
Entertainment
Segmental composition of entertainment (2011)
Source: KPMG report 2012, Aranca ResearchNotes: AGV - Animation, Gaming and VFX,
VFX - Visual Effects
45.2%
28.7%
12.8%
4.3%
1.6%1.2%
6.3%
TelevisionPrintFilmAGVRadioMusicOthers
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
99For 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 ResearchNotes: M&E - Media and Entertainment
Key players in the entertainment industry - Television
MARCH
2013
1010For 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
1111For 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
1212For 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
1313For 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 ResearchNotes: DTH - Direct to Home, 3D - Three Dimension
EntertainmentNotable trends in the entertainment industry … (1/2)
MARCH
2013
1414For 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
EntertainmentNotable trends in the entertainment industry … (2/3)
Source: PwC India Entertainment and Media Outlook 2011,KPMG report 2012 Economic Times, Aranca ResearchNotes: AGV - Animation, Gaming and VFX, 3D - Three
Dimension,VFX - Visual Effects, FM - Frequency Modulation
MARCH
2013
1515For 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
EntertainmentNotable trends in the entertainment industry … (3/3)
Source: PwC India Entertainment and Media Outlook 2011,KPMG report 2012 Economic Times, Aranca ResearchNotes: AGV - Animation, Gaming and VFX, 3D - Three
Dimension,VFX - Visual Effects, FM - Frequency Modulation
MARCH
2013
1616
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
EntertainmentMARCH
2013
1717For 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 ResearchNotes: M&A - Merger and Acquisition, FDI - Foreign Direct Investment
MARCH
2013
1818For 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
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
F20
13F
2014
F20
15F
2016
F20
17F
0
500
1,000
1,500
2,000
2,500
-5%
0%
5%
10%
15%
20%
25%
30%
Per Capita income, USD, LHSAnnual growth rate
Multiple factors will drive growth in demand … (1/2)
MARCH
2013
1919For 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
2020For 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 InvestmentGROWTH DRIVERS
Policy support aiding sector growth… (1/2)
MARCH
2013
2121For 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
2222For 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 TargetDeal date
Deal value (USD
million)
TV18 Eenadu Group Jan 2012 395
Walt Disney UTV Feb-2012 300
Educational Trustee
Company
Metronation Chennai
TelevisionMar-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
2323For 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 ResearchNotes: DIPP - Department of Industrial Policy and
Promotion
Entertainment
GROWTH DRIVERS
Cumulative FDI inflows into Information and Broadcasting from April 2000
FY08 FY09 FY10 FY11 FY12
0.600000000000001
1.3
1.8
2.2
2.88CAGR48.0%
Increasing investments in the sector - key deals and FDI inflows … (2/2)
MARCH
2013
2424
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
EntertainmentMARCH
2013
2525For 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 communicatio
ns 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 ResearchNotes: 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
2626
1985 1993 2000 2003 2005 2007 2008 2011
‘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 ResearchNotes: FM - Frequency Modulation
Broadcasting
SUN TV: The South - Indian behemoth
MARCH
2013
2727
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
EntertainmentMARCH
2013
2828
2011 2012E 2013E 2014E 2015E 2016E
15.2 17.3
19.722.2
25
30.4
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)
CAGR14.9 %
The entertainment industry is slated for rapid growth … (1/2)
MARCH
2013
2929For 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)
AGV
Film
Television
0 2 4 6 8 10 12 14 16 18
0.600000000000001
1.9
4.4
6.9
2
3.1
6.5
15.3
2016 2011
The entertainment industry is slated for rapid growth … (2/2)
MARCH
2013
3030For 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
3131For 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
3232
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
EntertainmentMARCH
2013
3333For 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
2005 2010 2011E 2013E
177
511
631
961
CAGR 23.6
%
16%
20%
64%
Animation VFX
Animation Enter-tainment
Custom Content Development
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
3434For 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 TestingFinal Testing
Console Very Strong Strong Good Good Good
Mobile Good Good Good Good Good
PCStrong
Strong Good Good Good
Online Strong Strong Good Good Good
Source: ‘’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca ResearchNotes: *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
3535For 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 050Tel: 91-22-26486344/45/1760Fax: 91-22-26480757 Website: www.indianmotionpictures.com/imppa/index.html
The Film and Television Producers Guild of IndiaG - 1, Morya House, Veera Industrial Estate,Off Oshiwara Link Road, Andheri (W),Mumbai - 400 053 Tel: 91-22-66910662Fax: 91-22-66910661E-mail: [email protected] Website: www.filmtvguildindia.org
Newspapers Association of India (NAI)A - 115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur,Delhi - 110092Tel: 91-9971847045, 9810226962E-mail: [email protected] Website: www.naiindia.com
Entertainment
MARCH
2013
3636For 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: 91-124-4385887e-mail: [email protected]: www.aroi.in
The Indian Music Industry (IMI)Crescent Towers, 7th FloorB - 68, Veera Estate, Off New Link Road, Andheri West,Mumbai - 400 053 Tel: 91-22- 26736301/02/03Fax: 91-22-26736304E-mail: [email protected] Website: www.indianmi.org
Entertainment
MARCH
2013
3737For 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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Entertainment
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2013
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