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Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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Page 1: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

Eco

nom

ic C

ontr

ibut

ion

of th

e In

dian

Mot

ion

Pict

ure

and

Tele

visi

on I

ndus

try

Mar

ch 2

014

Page 2: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-2

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Indu

stry

Par

tner

s

Dis

clai

mer

:T

his

Rep

ort a

nd th

e in

form

atio

n co

ntai

ned

here

in h

as b

een

prep

ared

by

Del

oitte

Tou

ché

Toh

mat

su In

dia

Pvt

. Ltd

(DT

TIP

L) s

olel

y fo

r the

purp

ose

of in

form

atio

n. T

he r

eade

r sh

all n

ot u

se th

is R

epor

t for

any

oth

er p

urpo

se a

nd in

par

ticul

ar s

hall

not u

se th

is R

epor

t in

conn

ectio

n w

ith th

e bu

sine

ss d

ecis

ions

of a

ny th

ird p

arty

and

for a

dvis

emen

t pur

pose

s.T

his

Rep

ort c

onta

ins

anal

yses

that

are

inte

nded

to p

rovi

de h

igh-

leve

l inf

orm

atio

n on

the

subj

ect a

nd a

re n

ot a

n ex

haus

tive

trea

tmen

t of t

he

subj

ect.

The

ana

lyse

s in

the

Rep

ort a

re li

mite

d by

the

stud

y co

nduc

ted,

the

time

allo

cate

d, in

form

atio

n m

ade

avai

labl

e to

DT

TIP

Lor

col

lect

ed b

y D

TT

IPL.

DT

TIP

L ac

cept

s no

res

pons

ibili

ty o

r lia

bilit

y to

any

par

ty in

res

pect

of t

his

Rep

ort.

Thi

s R

epor

t is

not i

nten

ded

to b

e re

lied

upon

as

a ba

sis

for a

ny d

ecis

ion

and

the

read

er s

houl

d ta

ke d

ecis

ions

onl

y af

ter s

eeki

ng p

rofe

ssio

nal a

dvic

e an

d af

ter c

arry

ing

out t

heir

own

due

dilig

ence

pr

oced

ures

, det

aile

d an

alys

is to

ens

ure

that

they

are

mak

ing

an in

form

ed d

ecis

ion.

Thi

s R

epor

t is

not a

nd s

houl

d no

t be

cons

true

d in

any

way

as

givi

ng a

ny in

vest

men

t adv

ice

or a

ny r

ecom

men

datio

ns b

y D

TT

IPL

to th

e re

ader

or

any

othe

r pa

rty.

The

rea

der

shal

l be

sole

ly r

espo

nsib

le fo

r any

an

d al

l dec

isio

ns (

incl

udin

g th

e im

plic

atio

ns th

ereo

f) m

ade

by th

em o

n th

e ba

sis

of th

is R

epor

t.T

his

Rep

ort h

as b

een

prep

ared

on

the

basi

s of

info

rmat

ion

mad

e av

aila

ble,

obt

aine

d an

d co

llect

ed b

y D

TT

IPL

in a

ssoc

iatio

n w

ith M

otio

nP

ictu

re

Dis

t. A

ssoc

iatio

n (I

ndia

) Pvt

. Ltd

. The

sou

rces

of a

ny m

ater

ial i

nfor

mat

ion

used

in th

e R

epor

t has

bee

n m

entio

ned

or c

ited

here

in. T

he in

form

atio

n ob

tain

ed a

nd c

olle

cted

from

the

vario

us s

ourc

es p

rimar

y an

d se

cond

ary

sour

ces

has

been

use

d on

an

“as-

is”

basi

s w

ithou

t any

inde

pend

ent

verif

icat

ion

by D

TT

IPL.

DT

TIP

L sh

all n

ot b

e re

spon

sibl

e fo

r any

err

or o

r om

issi

ons,

or

for t

he r

esul

ts o

btai

ned

from

the

use

of th

is in

form

atio

n an

d pr

ovid

es n

o as

sura

nce

rega

rdin

g th

e ac

cura

cy, t

imel

ines

s, a

dequ

acy,

com

preh

ensi

vene

ss a

nd/ o

r co

mpl

eten

ess

of s

uch

info

rmat

ion

and

prov

ides

no

war

rant

y of

any

kin

d, e

xpre

ss o

r im

plie

d, in

clud

ing,

but

not

lim

ited

to w

arra

ntie

s of

per

form

ance

and

fitn

ess

for a

par

ticul

ar p

urpo

se. D

TT

IPL

shal

l not

be

liabl

e fo

r any

loss

es a

nd d

amag

es a

risin

g as

a r

esul

t of a

ny in

accu

racy

or

inad

equa

cy o

r in

com

preh

ensi

vene

ss o

r in

com

plet

enes

s of

su

ch in

form

atio

nT

his

repo

rt o

r an

y ex

trac

t fro

m it

may

not

be

copi

ed, p

arap

hras

ed, r

epro

duce

d or

dis

trib

uted

in a

ny m

anne

r or

form

, whe

ther

by

phot

ocop

ying

, el

ectr

onic

ally

, by

inte

rnet

, with

in a

noth

er d

ocum

ent o

r ot

herw

ise

with

out t

he p

rior w

ritte

n pe

rmis

sion

of D

TT

IPL

The

Film

& T

elev

isio

n P

rodu

cers

Gui

ld o

f In

dia

Lim

ited

Film

Fed

erat

ion

of In

dia

Fed

erat

ion

of In

dian

C

ham

bers

of

Com

mer

ce a

nd

Indu

stry

Page 3: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-3

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Glo

ssar

y

Abb

revi

atio

nF

ull N

ame

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revi

atio

nF

ull N

ame

AR

PU

Ave

rage

Rev

enue

Per

Use

rG

EC

Gen

eral

Ent

erta

inm

entC

hann

el

AS

SO

CH

AM

The

Ass

ocia

ted

Cha

mbe

rs o

f Com

mer

ce a

nd

Indu

stry

of I

ndia

HD

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h D

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l Gro

wth

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put

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Con

fede

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dust

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Loc

al C

able

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epre

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cted

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erat

ion

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dian

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f Com

mer

ce

and

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stry

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I T

elec

om R

egul

ator

y A

utho

rity

of In

dia

FT

E

Ful

l Tim

e E

quiv

alen

t T

VT

elev

isio

n

FY

F

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l Yea

r (e

nded

Mar

ch 3

1st )

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Page 4: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-4

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

A n

ote

on u

nits

use

d

�T

his

repo

rt u

ses

the

lakh

/ cr

ore

syst

em, w

hich

is p

reva

lent

in In

dia,

ver

sus

the

mill

ion

/ bill

ion

syst

em

–1

cror

e (c

r.)

= 1

0 m

illio

n

–1

lakh

(or

lac)

= 0

.1 m

illio

n

�A

ll va

lues

in th

is r

epor

t are

in c

rore

s of

Indi

an R

upee

s, u

nles

s ot

herw

ise

spec

ified

�E

mpl

oym

ent n

umbe

rs a

re in

lacs

�M

ost I

ndia

n co

mpa

nies

end

thei

r ye

ar o

n 31

Mar

ch fr

om a

rep

ortin

g pe

rspe

ctiv

e. In

this

rep

ort,

FY

20xx

rep

rese

nts

the

year

end

ed 3

1 M

ar 2

0xx

�A

ll nu

mbe

rs in

this

rep

ort r

efer

to F

Y20

13, u

nles

s ot

herw

ise

spec

ified

�U

S$

1 =

INR

62

has

been

use

d in

this

rep

ort f

or a

ny IN

R to

US

$ co

nver

sion

s

Page 5: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-5

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Con

tent

s

Intr

oduc

tion

6

Exe

cutiv

e S

umm

ary

10

Mot

ion

Pic

ture

/ F

ilm In

dust

ry13

Tel

evis

ion

(TV

) In

dust

ry24

New

Med

ia34

Add

ition

al S

ecto

rs39

App

endi

x46

Page 6: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-6

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Intr

oduc

tion

Page 7: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-7

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Bac

kgro

und

& c

onte

xt

�D

eloi

tte T

ouch

e T

ohm

atsu

Indi

a P

vt L

td (D

TT

IPL)

has

con

duct

ed th

is s

tudy

on

‘Eco

nom

ic c

ontr

ibut

ion

of th

e m

otio

n pi

ctur

e an

d te

levi

sion

indu

stry

in In

dia’

for t

he M

otio

n P

ictu

re A

ssoc

iatio

n (M

PA

)

�In

dia

has

an a

ctiv

e m

otio

n pi

ctur

e an

d te

levi

sion

indu

stry

. Ind

ia is

the

larg

est p

rodu

cer o

f film

s in

the

wor

ld, a

nd h

as a

larg

eC

able

&

Sat

ellit

e (C

&S

) ba

se o

f c. 1

40 m

n ho

mes

�O

ur s

tudy

ass

esse

s th

e co

ntrib

utio

n of

the

mot

ion

pict

ure

and

tele

visi

on in

dust

ry to

the

Indi

an e

cono

my,

and

pro

vide

s es

timat

es

mea

surin

g th

e m

agni

tude

of t

hat c

ontr

ibut

ion

for F

Y20

13

�T

he In

dian

mot

ion

pict

ure

and

tele

visi

on in

dust

ry c

ompr

ises

an

arra

y of

bus

ines

ses

and

serv

ices

. We

have

ana

lyze

d ec

onom

ic

cont

ribut

ion

by k

ey v

alue

cha

in e

lem

ents

, viz

:

�E

cono

mic

impa

ct h

as b

een

estim

ated

in te

rms

of g

ross

out

put,

Tot

al V

alue

Add

ed, a

nd e

mpl

oym

ent g

ener

ated

by

the

indu

stry

. Of

thes

e m

etric

s, T

otal

Val

ue A

dded

(whi

ch in

here

ntly

elim

inat

es a

ny “d

oubl

e co

untin

g”) i

s th

e re

com

men

ded

met

ric to

mea

sure

the

econ

omic

con

trib

utio

n to

the

coun

try.

The

se m

etric

s ar

e di

scus

sed

furt

her o

n th

e fo

llow

ing

page

−T

V p

rodu

ctio

n−

TV

bro

adca

stin

g−

TV

dis

trib

utio

n

−F

ilm p

rodu

ctio

n &

dis

trib

utio

n−

Film

exh

ibiti

on−

Non

-the

atre

reve

nues

*

Not

e: *

Incl

udes

Cab

le a

nd S

atel

lite

(C&

S)

right

s, D

igita

l/onl

ine

right

s, M

usic

and

Hom

e vi

deo

right

s

Page 8: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-8

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Gro

ss o

utpu

t, va

lue

adde

d, a

nd e

mpl

oym

ent g

ener

ated

, are

the

key

met

rics

used

to

asse

ss e

cono

mic

impa

ct

Gro

ss O

utpu

t (G

O)

Gro

ss V

alue

Add

ed

(GV

A)

Tot

al V

alue

Add

ed

(Con

trib

utio

n)E

mpl

oym

ent

�G

ross

Out

put

refle

cts

the

com

bine

d re

venu

e of

al

l film

and

TV

indu

stry

pa

rtic

ipan

ts

�T

his

incl

udes

an

elem

ent

of d

oubl

e co

untin

g of

re

venu

es. I

t is

deriv

ed b

y ad

ding

up

reve

nues

of

play

ers

acro

ss th

e va

lue

chai

n, w

hich

incl

udes

re

venu

es o

f int

erm

edia

te

serv

ices

/ pr

oduc

ts. (

e.g.

In

cas

e of

film

s,

prod

ucer

’s s

hare

of

reve

nue

is r

efle

cted

in

both

pro

duct

ion

&

dist

ribut

ion

reve

nues

, an

d al

so in

exh

ibiti

on

reve

nues

)

�G

ross

out

put i

nclu

des

indi

rect

taxe

s su

ch a

s se

rvic

e ta

x an

d en

tert

ainm

ent t

ax

�G

ross

Val

ue A

dded

repr

esen

ts th

e va

lue

adde

d to

key

fact

ors

of

prod

uctio

n -

capi

tal a

nd

labo

r –

in th

e fo

rm o

f E

BIT

DA

and

Wag

es

resp

ectiv

ely

�E

BIT

DA

or

Gro

ss

Ope

ratin

g S

urpl

us

(GO

S)r

efle

cts

the

tota

l re

turn

s to

cap

ital.

