Indian Media Industry to hit Rs 1.157 trillion by 2012: FICCI
Televisionpoint.com Correspondent | Mumbai
The Indian Entertainment and Media Industry has recorded a growth of 17 per cent in 2007, over 2006 with the industry estimated at Rs 513 billion in last year as compared to Rs 438 billion in 2006. In the last four years (2004-2007), the industry recorded a cumulative growth of 19% on an overall basis.
According to the FICCI - PricewaterhouseCoopers 2008 Report on Indian Entertainment and Media Industry to be unveiled at the FICCI-FRAMES 2008 in Mumbai later this month, the Indian E&M Industry is projected to grow by 18% cumulatively over the next five years to reach Rs 1.157 trillion by 2012.
The report 'Indian Entertainment and Media Industry - Sustaining Growth' reveals that the growth of 17 per cent has proved wrong the forecast of a 15 per cent growth in the previous year. In 2007, foreign investments in the E&M sector reached a record high of $ 211 million (approximately Rs 8.5 billion). This was seen as result of the extremely high number of investment deals announced in 2006 and the years before.
The current size of Television industry is Rs 226 billion, which is projected to grow to Rs 600 billion in 2012. The Television industry is transforming with digitalization of distribution networks through increase in DTH subscribers which projected to grow at 44% CAGR over the next five years.
CAS was made mandatory from January 1, 2007, but saw lukewarm response during the year. High growth in advertising revenues and emergence of alternate revenue streams especially SMS is driving the launch of several new channels, especially in the 'general entertainment' genre.
The advertising industry contributed a share of 38% in the overall industry revenues of 2007, up by a percentage from 37% in 2006. The advertising industry itself recorded a growth of 22% over the previous year and thus contributed an estimated Rs 196 billion in 2007 as compared with Rs 161 billion in 2006. In the last four years 2004-2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.
The advertising industry is experiencing a paradigm shift with digital platforms enabling to reach the critical mass. This had resulted in consumers shifting from passive mediums to spending more time on digitally interactive mediums. Internet and mobile are two keys enablers for the same. Internet advertising is estimated at Rs 4.2 billion in 2008 growing at 32% CAGR, expected to touch Rs 11 billion in 2012.
The Print Media industry current size in 2007 is Rs 149 billion, and its projected size in 2012 is Rs 281 billion. New magazine launches in 2007 dominated the print industry in 2007 as a result of favorable FDI policies and manifested growth potential especially in the high-end niche genres. Newspaper publishing was dominated with the increased regional publications
The current size of Filmed Entertainment is Rs 96 billion and is expected to reach Rs 176 billion in 2012. Emergence of various revenue streams beyond traditional box office is changing the face of the Indian filmed entertainment industry such as television, mobile, internet, home video, merchandise, music, re-make rights and several branded entertainment opportunities.
Advent of 'Studio Model' is further de-risking the business. 2007 saw interests by Hollywood studios in India such as Sony Pictures, Viacom and Fox. Entry of players like Moser Baer is changing the Indian model for Home Video from rental to a sell-through, and incumbents are following suit. Talent is becoming 'commoditized', huge rush in 2007 to lock-in talent for a long term period.
With over 150 radio channels have operationalised by 2007 thus increasing the spread of radio, the current size of Radio Industry is Rs 6.2 billion and the projected size in 2012 is Rs 18 billion.
Phase-III plans have been drawn up which recommend additional 560 radio stations in the next five years. Regulator TRAI has recommended to Government for allowing news on radio and increasing the FDI limit amongst other provisions, these recommendations are expected to make radio more favourable with advertisers.
This report will be officially released by Information and Broadcasting Minister Priya Ranjan Dasmunsi at the inauguration of FICCI-FRAMES 2008, the biggest Global Convention in Asia on the Business of Entertainment, in March 25 in Mumbai. Over 2500 Indian and foreign delegates from nearly 20 countries will engage in seminars and networking business sessions and social get-together's in the three-day meet. The annual meet is organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with the entertainment industry and the I and B Ministry.
While the partner country is Switzerland, delegates from 16 other countries besides India have already registered for the mega event. They are Australia, Canada, France, Greece, Germany, Hong Kong, Italy, Malaysia, Pakistan, South Africa, Thailand, the United Arab Emirates, the United Kingdom, United States, Korea, and New Zealand.
The subjects to be discussed include the Changing face of TV news, Resurgence of the language media, Developing animation content, New age technology and emerging production pipelines in animation, Raising capital, Linguistic diversity in Indian cinema, Radio for the masses, Scope of international co-productions, Talent crunch in the industry, Film marketing & distribution, Importance of digital cinema, Animation, IP creation, protection and life cycle, Visual effects, Mobile entertainment, Sports as entertainment, and Revenue streams in multiplexes.
The inaugural session will be addressed by eminent speakers like Swiss Ambassador to India Dominique Dreyer, I&B Ministry Secretary Asha Swarup; Viviane Reding, European Commissioner, Information Society & Media, European Commission;Stewart Beck, Assistant Deputy Minister, Investment, Innovation and Sectors, Foreign Affairs and International Trade, Canada; FICCI Entertainment Committee Chairman Yash Chopra, FICCI Entertainment Committee Co-Chairman and Sony Entertainment CEO Kunal Dasgupta; and Amit Khanna, Chairman, Reliance Entertainment Pvt. Ltd. and Chairman of the FICCI Convergence Committee.
Timmy Kandhari, Executive director and Leader TICE (Technology, Infocomm and Entertainment & Media) Practice in PricewaterhouseCoopers in India, says "Digitalization is the future for most segments and companies have to adopt this revolution with appropriate infrastructure, relevant business models, and technology upgradation along with associated costs. As digitization sets in, it will lead to reduction in costs for content and delivery in the long run, shifting the emphasis on quality content."