It ca

ptur

es th

e di

rect

taxe

s (i.

e. in

com

e ta

xes

and

corp

orat

e ta

xes)

pai

d by

th

e in

dust

ry

�W

ages

rep

rese

nt th

e re

turn

s to

labo

r, w

hich

in

clud

es p

aym

ents

mad

e to

con

trac

tual

wor

kers

�T

otal

Val

ue A

dded

is

th

e su

m o

f the

Gro

ss

Val

ue A

dded

and

Indi

rect

T

axes

. It r

epre

sent

s th

e to

tal c

ontr

ibut

ion

of th

e fil

m a

nd T

V in

dust

ry to

In

dia’

s G

DP

�N

et In

dire

ct T

axes

(NIT

) in

clud

es s

ervi

ce ta

x,

VA

T, e

nter

tain

men

t tax

, m

unic

ipal

tax,

pro

pert

y ta

x, a

mon

g ot

hers

. For

th

is s

tudy

, we

have

co

nsid

ered

ser

vice

tax

and

ente

rtai

nmen

t tax

, w

hich

are

the

key

form

s of

indi

rect

tax

that

the

Film

and

TV

indu

stry

are

su

bjec

ted

to

�E

mpl

oym

ent

refle

cts

the

num

ber o

f job

s cr

eate

d as

a r

esul

t of f

ilm a

nd T

V

indu

stry

act

ivity

in In

dia

�E

mpl

oym

ent g

ener

ated

ha

s be

en e

stim

ated

for

key

elem

ents

in th

e fil

m

and

TV

indu

stry

val

ue

chai

n vi

z. P

rodu

ctio

n &

D

istr

ibut

ion,

Exh

ibiti

on,

Hom

e V

ideo

, Dig

ital

Rev

enue

s, a

nd D

igita

l D

istr

ibut

ion

for t

he fi

lm

indu

stry

, and

Pro

duct

ion,

B

road

cast

ing,

and

D

istr

ibut

ion

for t

he T

V

indu

stry

Gro

ss O

utpu

t E

BIT

DA

or G

ross

Ope

ratin

g S

urpl

us (G

OS

) + W

ages

Gro

ss V

alue

Add

ed +

Net

In

dire

ct T

axes

Em

ploy

men

t

Page 9: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-9

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Gro

ss O

utpu

t

�T

otal

ope

ratin

g ex

pens

es (o

ther

than

wag

es)

of th

e fil

m a

nd T

V s

ecto

rs h

ave

been

con

side

red

as in

dire

ct g

ross

out

put t

o ot

her s

ecto

rs o

f the

eco

nom

y�

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the

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rect

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ct c

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e in

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ry to

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r ind

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ker

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ases

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rect

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Page 10: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-10

201

4 D

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tte

Tou

che

Toh

mat

su In

dia

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ary

Page 11: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-11

201

4 D

eloi

tte

Tou

che

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)

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Page 12: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-12

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

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V

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D 8

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Page 13: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-13

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Mot

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ure

/ Film

Ind

ustr

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Page 14: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-14

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

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Page 15: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-15

201

4 D

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tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

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Whi

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) H

indi

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rce:

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ourc

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ffice

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, In

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rce:

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ndar

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, 20

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oday

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oth

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, M

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Tim

es

Hin

di, 4

3%

Tam

il, 1

9%

Tel

ugu,

17%

Oth

er

regi

onal

, 15

%

Inte

rnat

iona

l, 6

%

Page 16: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-16

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

indu

stry

is w

itnes

sing

var

ious

cha

nges

: dig

ital

ado

ptio

n ac

ross

the

valu

e ch

ain;

in

tern

atio

nal f

ilms

gain

ing

shar

e, a

nd T

V b

road

cast

ers

look

ing

for

regi

onal

con

tent

�N

early

all

thea

tres

hav

e ad

opte

d di

gita

l pro

ject

ion

and

rece

ive

thei

r con

tent

dig

itally

−T

his

has

enab

led

prod

ucer

s / d

istr

ibut

ors

to h

ave

a la

rger

rel

ease

acr

oss

thea

tres

as

the

cost

s of

phy

sica

l tr

ansp

orta

tion

and

prin

t man

ufac

turin

g is

avo

ided

�M

ost f

ilm p

rodu

cers

hav

e al

so a

dopt

ed d

igita

l cam

eras

dur

ing

prod

uctio

n−

Dig

ital c

amer

as a

re e

stim

ated

to b

e us

ed f

or 8

0-90

% o

f the

reg

iona

l film

s as

wel

l as

90%

of m

ediu

m a

nd s

mal

ler

budg

et H

indi

film

s

Dig

ital

adop

tion

acro

ss th

e va

lue

chai

n

Inte

rnat

iona

l /

fore

ign

film

s ga

inin

g sh

are

Sou

rce:

Ind

ustr

y di

scus

sion

s ; “

Hin

di c

hann

els

dub

to d

ip in

the

sou

ther

n fla

vour

”, Ju

ly 1

9, 2

012,

The

Hin

du B

usin

ess

Line

�T

he in

crea

sed

dubb

ing

of in

tern

atio

nal /

fore

ign

film

s co

uple

d w

ith a

n in

crea

se in

mul

tiple

xes

have

hel

ped

driv

e th

e bo

x of

fice

shar

e of

fore

ign

film

s fr

om ~

5% a

few

yea

rs a

go to

~8%

toda

y−

The

num

ber o

f for

eign

film

s du

bbed

into

Indi

an la

ngua

ges

has

doub

led

over

the

past

5 y

ears

. For

eign

film

s ar

e be

ing

dubb

ed in

to H

indi

, Tam

il an

d T

elug

u w

hich

has

hel

ped

them

reac

h au

dien

ces

beyo

nd ti

er 1

citi

es

−M

ultip

lexe

s tr

aditi

onal

ly h

ad a

pre

senc

e pr

imar

ily in

larg

e m

etro

s. H

owev

er, o

ver t

he p

ast f

ew y

ears

, sm

alle

r tow

ns

like

Gw

alio

r, In

dore

, Bho

pal,

Ujja

in, N

agpu

r, R

aipu

r, J

abal

pur i

n th

e ce

ntra

l reg

ion

and

Asa

nsol

, Mid

napu

r,

Dur

gapu

r, a

nd B

alas

ab in

Wes

t Ben

gal h

ave

witn

esse

d a

sign

ifica

nt ro

llout

of m

ultip

lexe

s

�T

he e

scal

atin

g co

sts

of C

&S

rig

hts

of H

indi

film

s ha

ve le

d na

tiona

l bro

adca

ster

s to

look

for a

ltern

ativ

e so

urce

s of

con

tent

. Whi

le th

e fir

st s

ix m

onth

s of

201

0 sa

w 2

5 te

leca

sts

of d

ubbe

d fil

ms

on H

indi

Gen

eral

E

nter

tain

men

t Cha

nnel

s (G

EC

s), t

he n

umbe

r ros

e to

117

dur

ing

the

sam

e pe

riod

in 2

012

−S

outh

Indi

an fi

lms,

esp

ecia

lly th

ose

in T

amil

and

Tel

ugu,

app

ear

to h

ave

a hi

gh d

ose

of a

ctio

n an

d dr

ama,

cou

pled

w

ith g

ood

prod

uctio

n va

lues

, whi

ch m

akes

them

app

ealin

g to

vie

wer

s ac

ross

the

cou

ntry

−O

n av

erag

e, a

Hin

di fi

lm th

at h

as a

pro

duct

ion

cost

of a

bout

INR

10-

15 C

r. (

US

$ 1.

6-2.

4 m

n) e

xpec

ts a

bout

INR

3-5

C

r.(U

S$

0.5-

0.8

mn)

for i

ts C

&S

rig

hts.

In c

ontr

ast,

Hin

di d

ubbe

d ve

rsio

ns o

f Sou

th In

dian

film

s ar

e av

aila

ble

to

broa

dcas

ters

for

INR

1-2

Cr.

(U

S$

0.16

–0.3

2 m

n)

�T

he a

ppea

l of S

outh

Indi

an fi

lms’

con

tent

, alo

ng w

ith a

vaila

bilit

y at

a r

elat

ivel

y lo

wer

pric

e, h

as le

d to

an

incr

ease

in in

tere

st a

mon

g na

tiona

l bro

adca

ster

s ov

er th

e pa

st 4

-5 y

ears

Nat

iona

l TV

br

oadc

aste

rs

look

ing

for

alte

rnat

ive

/ re

gion

al

cont

ent

Page 17: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-17

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

trad

ition

al b

ox o

ffice

val

ue c

hain

con

sist

s of

pr

oduc

tion,

dis

trib

utio

n an

d ex

hibi

tion,

and

the

dire

ct e

cono

mic

impa

ct o

f eac

h el

emen

t has

bee

n es

timat

ed

Dis

trib

utio

n

�F

ilm p

rodu

ctio

n pe

rtai

ns to

the

proc

ess

of m

akin

g a

film

, whi

le f

ilm d

istr

ibut

ion

is th

e pr

oces

s of

taki

ng th

e fil

m to

mul

tiple

thea

tres

(exh

ibito

rs)

�T

he fi

lm p

rodu

ctio

n an

d di

strib

utio

n el

emen

ts o

f the

mot

ion

pict

ure

valu

e ch

ain

have

bee

n an

alyz

ed to

geth

er s

ince

mos

t lar

ge fi

lm p

rodu

cers

als

o ha

ve

dist

ribut

ion

faci

litie

s

�F

ilms

have

bee

n an

alyz

ed b

y ni

ne s

egm

ents

, res

ultin

g fr

om tw

o ty

pes

of c

uts:

a

cut b

y la

ngua

ge (H

indi

, Tam

il an

d T

elug

u –

whi

ch to

geth

er a

re e

stim

ated

to

repr

esen

t in

exce

ss o

f 70%

of a

ll-In

dia

film

rev

enue

s), a

nd th

en a

cut

by

budg

et (l

arge

, med

ium

and

sm

all)

�E

stim

ates

for t

he re

mai

ning

lang

uage

s ar

e ba

sed

on e

xtra

pola

tion

of th

e ab

ove

thre

e ke

y la

ngua

ges

�F

orei

gn fi

lms

are

typi

cally

rel

ease

d in

Indi

a th

roug

h lo

cal d

istr

ibut

ion

offic

es o

f th

e pa

rent

com

pany

−F

or th

e pu

rpos

e of

this

rep

ort,

it ha

s be

en a

ssum

ed th

at th

e pr

ofits

ear

ned

by th

e lo

cal d

istr

ibut

ion

offic

es a

re r

epat

riate

d ab

road

aft

er p

ayin

g lo

cal s

taff

, and

hen

ce

such

pro

fits

have

bee

n ex

clud

ed fr

om th

e va

lue

adde

d to

the

Indi

an e

cono

my

−W

e ha

ve h

owev

er, i

nclu

ded

the

wag

e re

late

d ex

pens

es

Exh

ibiti

onP

rodu

ctio

n

�E

xhib

ition

reve

nues

take

into

acc

ount

tic

ket s

ales

as

wel

l as

conc

essi

ons,

ad

vert

isin

g an

d ot

hers

str

eam

s

�T

o es

timat

e th

e E

BIT

DA

and

Wag

e co

ntrib

utio

n of

the

thea

tric

al e

xhib

ition

se

ctor

, we

have

con

side

red

sing

le

scre

ens

and

mul

tiple

xes

sepa

rate

ly

�F

orei

gn fi

lms’

con

trib

utio

n to

the

Indi

an

exhi

bitio

n se

ctor

has

als

o be

en

acco

unte

d fo

r

Page 18: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-18

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Ele

men

ts s

uch

as o

nlin

e / d

igita

l agg

rega

tors

and

dig

ital d

istr

ibut

ors

of fi

lms

are

also

pa

rt o

f the

film

indu

stry

val

ue c

hain

, and

thei

r di

rect

impa

ct h

as a

lso

been

est

imat

ed

�A

film

ear

ns a

sig

nific

ant s

hare

of r

even

ue fr

om n

on-t

heat

rical

ave

nues

suc

h as

lice

nsin

g (a

nd/o

r sal

es) o

f C

&S

rig

hts,

inte

rnet

righ

ts, h

ome

vide

o rig

hts

etc.

�A

ggre

gato

rs (e

.g. R

ajsh

ri, S

hem

aroo

etc.

) are

con

duits

bet

wee

n fil

mm

aker

s / d

istr

ibut

ors

and

plat

form

s (e

.g.

iTun

es, Y

ou T

ube

etc.

) w

here

peo

ple

go to

wat

ch o

r bu

y fil

ms

�W

e ha

ve in

clud

ed re

venu

es e

arne

d by

the

aggr

egat

ors

but n

ot b

y th

e th

ird p

arty

pla

tfor

ms

�D

igita

l dis

trib

utio

n re

fers

to d

istr

ibut

ion

of fi

lms

to th

eatr

es v

ia s

atel

lite

�W

e ha

ve e

stim

ated

this

seg

men

t bas

ed o

n in

dust

ry d

iscu

ssio

ns a

nd p

ublic

ly a

vaila

ble

info

rmat

ion

of k

ey

play

ers

such

as

UF

O a

nd R

eal I

mag

e

Dig

ital

dist

ribut

ion

Onl

ine

/ D

igita

l ag

greg

ator

s

Page 19: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-19

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Seg

men

ts

(IN

R C

r.)

AB

CD

(B+C

)E

F(D

+E)

G

Gro

ss O

utpu

t (D

irect

)E

BIT

DA

Wag

esG

ross

Val

ue

Add

ed

(Dire

ct)

Net

Indi

rect

T

axes

Tot

al V

alue

A

dded

(Dire

ct)

Em

ploy

ees

(Dire

ct) i

n la

cs

Pro

duct

ion

&

Dis

trib

utio

n7,

580

(673

)1,

549

876

142

1,01

8 0.

46

Exh

ibiti

on13

,553

1,

364

941

2,30

5 1,

267

3,57

2 1.

35

Hom

e V

ideo

268

59

21

80

-80

0.

00

Onl

ine

aggr

egat

ors

557

279

67

345

-34

5 0.

00

Dig

ital d

istr

ibut

ion

425

208

68

276

-27

6 0.

01

Tot

al22

,384

1,

236

2,64

6 3,

882

1,40

9 5,

291

1.84

Seg

men

ts

(US

$m

n)

AB

CD

(B+C

)E

F(D

+E)

G

Gro

ss O

utpu

t (D

irect

)E

BIT

DA

Wag

esG

ross

Val

ue

Add

ed

(Dire

ct)

Net

Indi

rect

T

axes

Tot

al V

alue

A

dded

(Dire

ct)

Em

ploy

ees

(Dire

ct) i

n ‘0

00s

Pro

duct

ion

&

Dis

trib

utio

n1,

223

(108

)25

0 14

2 23

165

46

Exh

ibiti

on2,

185

219

152

371

205

576

135

Hom

e V

ideo

44

10

3 13

-

13

0

Onl

ine

aggr

egat

ors

90

45

11

56

-56

0

Dig

ital d

istr

ibut

ion

69

34

11

45

-45

1

Tot

al3,

610

200

427

626

227

853

184

Sum

mar

y of

key

dire

ct im

pact

met

rics

for

the

film

ind

ustr

y

The

tabl

e be

low

pro

vide

s a

snap

shot

of t

he In

dian

film

indu

stry

’s to

tal o

utpu

t, E

BIT

DA

, Wag

es a

nd N

et In

dire

ct T

axes

for F

Y20

13

Not

e: T

he a

bove

met

rics

have

bee

n di

scus

sed

in g

reat

er d

etai

l in

subs

eque

nt p

ages

Page 20: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-20

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

�G

ross

Out

put (

Dire

ct):

G

ross

Out

putr

efle

cts

the

com

bine

d re

venu

e of

all

film

indu

stry

par

ticip

ants

. It i

nclu

des

an e

lem

ent o

f do

uble

cou

ntin

g of

reve

nues

. It i

s de

rived

by

addi

ng u

p re

venu

es o

f pla

yers

acr

oss

the

valu

e ch

ain

whi

ch in

clud

es r

even

ues

of

inte

rmed

iate

ser

vice

s / p

rodu

cts.

(e.g

. pro

duce

r’s s

hare

of r

even

ue is

ref

lect

ed in

bot

h pr

oduc

tion

& d

istr

ibut

ion

reve

nues

, and

als

o in

exh

ibiti

on re

venu

es).

It in

clud

es e

nter

tain

men

t tax

es a

nd s

ervi

ce ta

xes.

The

Dire

ct G

ross

Out

put o

f the

film

indu

stry

is e

stim

ated

at

INR

22,

384

Cr.

(U

S$

3,61

0 m

n) w

ith th

e tw

o ke

y se

ctor

s of

pro

duct

ion

and

exhi

bitio

n co

ntrib

utin

g ~

35%

and

~ 5

8% re

spec

tivel

y

�E

BIT

DA

/ G

ross

Ope

ratin

g S

urpl

us (

GO

S):

GO

S re

flect

s th

e to

tal r

etur

ns to

cap

ital.

It al

so c

aptu

res

the

dire

ct ta

xes

(i.e.

inco

me

taxe

s an

d co

rpor

ate

taxe

s) p

aid

by th

e in

dust

ry.T

he fi

lm in

dust

ry’s

GO

S in

FY

2013

was

est

imat

ed a

t IN

R 1

,236

Cr.

(US

$ 20

0 m

n)

−T

he p

rodu

ctio

n se

ctor

can

be

broa

dly

cate

goriz

ed in

to (a

) O

rgan

ized

sec

tor

(com

pris

ing

of la

rge

corp

orat

es/s

tudi

os),

and

(b)

Uno

rgan

ized

se

ctor

(co

mpr

isin

g of

sm

alle

r, in

depe

nden

t pro

duce

rs).

Whi

le th

e or

gani

zed

sect

or is

larg

ely

EB

ITD

A p

ositi

ve, t

he u

norg

aniz

ed, i

ndep

ende

nt

prod

ucer

s ar

e in

curr

ing

loss

es

�W

ages

: W

ages

repr

esen

t the

ret

urns

to la

bor,

whi

ch in

clud

es p

aym

ents

mad

e to

con

trac

tual

wor

kers

.Wag

e pa

ymen

ts in

FY

2013

w

ere

estim

ated

at I

NR

2,6

46 C

r.(U

S$

427

mn)

, with

the

prod

uctio

n se

ctor

con

stitu

ting

~59

% o

f the

tota

l wag

es p

aid,

larg

ely

due

to

the

esca

latin

g fe

es p

aid

to th

e le

ad c

ast i

n fil

ms

�G

ross

Val

ue A

dded

(D

irect

):

GV

Ais

the

valu

e-ad

d cr

eate

d by

labo

r an

d ca

pita

l inp

uts

empl

oyed

dire

ctly

by

the

indu

stry

(i.e

. E

BIT

DA

+ W

ages

). It

was

est

imat

ed a

t IN

R 3

,882

Cr.

(U

S$

626

mn)

in F

Y20

13

The

tabl

e be

low

sum

mar

izes

the

Indi

an fi

lm in

dust

ry’s

Gro

ss O

utpu

t (D

irect

) an

d G

ross

Val

ue A

dded

(Dire

ct)

for F

Y20

13

Seg

men

ts

AB

CD

(B+C

)

Gro

ss O

utpu

t (D

irect

)E

BIT

DA

Wag

esG

ross

Val

ue A

dded

(D

irect

)

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

Pro

duct

ion

&

Dis

trib

utio

n7,

580

1,22

3 (6

73)

(108

)1,

549

250

876

142

Exh

ibiti

on13

,553

2,

185

1,36

4 21

9 94

1 15

2 2,

305

371

Hom

e V

ideo

268

44

59

10

21

3 80

13

Onl

ine

aggr

egat

ors

557

90

279

45

67

11

345

56

Dig

ital d

istr

ibut

ion

425

69

208

34

68

11

276

45

Tot

al22

,384

3,

610

1,23

6 20

0 2,

646

427

3,88

2 62

6

The

dire

ct g

ross

val

ue a

dded

by

the

Indi

an fi

lm in

dus

try

in F

Y20

13 w

as e

stim

ated

at

INR

3,8

82 C

r. (

US

$ 62

6 m

n)

Page 21: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-21

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

�N

et In

dire

ct T

axes

(NIT

):N

IT in

clud

es s

ervi

ce ta

x, V

AT

, ent

erta

inm

ent t

ax, m

unic

ipal

tax,

pro

pert

y ta

x, a

mon

g ot

hers

. For

this

st

udy,

we

have

con

side

red

serv

ice

tax

and

ente

rtai

nmen

t tax

, whi

ch a

re th

e ke

y fo

rms

of in

dire

ct ta

x th

at th

e F

ilm in

dust

ry is

su

bjec

ted

to−

As

per

the

serv

ice

tax

depa

rtm

ent o

f Ind

ia, t

he to

tal s

ervi

ce ta

x re

venu

e in

FY

2013

rela

ted

to th

e tr

ansf

er o

f tem

pora

ry/p

erm

anen

t use

of c

opy

right

in r

espe

ct o

f cin

emat

ogra

phic

film

s an

d so

und

reco

rdin

g w

as e

stim

ated

at I

NR

142

Cr.

(U

S$

23 m

n). W

e ha

ve a

ttrib

uted

this

am

ount

to

“Pro

duct

ion

and

dist

ribut

ion”

, sin

ce a

sig

nific

ant p

ortio

n of

the

abov

e w

ork-

stre

ams

wou

ld f

all u

nder

this

ele

men

t of t

he v

alue

cha

in

−T

he e

stim

ate

of e

nter

tain

men

t tax

of I

NR

1,2

67 C

r. (

US

$ 20

5 m

n), i

s ba

sed

on th

e ov

eral

l bud

gete

d en

tert

ainm

ent t

ax c

olle

ctio

n, a

s pe

r In

dian

P

ublic

Fin

ance

Sta

tistic

s R

epor

t 201

2-20

13. T

he fi

lm e

xhib

ition

seg

men

t is

said

to c

ontr

ibut

e ov

er 8

0% o

f the

ent

erta

inm

ent t

ax c

olle

ctio

n

�T

otal

Val

ue A

dded

(D

irect

):

Thi

sis

the

sum

of t

he G

ross

Val

ue A

dded

and

Net

Indi

rect

Tax

es. I

t rep

rese

nts

the

tota

l dire

ct im

pact

of

the

film

indu

stry

in In

dia

to th

e ec

onom

y, a

nd is

est

imat

ed a

t IN

R 5

,291

Cr.

(U

S$

853

mn)

for F

Y20

13

�E

mpl

oyee

s (D

irect

):T

his

refle

cts

the

num

ber o

f job

s cr

eate

d as

a d

irect

resu

lt of

film

indu

stry

act

ivity

in In

dia.

It is

cal

cula

ted

by

first

seg

men

ting

mov

ies

acco

rdin

g to

thei

r bu

dget

s (s

mal

l/med

ium

/larg

e) a

nd th

en e

stim

atin

g th

e m

an h

ours

nee

ded

base

d on

in

dust

ry d

iscu

ssio

ns. I

t is

estim

ated

that

the

film

indu

stry

in In

dia

dire

ctly

em

ploy

ed a

roun

d 1.

84 la

kh p

erso

ns in

FY

2013

Sou

rce:

Ent

erta

inm

ent

Tax

Dep

artm

ent

of D

elhi

;In

dust

ry d

iscu

ssio

ns

The

tabl

e be

low

sum

mar

izes

the

Tot

al V

alue

Add

ed a

nd N

umbe

r of

per

sons

em

ploy

ed b

y th

e In

dian

film

indu

stry

in F

Y20

13

Seg

men

ts

DE

F (

D+E

)G

Gro

ss V

alue

Add

ed (

Dire

ct)

Net

Indi

rect

Tax

esT

otal

Val

ue A

dded

(Dire

ct)

Em

ploy

ees

(Dire

ct) i

n la

csIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

Pro

duct

ion

&

Dis

trib

utio

n87

6 14

2 14

2 23

1,01

8 16

5 0.

46

Exh

ibiti

on2,

305

371

1,26

7 20

5 3,

572

576

1.35

Hom

e V

ideo

80

13

--

80

13

0.00

Onl

ine

aggr

egat

ors

345

56

--

345

56

0.00

Dig

ital d

istr

ibut

ion

276

45

--

276

45

0.01

Tot

al3,

882

626

1,40

9 22

7 5,

291

853

1.83

The

Indi

an fi

lm in

dust

ry is

est

imat

ed to

hav

e di

rec

tly p

rovi

ded

empl

oym

ent t

o 1.

84

lakh

peo

ple

in F

Y20

13, a

nd a

dded

INR

5,2

91 C

r. (

US

$ 8

53 m

n) o

f val

ue to

the

econ

omy

Page 22: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-22

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

GV

A/ O

utpu

tN

IT/ O

utpu

tG

VA

/ Wor

ker

(in IN

R la

cs)

Mul

tiplie

rs/

Rat

ios

0.47

0.02

1.35

�In

dire

ct g

ross

out

put:

Tot

al o

pera

ting

expe

nses

(oth

er th

an w

ages

) of t

he fi

lm s

ecto

r hav

e be

en c

onsi

dere

d as

indi

rect

gro

ss

outp

ut to

oth

er s

ecto

rs o

f the

eco

nom

y. F

or th

e pu

rpos

e of

indi

rect

impa

ct c

alcu

latio

ns, d

oubl

e co

untin

g fr

om re

venu

e as

wel

l as

cost

cal

cula

tions

has

bee

n el

imin

ated

�In

dire

ct im

pact

on

GV

A a

nd N

IT:

The

Min

istr

y of

Sta

tistic

s an

d P

rogr

amm

e Im

plem

enta

tion

(MO

SP

I) in

Indi

a pr

ovid

es th

e ra

tio o

f G

VA

/Out

put a

nd N

IT/O

utpu

tfor

var

ious

indu

strie

s (I

nput

-Out

put t

rans

actio

ns ta

ble

2007

-08:

Mat

rix 1

). S

ince

the

indi

rect

impa

ct

pert

ains

to im

pact

acr

oss

indu

strie

s, th

e al

l-Ind

ia r

atio

s ac

ross

indu

strie

s ha

ve b

een

appl

ied

to th

e in

dire

ct G

ross

Out

put e

stim

ated

ab

ove.

The

GV

A/O

utpu

t rat

io a

nd N

IT/O

utpu

t rat

io th

at h

ave

been

use

d ar

e 0.

47 a

nd 0

.02

resp

ectiv

ely

�In

dire

ctem

ploy

men

t: T

he N

atio

nal S

ampl

e S

urve

y O

rgan

izat

ion

(NS

SO

) co

nduc

ted

a su

rvey

1of

c. 2

00,0

00 e

nter

pris

es a

cros

s ru

ral a

nd u

rban

Indi

a, a

nd o

ne o

f the

item

s es

timat

ed w

as th

e G

VA

per

wor

ker.

The

GV

A /

wor

ker

for u

rban

Indi

a ac

ross

indu

strie

s ha

s be

en u

sed

in o

ur s

tudy

, sin

ce th

e In

dian

film

and

tele

visi

on in

dust

ry is

prim

arily

bas

ed in

urb

an p

arts

of t

he c

ount

ry. T

his

aver

age

GV

A /

wor

ker

of IN

R 1

.35

lacs

(U

S$

2,16

1) h

as b

een

appl

ied

to th

e in

dire

ct G

VA

in o

rder

to o

btai

n an

est

imat

e of

the

indi

rect

em

ploy

men

t’

1 NS

SO

rep

ort

on ‘S

ervi

ce S

ecto

r in

Indi

a (2

006-

07)

–E

cono

mic

Cha

ract

eris

tics

of E

nter

pris

es’

The

tabl

e be

low

sum

mar

izes

the

mul

tiplie

rs /

ratio

s fo

r ind

irect

impa

ct c

alcu

latio

ns

The

tabl

e be

low

sum

mar

izes

the

tota

l im

pact

of t

he fi

lm in

dust

ry in

FY

2013

Seg

men

tsG

ross

Out

put

Gro

ss V

alue

Add

ed

(GV

A)

Net

Indi

rect

Tax

es(N

IT)

Tot

al V

alue

Add

ed(G

VA

+NIT

)E

mpl

oyee

s in

la

csIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

n

Dire

ct im

pact

22,3

843,

610

3,88

269

21,

409

227

5,29

185

31.

83

Indi

rect

impa

ct11

,696

1,88

65,

518

890

239

395,

757

929

4.08

Tot

al34

,080

5,49

79,

400

1,51

61,

648

266

11,0

481,

782

5.92

Incl

udin

g in

dire

ct im

pact

, the

Indi

an fi

lm in

dust

ry is

est

imat

ed to

hav

e co

ntrib

uted

a

tota

l val

ue a

dd o

f IN

R 1

1,04

8 C

r. (

US

$ 1,

782

mn)

to th

e ec

onom

y

Page 23: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-23

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

Indi

an fi

lm in

dust

ry n

eeds

to c

omba

t an

unde

rde

velo

ped

infr

astr

uctu

re, t

ax-

rela

ted

chal

leng

es, a

nd p

iracy

in b

oth

digi

tal a

nd

phys

ical

form

ats

�W

hile

Indi

a ce

rtifi

ed 1

,602

film

s in

201

2,up

to 9

0% o

f the

m w

ere

not a

ble

to fi

nd e

noug

h th

eatr

es. M

ost

urba

n m

etro

s ha

ve a

dequ

ate

scre

ens,

how

ever

, the

sem

i-urb

an a

nd ru

ral a

reas

lack

the

requ

ired

infr

astr

uctu

re s

uch

as g

ood

loca

tions

like

mal

ls, a

cces

s to

low

-cos

t pow

er e

tc.

Und

er-

deve

lope

d in

fras

truc

ture

Tax

rela

ted

chal

leng

es

�D

iffer

ent s

tate

s le

vy d

iffer

ent e

nter

tain

men

t tax

es b

ased

on

the

film

’s la

ngua

ge. S

ome

indu

stry

par

ticip

ants

su

gges

t a u

nifo

rm e

nter

tain

men

t tax

acr

oss

all s

tate

s to

cre

ate

a le

vel p

layi

ng fi

eld

for f

ilms

acro

ss In

dia.