The Indian Entertainment and Media Industry has recorded a growth of 17 per cent in 2007, over 2006 with the industry estimated at Rs 513 billion in last year as compared to Rs 438 billion in 2006. In the last four years (2004-2007), the industry recorded a cumulative growth of 19% on an overall basis.
According to the FICCI - PricewaterhouseCoopers 2008 Report on Indian Entertainment and Media Industry to be unveiled at the FICCI-FRAMES 2008 in Mumbai later this month, the Indian E&M Industry is projected to grow by 18% cumulatively over the next five years to reach Rs 1.157 trillion by 2012.
The report 'Indian Entertainment and Media Industry - Sustaining Growth' reveals that the growth of 17 per cent has proved wrong the forecast of a 15 per cent growth in the previous year. In 2007, foreign investments in the E&M sector reached a record high of $ 211 million (approximately Rs 8.5 billion). This was seen as result of the extremely high number of investment deals announced in 2006 and the years before.
The current size of Television industry is Rs 226 billion, which is projected to grow to Rs 600 billion in 2012. The Television industry is transforming with digitalization of distribution networks through increase in DTH subscribers which projected to grow at 44% CAGR over the next five years.
CAS was made mandatory from January 1, 2007, but saw lukewarm response during the year. High growth in advertising revenues and emergence of alternate revenue streams especially SMS is driving the launch of several new channels, especially in the 'general entertainment' genre.
The advertising industry contributed a share of 38% in the overall industry revenues of 2007, up by a percentage from 37% in 2006. The advertising industry itself recorded a growth of 22% over the previous year and thus contributed an estimated Rs 196 billion in 2007 as compared with Rs 161 billion in 2006. In the last four years 2004-2007, the advertising industry recorded a cumulative growth of 20% on an overall basis.
The advertising industry is experiencing a paradigm shift with digital platforms enabling to reach the critical mass. This had resulted in consumers shifting from passive mediums to spending more time on digitally interactive mediums. Internet and mobile are two keys enablers for the same. Internet advertising is estimated at Rs 4.2 billion in 2008 growing at 32% CAGR, expected to touch Rs 11 billion in 2012.
The Print Media industry current size in 2007 is Rs 149 billion, and its projected size in 2012 is Rs 281 billion. New magazine launches in 2007 dominated the print industry in 2007 as a result of favorable FDI policies and manifested growth potential especially in the high-end niche genres. Newspaper publishing was dominated with the increased regional publications
The current size of Filmed Entertainment is Rs 96 billion and is expected to reach Rs 176 billion in 2012. Emergence of various revenue streams beyond traditional box office is changing the face of the Indian filmed entertainment industry such as television, mobile, internet, home video, merchandise, music, re-make rights and several branded entertainment opportunities.
Advent of 'Studio Model' is further de-risking the business. 2007 saw interests by Hollywood studios in India such as Sony Pictures, Viacom and Fox. Entry of players like Moser Baer is changing the Indian model for Home Video from rental to a sell-through, and incumbents are following suit. Talent is becoming 'commoditized', huge rush in 2007 to lock-in talent for a long term period.
With over 150 radio channels have operationalised by 2007 thus increasing the spread of radio, the current size of Radio Industry is Rs 6.2 billion and the projected size in 2012 is Rs 18 billion.
Phase-III plans have been drawn up which recommend additional 560 radio stations in the next five years. Regulator TRAI has recommended to Government for allowing news on radio and increasing the FDI limit amongst other provisions, these recommendations are expected to make radio more favourable with advertisers.
This report will be officially released by Information and Broadcasting Minister Priya Ranjan Dasmunsi at the inauguration of FICCI-FRAMES 2008, the biggest Global Convention in Asia on the Business of Entertainment, in March 25 in Mumbai. Over 2500 Indian and foreign delegates from nearly 20 countries will engage in seminars and networking business sessions and social get-together's in the three-day meet. The annual meet is organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with the entertainment industry and the I and B Ministry.
While the partner country is Switzerland, delegates from 16 other countries besides India have already registered for the mega event. They are Australia, Canada, France, Greece, Germany, Hong Kong, Italy, Malaysia, Pakistan, South Africa, Thailand, the United Arab Emirates, the United Kingdom, United States, Korea, and New Zealand.
The subjects to be discussed include the Changing face of TV news, Resurgence of the language media, Developing animation content, New age technology and emerging production pipelines in animation, Raising capital, Linguistic diversity in Indian cinema, Radio for the masses, Scope of international co-productions, Talent crunch in the industry, Film marketing & distribution, Importance of digital cinema, Animation, IP creation, protection and life cycle, Visual effects, Mobile entertainment, Sports as entertainment, and Revenue streams in multiplexes.
The inaugural session will be addressed by eminent speakers like Swiss Ambassador to India Dominique Dreyer, I&B Ministry Secretary Asha Swarup; Viviane Reding, European Commissioner, Information Society & Media, European Commission;Stewart Beck, Assistant Deputy Minister, Investment, Innovation and Sectors, Foreign Affairs and International Trade, Canada; FICCI Entertainment Committee Chairman Yash Chopra, FICCI Entertainment Committee Co-Chairman and Sony Entertainment CEO Kunal Dasgupta; and Amit Khanna, Chairman, Reliance Entertainment Pvt. Ltd. and Chairman of the FICCI Convergence Committee.
Timmy Kandhari, Executive director and Leader TICE (Technology, Infocomm and Entertainment & Media) Practice in PricewaterhouseCoopers in India, says "Digitalization is the future for most segments and companies have to adopt this revolution with appropriate infrastructure, relevant business models, and technology upgradation along with associated costs. As digitization sets in, it will lead to reduction in costs for content and delivery in the long run, shifting the emphasis on quality content."
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