W

hile

regi

onal

lang

uage

film

s ha

ve ta

x ad

vant

ages

in th

eir

hom

e st

ate,

Hol

lyw

ood

and

Hin

di f

ilms

are

taxe

d he

avily

. For

inst

ance

−In

Mah

aras

htra

, Mar

athi

film

s do

not

pay

any

ent

erta

inm

ent t

axes

whi

le a

ll ot

her l

angu

age

film

s m

ust p

ay it

at t

he

rate

of 4

5% o

f the

tick

et p

rice

−In

Tam

il N

adu,

Tam

il fil

ms

do n

ot p

ay a

ny e

nter

tain

men

t tax

es w

hile

all

othe

r la

ngua

ge fi

lms

mus

t pay

15%

of t

he

ticke

t pric

e

�In

add

ition

to e

nter

tain

men

t tax

es, e

xhib

itors

incu

r ot

her i

ndire

ct ta

xes

such

as

show

tax,

mun

icip

al ta

x,

prop

erty

tax,

ser

vice

on

rent

als

etc.

whi

ch m

akes

the

tax

stru

ctur

e fa

irly

com

plic

ated

�S

ervi

ce ta

x is

levi

ed o

n fil

m d

istr

ibut

ion

and

sale

of r

ight

s, a

nd o

n te

chni

cian

s’ p

ay.I

ndus

try

part

icip

ants

su

gges

t an

exem

ptio

n fr

om s

ervi

ce ta

x as

thes

e ta

xes

ultim

atel

y im

pact

pro

duce

r’s m

argi

ns w

hich

are

al

read

y in

the

red

�T

he la

ck o

f a c

redi

ble

and

cent

ral s

ourc

e fo

r box

off

ice

data

in In

dia

may

cre

ate

chal

leng

es fo

r tax

col

lect

ion

auth

oriti

es

�T

he r

educ

tion

in th

eatr

e-to

-tel

evis

ion

win

dow

of f

ilms

has

redu

ced

the

scop

e fo

r pira

ted

DV

D s

ales

. H

owev

er, p

iracy

stil

l con

tinue

s to

pos

e a

thre

at to

hom

e vi

deo

and

web

-bas

ed re

venu

es. T

he H

indi

film

ho

me

vide

o m

arke

t has

bee

n de

clin

ing

over

the

past

sev

eral

yea

rs la

rgel

y du

e to

the

easy

ava

ilabi

lity

of

pira

ted

DV

Ds

and

VC

Ds

at u

norg

aniz

ed re

tail

outle

ts

−T

o co

mba

t onl

ine

pira

cy, t

he A

nti-V

ideo

Pira

cy C

ell (

AV

PC

) of t

he A

ndhr

a P

rade

sh F

ilm C

ham

ber o

f Com

mer

ce

(AP

FC

C)

has

desi

gned

a fr

ee w

eb a

pplic

atio

n th

at h

elps

use

rs r

epor

t cas

es o

f pira

cy to

the

AV

PC

inst

antly

. The

ap

plic

atio

n is

mul

tilin

gual

and

acc

essi

ble

on m

ultip

le p

latf

orm

s. T

his

initi

ativ

e is

in it

s ea

rly s

tage

s, a

nd it

s im

pact

m

ay b

e fe

lt in

the

shor

t-m

ediu

m te

rm

Pira

cy Sou

rce:

Film

Fed

erat

ion

of In

dia;

Ind

ustr

y di

scus

sion

s

Page 24: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-24

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Tel

evis

ion

Indu

stry

Page 25: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-25

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

Indi

an te

levi

sion

indu

stry

was

est

imat

ed a

t c.

INR

40,

000

Cr.

(U

S$

6,45

1 m

n) in

F

Y20

13, a

nd is

exp

ecte

d to

gro

w a

t a C

AG

R o

f 19%

ov

er th

e pe

riod

FY

2013

–F

Y20

17

�T

he te

levi

sion

indu

stry

der

ives

its

reve

nue

from

su

bscr

iptio

n an

d ad

vert

isin

g

�D

igiti

zatio

n of

cab

le in

Indi

a is

exp

ecte

d to

driv

e ra

pid

grow

th in

sub

scrip

tion

reve

nue,

as

wel

l as

brin

g in

oth

er b

enef

its to

the

indu

stry

−In

dia,

with

reg

ulat

ion

actin

g as

cat

alys

t, is

on

the

jour

ney

to d

igiti

ze it

s co

nsid

erab

le a

nalo

g ca

ble

subs

crib

er b

ase

in fo

ur p

hase

s

−D

igiti

zatio

n is

exp

ecte

d to

brin

g in

tran

spar

ency

and

pl

ough

bac

k of

sub

scrip

tion

reve

nue

into

the

valu

e ch

ain

(ana

log

cabl

e ha

s be

en c

hara

cter

ized

by

unde

r-re

port

ing

by L

ocal

Cab

le O

pera

tors

i.e.

LC

Os)

−D

igiti

zatio

n is

exp

ecte

d to

rai

se A

RP

Us

as

cust

omer

s m

ove

to “

digi

tal l

evel

” AR

PU

s fr

om

“ana

log

leve

l” A

RP

Us

(whi

ch w

ere

ofte

n su

bsid

ized

th

roug

h un

der-

repo

rtin

g)

�S

ubsc

riptio

n re

venu

es a

re s

late

d to

gro

w fa

ster

(C

AG

R 2

1%)

than

ad

reve

nues

(CA

GR

15%

) ov

er

the

perio

d F

Y20

13 to

FY

2017

; with

initi

al y

ears

se

eing

hig

her g

row

th o

win

g to

dig

itiza

tion

Est

imat

ed te

levi

sion

indu

stry

mar

ket s

ize

1(IN

R C

r.)

Key

hig

hlig

hts

39,9

00

47,5

80

57,4

00

68,4

50

79,9

50

Not

e: A

dver

tisem

ent

and

subs

crip

tion

reve

nues

are

net

of

indi

rect

tax

es s

uch

as s

ervi

ce t

ax a

nd e

nter

tain

men

t ta

x

Sou

rce:

Med

ia r

epor

ts,

Indu

stry

dis

cuss

ions

, D

eloi

tte a

naly

sis

21%

15%

CA

GR

25,5

10

31,3

20

38,7

60

47,0

20

55,1

00

14,3

90

16,2

60

18,6

40

21,4

30

24,8

50

FY

2013

(E)

FY

2014

(P)

FY

2015

(P)

FY

2016

(P)

FY

2017

(P)

Sub

scrip

tion

Rev

enue

sA

dver

tisem

ent R

even

ues

Page 26: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-26

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Whi

le H

indi

rem

ains

the

dom

inan

t lan

guag

e in

tele

visi

on, I

ndia

has

a fa

irly

larg

e an

d ac

tive

regi

onal

tele

visi

on m

arke

t

Key

hig

hlig

hts

Adv

ertis

emen

t re

venu

es b

y la

ngua

ge1

(FY

2013

)S

ubsc

riptio

n ba

se b

y te

chno

logy

(F

Y20

13)

49%

12%

10%

7%

7%

5%4%3%

1%2%

Hin

di

Eng

lish

Tam

il

Ben

gali

Tel

ugu

Mal

ayal

am

Kan

nada

Mar

athi

Pun

jabi

Oth

ers

1A

d re

venu

e pi

e do

es n

ot in

clud

e ad

rev

enue

s fr

om S

port

s ch

anne

ls.

Oth

ers

incl

ude

Guj

arat

i, O

diya

and

Bho

jpur

i ad

rev

enue

s

�S

ubsc

riptio

n te

chno

logy

:T

he a

bove

cha

rt p

rovi

des

an e

stim

ate

of In

dia’

s C

&S

sub

scrib

er b

ase

by te

chno

logy

. As

disc

usse

d on

the

prec

edin

g pa

ge, I

ndia

’s a

nalo

g ca

ble

subs

crib

ers

are

in th

e pr

oces

s of

con

vert

ing

to d

igita

l tec

hnol

ogy

�A

d re

venu

es:

Hin

di la

ngua

ge c

hann

els

(GE

Cs,

mov

ies,

new

s an

d ot

her n

iche

gen

res)

con

trib

uted

c. 5

0% to

the

TV

ad

mar

ket i

n F

Y20

13. H

owev

er, i

ndus

try

disc

ussi

ons

sugg

est t

hat r

egio

nal c

hann

els

are

expe

cted

to g

row

at a

fast

er p

ace

than

Hin

di

chan

nels

. Som

e in

dust

ry p

artic

ipan

ts a

lso

belie

ve th

at re

gion

al c

hann

els

may

be

mor

e in

sula

ted

in e

cono

mic

dow

ntur

ns th

an

natio

nal c

hann

els,

as

they

usu

ally

hav

e a

“loca

l” ad

vert

iser

bas

e w

hich

is le

ss im

pact

ed b

y gl

obal

tren

ds /

slow

dow

n

Sou

rce:

Med

ia r

epor

ts,

indu

stry

dis

cuss

ions

, D

eloi

tte a

naly

sis

TV

Ad

reve

nue

FY

2013

: IN

R 1

2,06

9 C

r.

(US

$ 1,

946

mn)

39%

38%

23%

DT

H

Ana

log

Cab

le

Dig

ital C

able

TV

Sub

scrip

tion

base

FY

2013

: 141

mill

ion

Page 27: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-27

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Dig

itiza

tion

of c

able

, alo

ng w

ith c

hang

ing

cons

umer

pre

fere

nces

for

‘type

of c

onte

nt’

and

‘med

ium

of c

onte

nt c

onsu

mpt

ion’

, will

driv

e gr

ow

th g

oing

forw

ard

�T

he G

over

nmen

t’s m

anda

te o

f dig

itizi

ng th

e en

tire

coun

try

in fo

ur p

hase

s is

exp

ecte

d to

ben

efit

cons

umer

s, d

istr

ibut

ors

as w

ell a

s br

oadc

aste

rs−

Con

sum

ers

may

wat

ch a

gre

ater

var

iety

of c

hann

els

in d

igita

l qua

lity

and

have

the

optio

n of

pay

ing

only

fo

r the

ir fa

vour

ite c

hann

els

−W

ith h

ighe

r num

ber o

f rep

orte

d su

bscr

iber

s an

d ris

ing

AR

PU

leve

ls, M

ulti

Sys

tem

Ope

rato

rs (

MS

Os)

are

ex

pect

ed to

reg

iste

r be

tter r

even

ue s

hare

s go

ing

forw

ard

−B

road

cast

ers

stan

d to

gai

n a

high

er s

hare

of s

ubsc

riptio

n re

venu

es a

long

with

car

riage

fees

bei

ng

redu

ced

over

tim

e (li

mite

d ba

ndw

idth

of a

nalo

g ca

ble

led

to a

hig

h ca

rria

ge fe

e)

Dig

itiza

tion

of c

able

New

Med

ia

�W

ith in

crea

sing

num

ber o

f use

rs w

antin

g to

con

sum

e co

nten

t ‘on

the

go’,

natio

nal a

s w

ell a

s re

gion

al b

road

cast

ers

are

crea

ting

a di

gita

l uni

vers

e pa

ralle

l to

the

trad

ition

al T

V w

atch

ing

expe

rienc

e. T

hey

are

incr

easi

ngly

inve

stin

g on

var

ious

dig

ital p

latf

orm

s i.e

. onl

ine

and

mob

ile

port

als/

app

licat

ions

�D

igita

l med

ia c

onsu

mpt

ion

is e

xpec

ted

to b

e hi

gher

with

incr

easi

ng b

road

band

pen

etra

tion

and

fast

er a

cces

s th

roug

h 3G

and

4G

tech

nolo

gies

�C

onte

nt p

refe

renc

es a

re fa

st c

hang

ing,

thus

requ

iring

indu

stry

pla

yers

to m

odify

str

ateg

ies

acco

rdin

gly:

−R

egio

nal c

onte

nt: A

dver

tisin

g by

loca

l as

wel

l as

natio

nal p

laye

rs is

on

the

rise

on r

egio

nal c

hann

els,

thus

en

ablin

g pl

ayer

s to

con

nect

with

thei

r tar

get a

udie

nce

at r

educ

ed c

osts

. Con

sum

er d

eman

d fo

r con

tent

in

loca

l lan

guag

es h

as a

lso

been

incr

easi

ng o

ver t

he p

ast f

ew y

ears

−H

D c

onte

nt: I

ncre

ased

pen

etra

tion

of L

CD

and

LE

D T

Vs,

gro

wth

of d

igiti

zatio

n an

d th

e ne

ed to

di

ffer

entia

te h

as le

d br

oadc

aste

rs to

laun

ch H

D c

hann

els.

The

se w

ill re

sult

in h

ighe

r A

RP

Us

thus

in

crea

sing

rev

enue

s fo

r ope

rato

rs a

nd b

road

cast

ers

alik

e−

Inno

vativ

e co

nten

t: N

on f

ictio

n sh

ows

with

nov

el c

once

pts

have

foun

d tr

actio

n w

ith c

onsu

mer

s w

ho u

ntil

a fe

w y

ears

ago

wer

e ho

oked

to fa

mily

dra

mas

. Alth

ough

fict

ion

will

alw

ays

be th

e m

ains

tay

of In

dian

te

levi

sion

, non

-fic

tions

sho

ws

are

seei

ng g

reat

er a

ccep

tanc

e by

con

sum

ers

Cha

ngin

g co

nten

t pr

efer

ence

s

Sou

rce:

Med

ia r

epor

ts,

New

s ar

ticle

s, i

ndus

try

disc

ussi

ons;

Del

oitte

-FIC

CI

repo

rt o

n ‘T

he D

igita

l M

arch

–M

edia

& E

nter

tain

men

t in

Sou

th I

ndia

’, O

ctob

er 2

013;

‘In

foc

us:

The

GE

C s

egm

ent

in In

dian

TV

–G

ettin

g th

e eq

uatio

n co

rrec

t’, M

arch

201

2, B

ox O

ffice

Ind

ia;

‘Col

ors’

gun

g ho

dig

ital

stra

tegy

’, Ju

ne 2

013,

Ind

iant

elev

isio

n.co

m

Page 28: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-28

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

TV

indu

stry

val

ue c

hain

con

sist

s of

thre

e ke

y e

lem

ents

, and

the

dire

ct e

cono

mic

im

pact

of e

ach

elem

ent h

as b

een

estim

ated

�C

onte

nt re

venu

es fo

r pr

oduc

ers

have

bee

n es

timat

ed

on th

e ba

sis

of c

onte

nt c

osts

as

% o

f ad

reve

nues

for G

EC

s

�T

V c

onte

nt re

venu

es h

ave

been

seg

men

ted

acro

ss H

indi

an

d ot

her r

egio

nal l

angu

ages

�W

ages

in T

V p

rodu

ctio

n in

clud

e sa

larie

s of

cre

w a

s w

ell

as c

ast (

thes

e in

clud

e pe

rman

ent a

s w

ell a

s co

ntra

ctua

l em

ploy

ees)

�E

mpl

oym

ent g

ener

ated

by

prod

ucer

s ha

s be

en e

stim

ated

ba

sed

on in

dust

ry e

stim

ates

of

num

ber o

f em

ploy

ees

requ

ired

per

hour

of o

rigin

al c

onte

nt

prod

uced

Pro

duct

ion

Bro

adca

stin

gD

istr

ibut

ion

�B

road

cast

ing

reve

nues

are

a

sum

mat

ion

of s

ubsc

riptio

n re

venu

es

flow

ing

in fr

om D

TH

and

cab

le

oper

ator

s, a

s w

ell a

s ad

rev

enue

s fo

r T

V c

hann

els

�E

xpor

t ear

ning

s ha

ve b

een

esta

blis

hed

by e

xtra

pola

ting

earn

ings

of t

he la

rges

t pl

ayer

i.e.

Zee

�W

ages

in T

V b

road

cast

ing

incl

ude

sala

ries

of p

erm

anen

t em

ploy

ees

only

�E

mpl

oym

ent g

ener

ated

by

broa

dcas

ters

has

bee

n es

timat

ed

base

d on

ave

rage

reve

nue

per

empl

oyee

ratio

for k

ey in

dust

ry p

laye

rs

�D

istr

ibut

ion

reve

nues

are

seg

men

ted

by

tech

nolo

gy i.

e. D

TH

, C

able

(ca

ble

has

furt

her b

een

split

into

MS

Os

and

LCO

s)

�W

ages

in T

V d

istr

ibut

ion

incl

ude

sala

ries

of p

erm

anen

t (on

-rol

l) em

ploy

ees

of D

TH

pla

yers

and

MS

Os,

as

wel

l as

that

of a

ll pe

ople

em

ploy

ed

by L

CO

s

�E

mpl

oym

ent g

ener

ated

by

DT

H

oper

ator

s ha

s be

en e

stim

ated

bas

ed o

n av

erag

e em

ploy

ees

per m

illio

n su

bscr

iber

s fo

r the

DT

H p

laye

rs

�E

mpl

oym

ent g

ener

ated

by

MS

Os

has

been

est

imat

ed b

ased

on

aver

age

empl

oyee

s pe

r m

illio

n su

bscr

iber

s fo

r th

e ke

y M

SO

s

�E

mpl

oym

ent g

ener

ated

by

LCO

s ha

s be

en e

stim

ated

bas

ed o

n an

ave

rage

nu

mbe

r of e

mpl

oyee

s pe

r LC

O

Page 29: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-29

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Sum

mar

y of

key

dire

ct im

pact

met

rics

for

the

TV

ind

ustr

y

Seg

men

ts

(IN

R C

r.)

AB

CD

(B

+C)

EF

(D

+E)

G

Gro

ss O

utpu

t (D

irect

)E

BIT

DA

Wag

esG

ross

Val

ue

Add

ed (

Dire

ct)

Net

Indi

rect

T

axes

Tot

al V

alue

A

dded

(Dire

ct)

Em

ploy

ees

(Dire

ct) i

n la

cs

Pro

duct

ion

3,87

5 34

0 1,

948

2,28

8 20

0 2,

488

1.46

Bro

adca

stin

g22

,316

3,

718

2,56

8 6,

286

1,20

0 7,

486

0.22

Dis

trib

utio

n31

,393

10

,056

3,

561

13,6

17

4,18

7 17

,804

3.

13

Tot

al57

,584

14

,114

8,

077

22,1

91

5,58

7 27

,777

4.

83

Sou

rce:

Ann

ual

repo

rts

of li

sted

pla

yers

, M

edia

rep

orts

, N

ews

artic

les,

ind

ustr

y di

scus

sion

s, D

eloi

tte a

naly

sis

Not

e: T

he a

bove

met

rics

have

bee

n di

scus

sed

in g

reat

er d

etai

l in

subs

eque

nt p

ages

.

The

tabl

e be

low

pro

vide

s a

snap

shot

of t

he In

dian

TV

indu

stry

’s to

tal o

utpu

t, E

BIT

DA

, Wag

es a

nd N

et In

dire

ct T

axes

for F

Y20

13

Seg

men

ts

(US

$ m

n)

AB

CD

(B

+C)

EF

(D

+E)

G

Gro

ss O

utpu

t (D

irect

)E

BIT

DA

Wag

esG

ross

Val

ue

Add

ed (

Dire

ct)

Net

Indi

rect

T

axes

Tot

al V

alue

A

dded

(Dire

ct)

Em

ploy

ees

(Dire

ct) i

n la

cs

Pro

duct

ion

625

5531

436

932

401

146

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adca

stin

g3,

599

600

414

1,01

419

41,

207

22

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trib

utio

n5,

063

1,62

257

42,

196

675

2,87

231

3

Tot

al9,

288

2,27

61,

303

3,57

990

14,

480

483

Page 30: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-30

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

dire

ct g

ross

val

ue a

dded

by

the

Indi

an T

V in

dus

try

in F

Y20

13 w

as e

stim

ated

at

INR

22,

191

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(U

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9 m

n)

�G

ross

Out

put:

Gro

ss O

utpu

t ref

lect

s th

e co

mbi

ned

reve

nue

of a

ll T

V in

dust

ry p

artic

ipan

ts. I

t has

bee

n de

rived

by

estim

atin

g an

d ad

ding

up

reve

nues

of p

laye

rs a

cros

s th

e va

lue

chai

n w

hich

incl

udes

rev

enue

s of

inte

rmed

iate

ser

vice

s / p

rodu

cts.

(e

.g.B

road

cast

er’s

shar

e of

subs

crip

tion

reve

nues

is r

efle

cted

in b

oth

Bro

adca

stin

g an

d D

istr

ibut

ion

reve

nues

). It

ther

efor

e in

clud

esan

ele

men

t of d

oubl

e co

untin

g of

reve

nues

. The

Gro

ss O

utpu

t of I

NR

57,

584

Cr.

(U

S$

9,28

8 m

n) e

stim

ated

abo

ve a

lso

incl

udes

ser

vice

and

ent

erta

inm

ent t

axes

(tot

al o

f IN

R 5

,587

Cr.

/ U

S$

901

mn)

pai

d by

indu

stry

par

ticip

ants

acr

oss

the

valu

e ch

ain

�E

BIT

DA

/ G

ross

ope

ratin

g su

rplu

s (G

OS

):E

BIT

DA

ref

lect

s th

e to

tal r

etur

ns to

cap

ital e

mpl

oyed

. Thi

s m

etric

als

o ca

ptur

es th

e di

rect

taxe

s (i.

e. in

com

e ta

xes

and

corp

orat

e ta

xes)

pai

d by

the

indu

stry

. EB

ITD

A w

as e

stim

ated

at I

NR

14,

114

Cr.

(U

S$

2,27

6 m

n), w

ith th

e di

strib

utio

n se

gmen

t acc

ount

ing

for o

ver

70%

of t

he in

dust

ry’s

pro

fits,

prim

arily

bec

ause

of L

CO

s’ h

igh

mar

gins

�W

ages

: W

ages

mea

sure

the

retu

rns

to la

bor,

whi

ch in

clud

e pa

ymen

ts m

ade

to c

ontr

actu

al w

orke

rs. W

age

paym

ents

in F

Y20

13

wer

e es

timat

ed a

t IN

R 8

,077

Cr.

(U

S$

1,30

2 m

n)

�G

ross

Val

ue A

dded

: G

VA

is th

e va

lue-

add

crea

ted

by la

bor a

nd c

apita

l inp

uts

empl

oyed

dire

ctly

by

the

indu

stry

(i.e

. EB

ITD

A+

W

ages

).In

FY

2013

, thi

s w

as e

stim

ated

at I

NR

22,

191

Cr.

(U

S$

3,57

9 m

n)

The

tabl

e be

low

sum

mar

izes

the

Indi

an T

V in

dust

ry’s

Gro

ss O

utpu

t (D

irect

) an

d G

ross

Val

ue A

dded

(Dire

ct)

for F

Y20

13

Seg

men

ts

AB

CD

(B+C

)

Gro

ss O

utpu

t (D

irect

)E

BIT

DA

Wag

esG

ross

Val

ue A

dded

(D

irect

)

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

Pro

duct

ion

3,87

562

534

055

1,94

831

42,

288

369

Bro

adca

stin

g22

,316

3,59

93,

718

600

2,56

841

46,

286

1,01

4

Dis

trib

utio

n31

,393

5,06

310

,056

1,62

23,

561

574

13,6

172,

196

Tot

al57

,584

9,28

814

,114

2,27

68,

077

1,30

322

,191

3,57

9

Page 31: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-31

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

Indi

an T

V in

dust

ry is

est

imat

ed to

hav

e di

rect

ly

prov

ided

em

ploy

men

t to

4.82

lakh

pe

ople

in F

Y20

13, a

nd a

dded

INR

27,

777

Cr.

(U

S$

4,4

80 m

n) o

f val

ue to

the

econ

omy

�N

et In

dire

ct T

axes

(NIT

):N

IT in

the

tele

visi

on in

dust

ry in

clud

e se

rvic

e ta

x, V

AT

, and

ent

erta

inm

ent t

ax, a

mon

g ot

hers

. For

the

purp

ose

of th

is s

tudy

, we

have

con

side

red

serv

ice

tax

rela

ting

to T

V p

rodu

ctio

n, b

road

cast

ing

and

dist

ribut

ion,

and

ent

erta

inm

ent

tax

paid

by

DT

H a

nd c

able

ope

rato

rs, w

hich

are

the

key

taxe

s pa

id b

y th

e in

dust

ry1

�T

otal

Val

ue A

dded

: T

his

is th

e su

m o

f the

Gro

ss V

alue

Add

ed a

nd N

et In

dire

ct T

axes

. It r

epre

sent

s th

e to

tal d

irect

impa

ct o

f the

T

V in

dust

ry in

Indi

a to

the

econ

omy,

and

is e

stim

ated

at I

NR

27,

777

Cr.

(U

S$

4,48

0 m

n) fo

r FY

2013

�E

mpl

oyee

s (D

irect

):

Dire

ct e

mpl

oym

ent f

igur

es in

clud

eon

-rol

l as

wel

l as

cont

ract

ual e

mpl

oyee

s of

inde

pend

ent p

rodu

ctio

n ho

uses

. Em

ploy

ees

in T

V b

road

cast

ing

incl

ude

in-h

ouse

pro

duct

ion

staf

f as

wel

l as

non-

prod

uctio

n ro

les

such

as

Sal

es, F

inan

ce,

HR

etc

. for

TV

net

wor

ks. D

istr

ibut

ion

segm

ent c

ontr

ibut

es th

e m

ajor

ity s

hare

of e

mpl

oym

ent g

ener

ated

in th

e T

V in

dust

ry.

Alth

ough

on-

roll

empl

oyee

s fo

r DT

H o

pera

tors

and

MS

Os

wer

e m

uch

less

er c

ompa

red

to L

CO

s, in

dust

ry p

artic

ipan

ts p

eg

excl

usiv

e em

ploy

men

t2ge

nera

ted

by th

ese

play

ers

at a

bout

2 la

c in

FY

2013

Not

e:

1In

dire

ct t

axes

(se

rvic

e ta

x) fo

r pr

oduc

tion

and

broa

dcas

ting

have

bee

n ta

ken

from

Gov

ernm

ent

of In

dia

sour

ces

whi

le i

ndire

ct t

axes

(se

rvic

e as

wel

l as

ente

rtai

nmen

t ta

x)

for

dist

ribut

ors

have

bee

n es

timat

ed b

ased

on

seco

ndar

y re

sear

ch a

nd in

dust

ry d

iscu

ssio

ns2

Exc

lusi

ve e

mpl

oym

ent

impl

ies

empl

oym

ent

gene

rate

d th

roug

h ca

ll ce

nter

s, s

ervi

ces,

fac

tory

line

s an

d di

strib

utio

n co

unte

rs

The

tabl

e be

low

sum

mar

izes

the

Tot

al V

alue

Add

ed a

nd n

umbe

r of p

erso

ns e

mpl

oyed

by

the

Indi

an T

V in

dust

ry in

FY

2013

Seg

men

ts

DE

F (

D+E

)G

Gro

ss V

alue

Add

ed (

Dire

ct)

Net

Indi

rect

Tax

esT

otal

Val

ue A

dded

(Dire

ct)

Em

ploy

ees

(Dire

ct) i

n la

csIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

Pro

duct

ion

2,28

836

920

032

2,48

840

11.

46

Bro

adca

stin

g6,

286

1,01

41,

200

194

7,48

61,

207

0.22

Dis

trib

utio

n13

,617

2,19

64,

187

675

17,8

042,

872

3.13

Tot

al22

,191

3,57

95,

587

901

27,7

774,

480

4.82

Page 32: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-32

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Incl

udin

g in

dire

ct im

pact

, the

Indi

an T

V in

dust

ry i

s es

timat

ed to

hav

e co

ntrib

uted

a

tota

l val

ue a

dd o

f IN

R 3

9,13

9 C

r. (

US

$ 6,

313

mn)

to th

e ec

onom

y

GVA

/Out

put

NIT

/Out

put

GVA

/ W

orke

r (in

INR

lacs

)

Mul

tiplie

rs/ R

atio

s0.

470.

021.

35

�In

dire

ct g

ross

out

put:

Tot

al o

pera

ting

expe

nses

(oth

er th

an w

ages

) of t

he T

V s

ecto

r hav

e be

en c

onsi

dere

d as

indi

rect

gro

ss

outp

ut to

oth

er s

ecto

rs o

f the

eco

nom

y. F

or th

e pu

rpos

e of

indi

rect

impa

ct c

alcu

latio

ns, d

oubl

e co

untin

g fr

om re

venu

e as

wel

l as

cost

cal

cula

tions

has

bee

n el

imin

ated

�In

dire

ct im

pact

on

GV

A a

nd N

IT:

The

Min

istr

y of

Sta

tistic

s an

d P

rogr

amm

e Im

plem

enta

tion

(MO

SP

I) in

Indi

a pr

ovid

es th

e ra

tio o

f G

VA

/Out

put a

nd N

IT/O

utpu

tfor

var

ious

indu

strie

s (I

nput

-Out

put t

rans

actio

ns ta

ble

2007

-08:

Mat

rix 1

). S

ince

the

indi

rect

impa

ct

pert

ains

to im

pact

acr

oss

indu

strie

s, th

e al

l-Ind

ia r

atio

s ac

ross

indu

strie

s ha

ve b

een

appl

ied

to th

e in

dire

ct G

ross

Out

put e

stim

ated

ab

ove.

The

GV

A/ O

utpu

t rat

io a

nd N

IT/O

utpu

t rat

io th

at h

ave

been

use

d ar

e 0.

47 a

nd 0

.02

resp

ectiv

ely

�In

dire

ctem

ploy

men

t: T

he N

atio

nal S

ampl

e S

urve

y O

rgan

izat

ion

(NS

SO

) co

nduc

ted

a su

rvey

1of

c. 2

00,0

00 e

nter

pris

es a

cros

s ru

ral a

nd u

rban

Indi

a, a

nd o

ne o

f the

item

s es

timat

ed w

as th

e G

VA

per

wor

ker.

The

GV

A /w

orke

r for

urb

an In

dia

acro

ss in

dust

ries

has

been

use

d in

our

stu

dy, s

ince

the

Indi

an fi

lm a

nd te

levi

sion

indu

stry

is p

rimar

ily b

ased

in u

rban

par

ts o

f the

cou

ntry

. Thi

s av

erag

e G

VA

/ w

orke

r of

INR

1.3

5 la

cs (

US

$ 2,

161)

has

bee

n ap

plie

d to

the

indi

rect

GV

A in

ord

er to

obt

ain

an e

stim

ate

of th

e in

dire

ct e

mpl

oym

ent

1 NS

SO

rep

ort

on ‘S

ervi

ce S

ecto

r in

Indi

a (2

006-

07)

–E

cono

mic

Cha

ract

eris

tics

of E

nter

pris

es’

The

tabl

e be

low

sum

mar

izes

the

mul

tiplie

rs /

ratio

s fo

r ind

irect

impa

ct c

alcu

latio

ns

The

tabl

e be

low

sum

mar

izes

the

tota

l im

pact

of t

he te

levi

sion

indu

stry

in F

Y20

13

Seg

men

tsG

ross

Out

put

Gro

ss V

alue

Add

ed

(GV

A)

Net

Indi

rect

Tax

es(N

IT)

Tot

al V

alue

Add

ed(G

VA

+NIT

)E

mpl

oyee

s in

la

csIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

nIN

R C

r.U

S$

mn

INR

Cr.

US

$ m

n

Dire

ct im

pact

57,5

849,

288

22,1

913,

579

5,58

790

127

,777

4,48

04.

82

Indi

rect

impa

ct23

,084

3,72

310

,890

1,75

647

176

11,3

621,

833

8.06

Tot

al80

,668

13,0

1133

,081

5,33

66,

058

977

39,1

396,

313

12.8

9

Page 33: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-33

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

Tel

evis

ion

indu

stry

in In

dia

face

s va

rious

cha

lle

nges

Exc

essi

ve

regu

latio

ns/

taxa

tion

in T

V

dist

ribut

ion

�In

dust

ry d

iscu

ssio

ns s

ugge

st th

at w

hile

ST

Bs

have

bee

n se

eded

in c

able

hom

es th

at h

ave

been

co

nver

ted

to d

igita

l, K

YC

for

ms

are

still

in th

e pr

oces

s of

bei

ng c

olle

cted

. Thu

s M

SO

s ar

e st

ill in

the

proc

ess

of c

olle

ctin

g an

d up

datin

g th

e de

tails

of e

nd c

usto

mer

s in

thei

r sy

stem

s

�T

his

has

resu

lted

in th

e be

nefit

s of

dig

itiza

tion

(exc

ept c

arria

ge fe

e re

duct

ion)

not

yet

reac

hing

the

valu

e ch

ain

Dig

itiza

tion

with

ad

dres

sabi

lity

�In

depe

nden

t pro

duct

ion

hous

es a

re in

crea

sing

ly fo

cusi

ng o

n m

aint

aini

ng m

argi

ns a

s op

pose

d to

cr

eatin

g qu

ality

con

tent

�T

his

appe

ars

to b

e a

resu

lt pr

imar

ily o

f fix

ed fe

e ar

rang

emen

ts b

etw

een

prod

ucer

s an

d br

oadc

aste

rs fo

r co

mm

issi

oned

sho

ws

Shi

fting

focu

s of

pr

oduc

tion

hous

es

�T

he T

V d

istr

ibut

ion

segm

ent i

s ex

cess

ivel

y re

gula

ted,

as

wel

l as

very

hig

hly

taxe

d. T

hree

key

issu

es

iden

tifie

d by

indu

stry

par

ticip

ants

are

:

−Li

cens

e fe

e: C

urre

ntly

, DT

H o

pera

tors

are

req

uire

d to

pay

10%

of t

heir

gros

s re

venu

e as

lice

nse

fee

for a

pe

riod

of 1

0 ye

ars.

Alth

ough

TR

AI r

ecom

men

ded

redu

ctio

n of

lice

nse

fee

take

n fr

om D

TH

pla

yers

from

10%

to

6% in

200

8, is

sues

reg

ardi

ng li

cens

e fe

e ar

e su

b-ju

dice

and

stil

l pen

ding

in th

e S

upre

me

Cou

rt

−M

ultip

le ta

xatio

n: M

ultip

le ta

xes

such

as

serv

ice

tax,

ann

ual l

icen

se fe

e (c

entr

al le

vies

), e

nter

tain

men

t tax

(sta

te

levy

) are

pai

d by

DT

H a

s w

ell a

s ca

ble

oper

ator

s. T

he r

ates

of l

evie

s su

ch a

s en

tert

ainm

ent t

ax a

re n

ot u

nifo

rm

and

vary

from

sta

te to

sta

te. T

he in

dust

ry h

as b

een

requ

estin

g fo

r a m

ore

unifi

ed ta

x re

gim

e

−Im

port

dut

y on

ST

Bs:

With

man

ufac

turin

g ca

pabi

lity

of q

ualit

y S

TB

s in

Indi

a be

ing

low

, ope

rato

rs a

re r

equi

red

to

impo

rt S

TB

s. T

hese

impo

rted

ST

Bs

are

subs

idiz

ed in

ord

er to

com

pete

with

ana

log

cabl

e. In

add

ition

, im

port

du

ties

rose

fro

m 5

% to

10%

in th

e U

nion

Bud

get F

Y20

14

�D

TH

ope

rato

rs a

re p

ayin

g ar

ound

33%

of t

heir

topl

ine

as ta

xes.

Hig

h ta

xatio

n le

vels

, alo

ng w

ith

incr

easi

ng tr

ansp

onde

r cos

ts, a

re a

ffec

ting

the

indu

stry

Sou

rce:

Med

ia r

epor

ts,

New

s ar

ticle

s, i

ndus

try

disc

ussi

ons;

DT

H O

pera

tors

Ass

ocia

tion

of In

dia’

s re

spon

se o

n th

e co

nsul

tatio

npa

per

–9/

2013

–on

issu

e/ e

xten

sion

of

DT

H li

cens

e

Page 34: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-34

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

New

Med

ia

Page 35: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-35

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

1516

1921

2335

53

79

120

180

FY

2012

FY

2013

(E)

FY

2014

(P)

FY

2015

(P)

FY

2016

(P)

Bro

adba

nd u

sers

3G u

sers

3359

104

139

165

3

6

8

12

18

FY

2012

FY

2013

(E)

FY

2014

(P)

FY

2015

(P)

FY

2016

(P)

Sm

artp

hone

Use

rsT

able

t use

rs

Gre

ater

dev

ice

(sm

artp

hone

, tab

let)

and

pip

e (b

road

band

, 3G

, 4G

) av

aila

bilit

y is

ex

pect

ed to

ena

ble

rapi

d ad

optio

n of

dig

ital c

onsu

mpt

ion

of c

onte

nt

Sm

art d

evic

es g

row

th tr

end

in In

dia

Bro

adba

nd &

3G

use

r ba

se in

Indi

a (M

N)

�In

dia’

s in

tern

et u

ser

base

(~16

5 M

N, a

s of

Mar

ch 2

013)

is

the

third

larg

est i

n th

e w

orld

aft

er C

hina

and

U.S

.A

�A

larg

e m

ajor

ity (

~87

%) o

f the

se u

sers

acc

ess

inte

rnet

th

roug

h th

eir m

obile

dev

ices

�3G

ser

vice

s ar

e be

ing

aggr

essi

vely

pus

hed

by b

undl

ing

smar

tpho

nes

/ don

gles

with

low

cos

t dat

a pl

ans

–O

pera

tors

sla

shed

3G

tarif

fs b

y ~

70%

ove

r 201

2-13

�B

y th

e en

d of

201

4, 4

G (L

TE

–Lo

ng T

erm

Evo

lutio

n) is

ex

pect

ed to

be

rolle

d ou

t acr

oss

Indi

a, w

hich

cou

ld

acce

lera

te b

road

band

pen

etra

tion

in th

e co

untr

y

�S

ale

of s

mar

t dev

ices

(sm

artp

hone

s an

d ta

blet

s) is

exp

ecte

d to

incr

ease

sig

nific

antly

in th

e ne

ar fu

ture

, driv

en b

y fa

ctor

s su

ch a

s:

–U

pgra

de b

y ex

istin

g us

ers

–D

eclin

ing

devi

ce a

nd m

obile

dat

a co

sts

–A

vaila

bilit

y of

sm

art d

evic

es a

t low

er p

rice

poin

ts

–A

vaila

bilit

y of

wid

e ra

nge

of a

pplic

atio

ns a

nd fe

atur

es

Key

hig

hlig

hts

Sou

rce:

Ana

lysy

s M

ason

, B

udde

com

m,

Gar

tner

, IA

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Page 37: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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Page 38: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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Page 39: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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Page 40: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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Page 41: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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Page 42: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

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mitt

ed it

s re

com

men

datio

n al

ong

with

a

mod

el b

ill to

repl

ace

the

exis

ting

‘Cin

emat

ogra

ph A

ct 1

952,

’ in

orde

r to

upda

te th

e la

ws

rela

ting

to

film

cer

tific

atio

n an

d ex

hibi

tion

Page 43: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-43

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

VF

X u

sage

in In

dia

is e

xpec

ted

to r

ise,

driv

en b

y F

X-h

eavy

sho

ts in

bot

h fil

ms

and

tele

visi

on

VF

X, A

nim

atio

n &

Pos

t pro

duct

ion

Indu

stry

driv

ers:

�In

dia

is n

ow g

radu

ally

em

ergi

ng a

s a

glob

al h

ub fo

r ani

mat

ion

and

visu

al

effe

cts,

with

for

eign

exp

erts

wor

king

in In

dian

pos

t pro

duct

ion

com

pani

es in

ci

ties

such

as

Mum

bai,

Che

nnai

, Ban

galo

re a

nd H

yder

abad

�T

he k

ey d

river

s fo

r VF

X a

nd a

nim

atio

n ar

e gr

owth

in th

e gl

obal

ani

mat

ion

indu

stry

, and

incr

ease

in w

ork

bein

g ou

tsou

rced

to In

dian

firm

s

Sou

rce:

Ind

ustr

y di

scus

sion

s, ‘

“Is In

dian

VF

X o

n pa

r w

ith H

olly

woo

d?”,

The

Tim

es o

f Ind

ia,

Nov

embe

r 26

,201

2; I

ndus

try

disc

ussi

ons;

“H

olly

woo

d co

mes

a c

allin

g fo

r an

imat

ion,

vis

ual e

ffect

s”,

The

Hin

du B

usin

ess

Line

, Ja

nuar

y 11

, 20

12

Mar

ket O

verv

iew

:�

Bus

ines

s op

port

uniti

es fo

r VF

X, a

nim

atio

n &

pos

t pro

duct

ion

wor

k ar

e in

TV

bro

adca

st (m

ainl

y C

hild

ren’

s te

levi

sion

gen

re),

ad

vert

isin

g, m

ovie

s (v

isua

l eff

ects

)and

cor

pora

te p

re-v

isua

lizat

ion

tren

ds

�W

ithin

TV

bro

adca

st, t

here

are

incr

easi

ng in

stan

ces

of V

FX

usa

ge in

sho

ws

(e.g

. ’24

’)

�C

urre

ntly

~10

-15%

of a

n In

dian

film

's b

udge

t is

bein

g al

loca

ted

for v

isua

l eff

ects

, whi

ch is

like

ly to

rise

to 3

0-35

% in

the

shor

t-m

ediu

m te

rm. T

he n

umbe

r of V

FX

sho

ts in

Indi

an fi

lms

has

also

ris

en fr

om lo

w h

undr

eds

to ~

1,70

0 in

big

bud

get f

ilms

�T

here

are

10-

12 la

rge

play

ers

and

~40

0 sm

all p

laye

rs in

the

anim

atio

n &

VF

X in

dust

ry in

Indi

a

�T

he In

dian

mar

ket o

ffer

s sm

alle

r re

venu

es a

nd m

argi

ns fo

r VF

X p

laye

rs in

com

paris

on w

ith d

evel

oped

ove

rsea

s m

arke

ts. F

or

larg

e pl

ayer

s, th

e sh

are

of o

vers

eas

mar

kets

in to

tal r

even

ue m

ay b

e as

hig

h as

80-

90%

�Li

fe O

f Pi

�S

kyfa

ll

�M

adag

asca

r 3: E

urop

e's

Mos

t Wan

ted

�A

vata

r

�T

wili

ght:

New

Moo

n

�T

he L

ord

Of T

he R

ings

: The

Ret

urn

Of

The

Kin

g

Sam

ple

Hol

lyw

ood

film

s w

ith

invo

lvem

ent

of In

dian

VF

X p

laye

rs

Page 44: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-44

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

L&

M in

dust

ry in

Indi

a is

stil

l in

its in

fanc

y,

but o

ffers

str

ong

grow

th p

oten

tial.

Film

an

d T

V c

onte

nt fo

rm th

e ra

w m

ater

ial f

or a

larg

e po

rtio

n of

mer

chan

dise

Lice

nsin

g an

d M

erch

andi

sing

Mar

ket O

verv

iew

:�

The

top

125

glob

al li

cens

ors

acco

unt f

or s

ales

of m

ore

than

US

$ 18

4 bn

. Som

e ke

y gl

obal

lice

nsor

s ar

e D

isne

y, M

ajor

Bas

ebal

l Le

ague

, and

film

fran

chis

es s

uch

as S

tar W

ars

and

Har

ry P

otte

r and

Car

s

�W

hile

the

indu

stry

is s

till i

n its

infa

ncy

in In

dia,

indu

stry

par

ticip

ants

bel

ieve

that

it o

ffer

s st

rong

gro

wth

pot

entia

l in

the

shor

t-m

ediu

m

term

. Mer

chan

dise

cou

ld b

e ba

sed

on s

ever

al s

ourc

es o

f “ra

w m

ater

ial”,

of w

hich

film

and

TV

con

tent

is a

key

sou

rce

Sou

rce:

“In

Foc

us:

Lice

nsin

g &

Mer

chan

disi

ng”,

Box

Offi

ce I

ndia

Mag

azin

e, J

une

9, 2

012

TV

and

film

-ba

sed

licen

sed

mer

chan

dise

�T

his

cate

gory

was

est

imat

ed a

t ~U

S$

125

mn

in 2

011,

and

the

seg

men

t is

expe

cted

to

grow

sig

nific

antly

in th

e sh

ort-

med

ium

term

�G

row

th in

the

kids

genr

e on

TV

has

als

o co

ntrib

uted

to th

at o

f the

L&

M s

egm

ent i

n In

dia

�M

ajor

pla

yers

off

erin

g ch

arac

ter

licen

sing

incl

ude

Dis

ney,

Nic

kelo

deon

, C

arto

on N

etw

ork

Spo

rts

–ba

sed

licen

sed

mer

chan

dise

�T

his

cate

gory

witn

esse

d st

rong

sal

es d

ue to

a lo

yal f

an fo

llow

ing

for

the

popu

lar

spor

ts le

ague

s su

ch a

s th

e In

dian

P

rem

ier

Leag

ue (

IPL)

and

the

Wor

ld S

erie

s H

ocke

y (W

SH

). F

orm

ula

One

and

The

Man

ches

ter

Uni

ted

foot

ball

club

al

so h

ave

a fa

n fo

llow

ing

in In

dia

�Le

adin

g sp

orts

pla

yers

are

lice

nsin

g th

e us

e of

thei

r na

me.

For

inst

ance

, Har

bhaj

an S

ingh

sol

d lic

ensi

ng r

ight

s to

hi

s na

me

to D

elhi

-bas

ed L

icen

se I

ndia

Com

ic b

ooks

-ba

sed

licen

sed

mer

chan

dise

�In

dian

com

ic b

ook

publ

ishe

rs h

ave

not a

ggre

ssiv

ely

mar

kete

d th

emse

lves

and

hen

ce r

even

ue e

arne

d fr

om

mer

chan

dise

is n

otm

ater

ial.

How

ever

, the

re m

ay b

e an

opp

ortu

nity

to

sell

mer

chan

dise

fea

turin

g po

pula

rch

arac

ters

suc

h as

‘Cha

cha

Cha

udha

ry’

Indu

stry

driv

ers:

�T

here

is a

ris

e in

pro

duct

loya

ltyan

d aw

aren

ess

of m

erch

andi

sed

prod

ucts

�T

he g

row

th o

f the

L&

M in

dust

ry in

Indi

a is

clo

sely

link

ed w

ith th

at o

f org

aniz

ed re

tail

in th

e co

untr

y. L

icen

sors

pre

fer t

o de

al w

ith

larg

e or

gani

zed

play

ers.

Tod

ay, l

arge

ret

ail c

hain

s su

ch a

s S

hopp

ers

Sto

p, P

anta

loon

s, W

ests

ide,

Lill

iput

, Life

styl

e an

d S

penc

er’s

se

ll br

ande

d an

d lic

ense

d m

erch

andi

se

�In

dia

has

witn

esse

d a

sign

ifica

nt ri

se in

dis

cret

iona

ry in

com

e, a

nd a

ssoc

iate

d sp

end

�T

here

is g

reat

er a

vaila

bilit

y on

the

supp

ly s

ide,

with

the

arriv

al o

f var

ious

inte

rnat

iona

l bra

nds

may

driv

e th

e se

ctor

Page 45: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-45

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

The

mus

ic in

dust

ry in

Indi

a is

dep

ende

nt p

rimar

ily

on th

e fil

m in

dust

ry,

with

aro

und

80%

of m

usic

sal

es in

Indi

a at

trib

utab

le to

“fil

m m

usic

Phy

sic

al/C

D26

%

Dig

ital/

Onl

ine

52%

Lice

nsi

ng 11%

Oth

ers

11%

920

1,67

0

FY

2013

(E )

FY

2017

(P)

Hin

di,

60%

Reg

iona

l, 2

0%

Inte

rnat

ion

al,

10%

Oth

ers,

10

%

Rev

enue

s by

gen

re in

FY

2013

Rev

enue

s in

Indi

a (IN

R C

r.)

Rev

enue

s by

seg

men

t in

FY

2013

Sou

rce:

IM

I es

timat

es,

indu

stry

dis

cuss

ions

and

ana

lysi

sS

ourc

e: I

ndus

try

disc

ussi

ons

Oth

ers

incl

udes

cla

ssic

al ,

dev

otio

nal,

indi

-pop

, su

fi m

usic

etc

.S

ourc

e: I

ndus

try

disc

ussi

ons

Lice

nsin

g in

clud

es T

V &

Rad

io li

cens

ing

Oth

ers

incl

udes

pub

lic p

erfo

rman

ce r

ight

s et

c.A

bout

the

Indi

an m

usic

indu

stry

Mar

ket O

verv

iew

:

�T

he In

dian

mus

ic in

dust

ry w

as e

stim

ated

at I

NR

920

Cr

(US

$ 15

0 m

n) in

FY

2013

, and

is p

roje

cted

to g

row

at a

CA

GR

of 1

6%

until

FY

2017

�M

usic

rev

enue

s ca

n ac

coun

t for

upt

o 10

% o

f a p

rodu

cer’s

reve

nues

for s

ome

film

s

�C

urre

ntly

, dig

ital r

even

ues

acco

unt f

or o

ver

half

of th

e to

tal m

usic

rev

enue

s

�G

oing

forw

ard,

the

digi

tal a

nd li

cens

ing

cate

gorie

s ar

e ex

pect

ed to

driv

e gr

owth

Cha

lleng

es:

�W

hile

pira

cy w

as a

pro

blem

eve

n in

the

days

of a

udio

cas

sette

s, th

e ch

alle

nge

is g

reat

er w

ith d

igita

l mus

ic, w

hich

is e

asily

tr

ansf

erre

d

�T

RA

I’s d

irect

ive

to s

ervi

ce p

rovi

ders

for o

btai

ning

mul

tiple

con

firm

atio

ns fr

om c

onsu

mer

s fo

r eac

h ac

tivat

ion

and/

or re

new

al o

f va

lue-

adde

d se

rvic

es h

as n

egat

ivel

y im

pact

ed th

e in

dust

ry’s

dig

ital r

even

ues

from

Cal

ler

Rin

g B

ack

Tun

es (

CR

BT

s).

−P

revi

ousl

y, th

e se

rvic

e pr

ovid

er h

ad to

obt

ain

the

conf

irmat

ion

only

onc

e. C

onsu

mer

s do

not

app

ear

to a

ppre

ciat

e ha

ving

to c

onfir

m th

eir

deci

sion

mul

tiple

tim

es

Sou

rce:

Ind

ustr

y di

scus

sion

s

Mus

ic In

dust

ry

Page 46: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-46

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

App

endi

x

Page 47: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-47

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

App

endi

x A

Eco

nom

ic c

ontr

ibut

ion

stud

ies

are

inte

nded

to q

uant

ify m

easu

res

such

as

valu

e ad

ded,

exp

orts

, im

port

s an

d em

ploy

men

t as

soci

ated

with

a g

iven

indu

stry

or

firm

, in

a hi

stor

ical

ref

eren

ce y

ear.

The

eco

nom

ic c

ontr

ibut

ion

is a

mea

sure

of t

he v

alue

ofpr

oduc

tion

by a

firm

or

indu

stry

.

Eco

nom

ic c

ontr

ibut

ion

stud

ies

The

re a

re s

ever

al c

omm

only

use

d m

easu

res

of e

cono

mic

act

ivity

, eac

h of

whi

ch d

escr

ibes

a d

iffer

ent a

spec

t of a

n in

dust

ry’s

ec

onom

ic c

ontr

ibut

ion:

�T

otal

Val

ue A

dded

mea

sure

s th

e va

lue

of o

utpu

t (i.e

. goo

ds a

nd s

ervi

ces)

gen

erat

ed b

y th

e en

tity’

s fa

ctor

s of

pro

duct

ion

(i.e.

la

bor

and

capi

tal)

as m

easu

red

in th

e in

com

e to

thos

e fa

ctor

s of

pro

duct

ion.

The

sum

of v

alue

add

ed a

cros

s al

l ent

ities

in th

e ec

onom

y eq

uals

gro

ss d

omes

tic p

rodu

ct. G

iven

the

rela

tions

hip

to G

DP

, the

val

ue a

dded

mea

sure

can

be

thou

ght o

f as

the

incr

ease

d co

ntrib

utio

n to

wel

fare

.T

otal

Val

ue A

dded

is th

e su

m o

f:−

Gro

ss o

pera

ting

surp

lus

(GO

S).

GO

S re

pres

ents

the

val

ue o

f inc

ome

gene

rate

d by

the

entit

y’s

dire

ct c

apita

l inp

uts,

gen

eral

ly m

easu

red

as th

e ea

rnin

gs b

efor

e in

tere

st, t

ax, d

epre

ciat

ion

and

amor

tizat

ion

(EB

ITD

A)

−T

ax o

n pr

oduc

tion

less

sub

sidy

pro

vide

d fo

r pro

duct

ion.

Thi

s ge

nera

lly in

clud

es c

ompa

ny ta

xes

and

taxe

s on

em

ploy

men

t. N

ote:

giv

en

the

retu

rns

to c

apita

l bef

ore

tax

(EB

ITD

A) a

re c

alcu

late

d, c

ompa

ny ta

x is

not

incl

uded

or

this

wou

ld d

oubl

e co

unt t

hat t

ax−

Labo

r in

com

e is

a s

ubco

mpo

nent

of v

alue

add

ed. I

t rep

rese

nts

the

valu

e of

out

put g

ener

ated

by

the

entit

y’s

dire

ct la

bor i

nput

s, a

s m

easu

red

by th

e in

com

e to

labo

r.

Tot

al V

alue

Add

ed is

the

mos

t app

ropr

iate

mea

sure

of a

n in

dust

ry’s

/com

pany

’s e

cono

mic

con

trib

utio

n to

gro

ss d

omes

tic p

rodu

ct

(GD

P)

at th

e na

tiona

l lev

el, o

r gr

oss

stat

e pr

oduc

t (G

SP

) at

the

stat

e le

vel.

The

val

ue a

dded

of e

ach

indu

stry

in th

e va

lue

chai

n ca

n be

add

ed w

ithou

t the

risk

of d

oubl

e co

untin

g ac

ross

indu

strie

s ca

used

byin

clud

ing

the

valu

e ad

ded

by o

ther

indu

strie

s ea

rlier

in th

e pr

oduc

tion

chai

n.O

ther

mea

sure

s, s

uch

as to

tal r

even

ue o

r to

tal e

xpor

ts, m

ay b

e ea

sier

to e

stim

ate

than

val

ue a

dded

but

they

‘dou

ble

coun

t’. T

hat

is, t

hey

over

stat

e th

e co

ntrib

utio

n of

a c

ompa

ny to

eco

nom

ic a

ctiv

ity b

ecau

se th

ey in

clud

e, fo

r exa

mpl

e, th

e va

lue

adde

d by

ex

tern

al fi

rms

supp

lyin

g in

puts

or

the

valu

e ad

ded

by o

ther

indu

strie

s.

Tot

al V

alue

Add

ed

Mea

surin

g th

e ec

onom

ic c

ontr

ibut

ion

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-48

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

App

endi

x A

�G

ross

out

put

mea

sure

s th

e to

tal v

alue

of t

he g

oods

and

ser

vice

s su

pplie

d by

the

entit

y. T

his

is a

bro

ader

mea

sure

than

val

ue

adde

d be

caus

e it

is a

n ad

ditio

n to

the

valu

e ad

ded

gene

rate

d by

the

entit

y. It

als

o in

clud

es th

e va

lue

of in

term

edia

te in

puts

used

by

the

entit

y th

at fl

ow fr

om v

alue

add

ed g

ener

ated

by

othe

r ent

ities

.

�E

mpl

oym

ent

is a

fund

amen

tally

diff

eren

t mea

sure

of a

ctiv

ity to

thos

e ab

ove.

It m

easu

res

the

num

ber o

f wor

kers

that

are

em

ploy

ed b

y th

e en

tity,

rath

er th

an th

e va

lue

of th

e w

orke

rs’ o

utpu

t.

The

figu

re b

elow

sho

ws

the

acco

untin

g fr

amew

ork

used

to e

valu

ate

econ

omic

act

ivity

, alo

ng w

ith th

e co

mpo

nent

s th

at m

ake

up

gros

s ou

tput

. Gro

ss o

utpu

t is

the

sum

of v

alue

add

ed a

nd th

e va

lue

of in

term

edia

te in

puts

. Val

ue a

dded

can

be

calc

ulat

ed d

irect

ly b

y su

mm

ing

the

paym

ents

to th

e pr

imar

y fa

ctor

s of

pro

duct

ion,

labo

r (i.

e. s

alar

ies)

and

cap

ital (

i.e. g

ross

ope

ratin

g su

rplu

s, ‘G

OS

’, or

pr

ofit)

, as

wel

l as

prod

uctio

n ta

xes

less

sub

sidi

es. T

he v

alue

of i

nter

med

iate

inpu

ts c

an a

lso

be c

alcu

late

d di

rect

ly b

y su

mm

ing

up

expe

nses

rela

ted

to n

on-p

rimar

y fa

ctor

inpu

ts. Inte

rmed

iate

inpu

ts (s

ourc

ed fr

om

othe

r ind

ustr

ies)

Labo

r

Gro

ss o

pera

ting

surp

lus

Pro

duct

ion

taxe

s le

ss s

ubsi

dies

Tota

l Val

ue A

dded

(o

utpu

t les

s in

term

edia

te in

puts

)

Out

put (

tota

l re

venu

e)

Page 49: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-49

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

App

endi

x A

The

dire

ct e

cono

mic

con

trib

utio

n is

a r

epre

sent

atio

n of

the

flow

from

labo

r an

d ca

pita

l in

the

Indi

an fi

lm a

nd te

levi

sion

indu

stry

.T

he in

dire

ct c

ontr

ibut

ion

is a

mea

sure

of t

he d

eman

d fo

r goo

ds a

nd s

ervi

ces

prod

uced

in o

ther

sec

tors

as

a re

sult

of d

eman

d ge

nera

ted

by th

e In

dian

film

and

tele

visi

on in

dust

ry. E

stim

atio

n of

the

indi

rect

eco

nom

ic c

ontr

ibut

ion

is u

nder

take

n us

ing

Min

istr

y of

S

tatis

tics

and

Pro

gram

me

Impl

emen

tatio

n (M

OS

PI’s

) ‘In

put O

utpu

t Tra

nsac

tions

Tab

le (

2007

-08)

: Mat

rix 1

’ for

Gro

ss V

alue

Add

ed

and

Net

Indi

rect

Tax

es a

s ra

tios

of o

utpu

t, an

d ‘N

atio

nal S

ampl

e S

urve

y O

rgan

izat

ion’

repo

rt o

n ‘S

ervi

ce S

ecto

r in

Indi

a (2

006-

07)

–E

cono

mic

Cha

ract

eris

tics

of E

nter

pris

es’ f

or a

vera

ge G

VA

per

wor

ker

estim

ates

.

The

tota

l eco

nom

ic c

ontr

ibut

ion

to th

e ec

onom

y is

the

sum

of t

he d

irect

and

indi

rect

eco

nom

ic c

ontr

ibut

ions

.

Dire

ct a

nd in

dire

ct c

ontr

ibut

ions

�T

he e

stim

atio

n of

indi

rect

impa

ct b

ased

on

the

abov

e ap

proa

ch is

onl

y a

broa

d ap

prox

imat

ion,

as

indu

stry

spe

cific

mul

tiplie

rs

are

not a

vaila

ble.

Mul

tiplie

rs f

rom

oth

er c

ount

ries

have

not

bee

n co

nsid

ered

, as

the

stru

ctur

e an

d fu

nctio

ning

of t

he In

dian

film

an

d te

levi

sion

indu

stry

is q

uite

uni

que,

as

com

pare

d to

oth

er d

evel

oped

nat

ions

and

hen

ce n

ot c

ompa

rabl

e�

The

eff

ect o

f pira

cy h

as n

ot b

een

cons

ider

ed in

the

scop

e of

this

stu

dy�

The

re m

ay b

e an

add

ition

al im

pact

of i

ndire

ct ta

xes

othe

r tha

n se

rvic

e an

d en

tert

ainm

ent t

ax. H

owev

er, d

ue to

the

abse

nce

of

rele

vant

indu

stry

-wis

e in

form

atio

n, th

is h

as n

ot b

een

cons

ider

ed in

the

anal

ysis

for t

his

segm

ent

�T

he im

pact

of r

even

ue g

ener

ated

from

the

film

mus

ic in

dust

ry h

as b

een

cons

ider

ed a

s a

part

of t

he a

ncill

ary

reve

nues

ear

ned

by

the

film

pro

duce

r. T

he re

mai

ning

par

t of t

he v

alue

cha

in o

f the

Indi

an m

usic

indu

stry

has

not

bee

n co

vere

d in

this

ana

lysi

s�

In a

fund

amen

tal s

ense

, eco

nom

ic c

ontr

ibut

ion

stud

ies

are

sim

ply

hist

oric

al a

ccou

ntin

g ex

erci

ses.

No

‘wha

t-if’

, or

coun

terf

actu

al

infe

renc

es –

such

as

‘wha

t wou

ld h

appe

n to

livi

ng s

tand

ards

if th

e fir

m d

isap

pear

ed?’

–sh

ould

be

draw

n fr

om th

em

Lim

itatio

ns o

f eco

nom

ic c

ontr

ibut

ion

stud

ies

�G

row

th is

mea

sure

d by

CA

GR

; est

imat

es fo

r CA

GR

are

bas

ed o

n a

com

bina

tion

of s

ourc

es, i

nclu

ding

ana

lyst

and

indu

stry

re

port

s, a

nnua

l rep

orts

and

com

pany

repo

rts

/ fili

ngs,

med

ia a

rtic

les,

dis

cuss

ions

with

aro

und

50 in

dust

ry p

artic

ipan

ts, a

nd o

uran

alys

is /

sens

e ch

ecks

�C

AG

R m

easu

res

the

geom

etric

pro

gres

sion

ratio

that

pro

vide

s a

cons

tant

rate

of r

etur

n ov

er th

e tim

e pe

riod

Indu

stry

siz

e an

d gr

owth

Page 50: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-50

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Ack

now

ledg

emen

ts

DT

TIP

L a

nd

MP

DA

are

than

kfu

l to

sev

eral

ind

ivid

ual

s re

pre

sen

tin

g m

ajo

r in

du

stry

ver

tica

ls in

the

Mo

tio

n P

ictu

re a

nd

T

elev

isio

n s

ecto

rs w

ho

gav

e u

s th

eir

per

spec

tive

s o

n e

con

om

ic c

on

trib

uti

on

of t

he

ind

ust

ry a

s w

ell a

s ch

alle

ng

es/ t

ren

ds

bei

ng

ob

serv

ed b

y th

em.

Org

aniz

atio

ns

AP

FC

C-(

incl

udin

g A

nti V

ideo

Pira

cy C

ell)

Fox

Sta

r Stu

dios

Rel

ianc

e E

nter

tain

men

t

AS

SO

CH

AM

Han

sa P

ictu

res

Sa

Re

Ga

Ma

Big

Syn

ergy

Hat

hway

S

hem

aroo

Box

TV

IMC

LS

hrin

gar F

ilms

DE

N n

etw

orks

Indi

aCas

tS

ony

DA

DC

Dis

ney

UT

VIn

dian

Bro

adca

ster

s F

eder

atio

nS

outh

Indi

an F

ilms

Cha

mbe

r of C

omm

erce

Dis

trib

utor

-C

P B

erar

, CI

Indi

an M

otio

n P

ictu

res

Pro

duce

rs

Ass

ocia

tion

Tam

il F

ilm In

dust

ry

Dis

trib

utor

-W

est B

enga

l, B

ihar

Indu

s H

ome

Vid

eoT

ata

Sky

Dis

trib

utor

, Exh

ibito

r & E

x-P

resi

dent

of F

ilm

Fed

erat

ion

of In

dia

INO

XT

elug

u F

ilm In

dust

ry

DQ

Ent

erta

inm

ent

Mar

athi

Film

Pro

duce

r's A

ssoc

iatio

n (M

arat

hi C

hitr

apat

Mah

aman

dal)

UF

O M

ovie

z

Dre

ambo

at E

nter

tain

men

tM

ovie

time

Cin

emas

Via

com

18

Eas

tern

Indi

a F

ilm A

ssoc

iatio

nM

ukta

Art

sV

iaco

m 1

8 M

otio

n P

ictu

res

End

emol

Mul

timed

ia C

ombi

nes,

Dis

trib

utor

–M

umba

iV

ideo

con

D2h

ET

V K

anna

daN

BC

Uni

vers

alW

arne

r Bro

ther

s

FIC

CI

Pla

ytim

e C

reat

ions

Yas

h R

aj F

ilms

Film

& T

V P

rodu

cer's

Gui

ldP

rime

Foc

usY

outu

be

Film

Exp

orte

rs A

ssoc

iatio

nP

VR

Cin

emas

Zee

Ent

erta

inm

ent/

Med

iaP

ro

Film

Fed

erat

ion

of In

dia

Ren

trak

Zen

ga T

V

Page 51: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-51

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Bib

liogr

aphy

Org

aniz

atio

ns

Cen

tral

Boa

rd fo

r Film

Cer

tific

atio

n

Cen

tral

Sta

tistic

sO

ffic

e

Dire

ctor

ate

Gen

eral

of S

ervi

ce T

ax

DT

H O

pera

tors

Ass

ocia

tion

of In

dia

Indi

an M

usic

Indu

stry

Inte

rnet

and

Mob

ile A

ssoc

iatio

n of

Indi

a

Med

ia a

nd E

nter

tain

men

tSki

lls C

ounc

il

Min

istr

y of

Fin

ance

Min

istr

y of

Info

rmat

ion

and

Bro

adca

stin

g

Nat

iona

l Sam

ple

Sur

vey

Off

ice

Tel

ecom

Reg

ulat

ory

Aut

horit

y of

Indi

a

Tel

evis

ion

Aud

ienc

e M

easu

rem

ent

Oth

ers

Ann

ual r

epor

ts o

f lis

ted

play

ers

Med

ia r

epor

ts

New

s ar

ticle

s

Page 52: Economic Contribution of the Indian Motion Picture and ... · Economic Contribution of the Indian Motion Picture and Television Industry March 2014

-52

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Abo

ut th

e M

PD

A, M

PA

and

Del

oitte

MP

DA

: T

he M

otio

n P

ictu

re D

ist.

Ass

ocia

tion

(Ind

ia)

Pvt

. Ltd

. (M

PD

A)

is a

who

lly o

wne

d lo

cal o

ffic

e of

the

Mot

ion

Pic

ture

A

ssoc

iatio

n, a

nd re

pres

ents

the

inte

rest

s of

the

Am

eric

an m

otio

n pi

ctur

e in

dust

ry in

Indi

a. M

PD

A w

orks

clo

sely

with

loca

l ind

ustr

y,

gove

rnm

ent,

law

enf

orce

men

t aut

horit

ies

and

educ

atio

nal i

nstit

utio

ns to

pro

mot

e an

d pr

otec

t the

Indi

an fi

lm a

nd te

levi

sion

indu

stry

. F

or m

ore

info

rmat

ion,

ple

ase

visi

t: w

ww

.mpa

a-in

dia.

org

MP

A:

PR

OM

OT

ING

& P

RO

TE

CT

ING

SC

RE

EN

CO

MM

UN

ITIE

S I

N A

SIA

PA

CIF

IC

The

Mot

ion

Pic

ture

Ass

ocia

tion

(MP

A)

and

the

Mot

ion

Pic

ture

Ass

ocia

tion

Inte

rnat

iona

l (M

PA

-I)

repr

esen

t the

inte

rest

s of

the

six

inte

rnat

iona

l pro

duce

rs a

nd d

istr

ibut

ors

of fi

lmed

ent

erta

inm

ent.

To

do s

o, th

ey p

rom

ote

and

prot

ect t

he in

telle

ctua

l pro

pert

y rig

hts

of

thes

e co

mpa

nies

and

con

duct

pub

lic a

war

enes

s pr

ogra

ms

to h

ighl

ight

to m

ovie

fans

aro

und

the

wor

ld th

e im

port

ance

of c

onte

nt

prot

ectio

n. T

hese

act

iviti

es h

ave

help

ed to

tran

sfor

m e

ntry

mar

kets

ben

efiti

ng fi

lm a

nd te

levi

sion

indu

strie

s in

eac

h co

untr

yin

clud

ing

fore

ign

and

loca

l film

mak

ers

alik

e. T

he o

rgan

izat

ions

act

on

beha

lf of

the

mem

bers

of t

he M

otio

n P

ictu

re A

ssoc

iatio

n of

Am

eric

a,In

c. (

MP

AA

) w

hich

incl

ude;

Par

amou

nt P

ictu

res

Cor

pora

tion;

Son

y P

ictu

res

Ent

erta

inm

ent I

nc.;

Tw

entie

th C

entu

ry F

ox F

ilm

Cor

pora

tion;

Uni

vers

al C

ity S

tudi

os L

LC; W

alt D

isne

y S

tudi

os M

otio

n P

ictu

res;

and

War

ner B

ros.

Ent

erta

inm

ent I

nc. T

he M

PA

and

the

MP

A-I

hav

e w

orld

wid

e op

erat

ions

, whi

ch a

re d

irect

ed fr

om th

eir h

ead

offic

es in

Los

Ang

eles

and

Was

hing

ton,

D.C

. and

ov

erse

en in

the

Asi

a P

acifi

c by

a te

am b

ased

in S

inga

pore

.

Del

oitte

“Del

oitte

” is

the

bran

d un

der w

hich

tens

of t

hous

ands

of d

edic

ated

pro

fess

iona

ls in

inde

pend

ent f

irms

thro

ugho

ut th

e w

orld

co

llabo

rate

to p

rovi

de a

udit,

con

sulti

ng, f

inan

cial

adv

isor

y, ri

sk m

anag

emen

t, ta

x an

d re

late

d se

rvic

es to

sel

ect c

lient

s.

The

se fi

rms

are

mem

bers

of D

eloi

tte T

ouch

e T

ohm

atsu

Lim

ited,

a U

K p

rivat

e co

mpa

ny li

mite

d by

gua

rant

ee (“

DT

TL”

). E

ach

DT

TL

mem

ber f

irm p

rovi

des

serv

ices

in p

artic

ular

geo

grap

hic

area

s an

d is

sub

ject

to th

e la

ws

and

prof

essi

onal

regu

latio

ns o

f the

pa

rtic

ular

cou

ntry

or

coun

trie

s in

whi

ch it

ope

rate

s. E

ach

DT

TL

mem

ber f

irm is

str

uctu

red

in a

ccor

danc

e w

ith n

atio

nal l

aws,

re

gula

tions

, cus

tom

ary

prac

tice,

and

oth

er fa

ctor

s, a

nd m

ay s

ecur

e th

e pr

ovis

ion

of p

rofe

ssio

nal s

ervi

ces

in it

s te

rrito

ry th

roug

h su

bsid

iarie

s, a

ffili

ates

, and

oth

er re

late

d en

titie

s. N

ot e

very

DT

TL

mem

ber f

irm p

rovi

des

all s

ervi

ces,

and

cer

tain

ser

vice

s m

ayno

t be

ava

ilabl

e to

atte

st c

lient

s un

der t

he ru

les

and

regu

latio

ns o

f pub

lic a

ccou

ntin

g. D

TT

L an

d ea

ch D

TT

L m

embe

r firm

are

lega

lly

sepa

rate

and

inde

pend

ent e

ntiti

es, w

hich

can

not o

blig

ate

each

oth

er. D

TT

L an

d ea

ch D

TT

L m

embe

r firm

are

liab

le o

nly

for t

heir

own

acts

and

om

issi

ons,

and

not

thos

e of

eac

h ot

her.

DT

TL

(als

o re

ferr

ed to

as

“Del

oitte

Glo

bal”)

doe

s no

t pro

vide

ser

vice

s to

cl

ient

s.

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-53

201

4 D

eloi

tte

Tou

che

Toh

mat

su In

dia

Pri

vate

Ltd

.

Key

con

tact

s

Mot

ion

Pic

ture

Dis

t. A

ssoc

iatio

n (I

ndia

) P

vt. L

td.

215

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