Entertainment Sector

Submitted by: Shagun Raghav

Entertainment Sector

Distribution of Entertainment industryTelevision Industry

Television IndustryTelevision first came to India in the form of Doordarshan (DD) on Sept 15, 1959India is the worlds third largest TV market with almost 138 million TV households next to China and USAAs of 2012, the country has a collection of free and subscription services over a variety of distribution media, through which there are over 823 channels of which 184 are pay channelsAverage time spent is still low in India

Television Industry(Contd.)Television distribution is projected to garner a share of 62 per cent in the television pie by 2015 (as addressable digitisation is expected to cover the entire country by then)Television advertisement is also expected to witness robust growth; its share in the advertising industry is expected to touch 42.5 per cent by 2015 from 41 per cent in 2010Industry has gone through major technological advances in the recent past, with features such as IPTV, VOD (Video on demand), Mobile TV and DVRs(Digital Video Recorders)

Growth of TV Industry10.6%KPMG Report 201214.9%Growth DriversIncome have been rising at a brisk pace in India and it will continue to do so given the countrys strong economic growth prospects.Rising incomes, with its positive impact on the consumer base, will be the key growth driver for the entertainment industry (across the country).Apart from the impact of rising incomes, widening of the consumer base will also be aided by expansion of the middle class, increasing urbanisation, and changing lifestyles.

Policy support aiding sector growthDigitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help players improve their value chain.FDI limit increased from 49 per cent to 74 per cent for broadcast carriage service providers who upgrade to digital and addressable environments.No restriction on foreign investment for up-linking and down-linking of TV channels other than news and current affairs.TV Value ChainContent CreatorsBroadcastersDistributorsEnd UsersRole In The TV Value ChainKey PlayersContent providers operating independently Content is distributed through audio & video signalsCompanies using various technologies to make tha content availableEnd users get access to the contentUTV, Balaji, Creative Eye LTD, Sri Adhikari BrothersStar, Sony, Colors, Zee, NDTVTata Sky, Big TV, Bharti AirtelConsumerStrengthMajor role in the flow of informationLatest technology is used by the Industry, along with that; it offers wide variety ofsolutions including some very creative onesTheindustryisverysensitivetocustomersneedsanddevelop solutions according to the fastchanging requirements

WeaknessFull depending on power supplyRemote area can not accessDominationof4-5majorplayersisanegativesignthuscreatingsome what monopolized industry

OpportunitiesNew entrantsIncreasing no. of channelsChangeintechnologyandinconsumerwantsandneedsbringsaboutnew opportunities for growth and for different players to catch a larger share of the industry ThreatsThe influx of DVRs (Digital Video Recorders) into the homes of consumers has a negative impact on advertising revenuesWith primetime viewing and movies turning digital, the threat of piracy and illegal downloads is more prevalent, which will hinder the industries growthLack of quality content

FILM INDUSTRY

FILM INDUSTRYThe film industry consists of the technological and commercial institutions of filmmaking: i.e. film production companies, film studios, cinematography, film production, screenwriting, pre-production, post production, film festivals, distribution; and actors, film directors and other film personnel.

HISTORYRaja Harishchandra(1913) was the first silent feature film made in India.It was made by Dadasaheb Phalke.Alam Ara (1931) was the first sound film made by Ardeshir Irani.In the late 1950s,Bollywood released its first color films,however ,the majority of color films continued to be black and white until the mid 1960s.

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

The Telugu film industry produces the largest number of films every year in India, with about 245 films produced in 2006.StrengthBollywood is no more a Made in India brand; Bollywood has become an international brand having its global presence in Asia, Africa, Europe, America and Australia.Bollywood produces more than 1000 films per year and has more than fourteen million viewers who visit theatres daily to watch Bollywood movies all over the world.Bollywood movies compete with Hollywood movies for their slots in theatresThe volume of Bollywood movies released worldwide has become twice the number of Hollywood moviesBollywood gives employment to many lacks of people around the worldLow budget movies have generated more revenues in box office hit

WeaknessWhen referring to Value vs. Volume growth, Bollywood has more volume of movies released every year but very few movies get back their return on investmentsMany movies fail to make even a little impact to the audience as the movie release per month is very highRepetition of story script and duplication of music tracks seldom makes people to lose interest for moviesBollywood movies spoil the rich Indian values and sentiments and inflict wrong culture in younger generations mind by influencing western practises and lifestyleSmall producers cant shell out more money for their movie promotions and advertisements

OpportunitiesViewers for Bollywood movie are increasing every yearSlumdog Millionaire success which bagged more than $80 million revenue added new dimensions to Bollywood moviesInternational brands like LOreal prefer Indian celebrities to be their brand ambassadors for their global market.Reliance Big entertainment has signed deals with production companies of Brad Pitt, George Clooney, Tom Hanks, Nicholas Cage, and Jim Carrey etcThe overall Indian movie market is expected to grow at a rate of 14% YOY.Ficci-KPMG report has mentioned in its report that the revenues from Media and Entertainment (M&E) would reach INR 1.3 Trillion by the year 2015.Marketing in M&E has become very powerful with the help of viral marketing, for instance Why this Kolaveri was a straight away success.

ThreatsGovernment and sensor board regulations are becoming high due to the increase of adulthood and violence scenes in moviesPirated CDs and DVDs impose a major threat for this industryMovies are watched and shared across internetMany movies face legal issues and threats from political parties during their releasesNegative reviews on websites and social media are major threats

Music Industry

IntroMusic of India is one of the oldest unbroken musical traditions in the world.Origins of this system go back to the Vedas (ancient scripts of the Hindus).The industry is considered to be an important constituent of the Indian Entertainment industry as a whole, rather than an independent sub-sector.Intro(contd)Indian Music Industry has a rich musical tradition and is capable of generating sizeable revenue for the country in every genre of the music industry.

Distribution of Music in India

Revenue

Revenue(contd)The year 2010 saw structural shift from physical formats to digital ones.The year 2011 witnessed a wider range of viable options for music consumption through different digital platforms.The Indian music industry registered a growth of 5 per cent in 2011 over 2010, achieving revenues of Rs 9 billion (US$ 158.66 million) in the year.Growth DriverDigital music acting as a key growth driver in India and all over the world.Independent artistes, internet services and new-age publishers are giving the industry a new lease of life.Ringtones and downloading albums from online stores are generating additional fees from mobile subscribers and more licensing revenue for record companies.

Key Players of Music IndustryThe major players in the Indian Music Industry in the film and non-film music categories are:T-seriesTimes MusicHMVTipsSony MusicUniversalVirgin

Threats to Music IndustryMajor Threats are Piracy, Version recordings, disc regulations and Inadequate support from the government.LOSS OF REVENUES TO Film Industry RS 2000 Crores + Per YearMusic Industry RS 600 Crores Annually for the past 3 years

Threats(contd.)Legitimate market has shrunk by 27% in unit terms and 38% in value terms over last 2 years.Internet Piracy also adds up to this problem.There are about 600 sites that allow downloading of music from the net for free.Industry observers estimate the percentage to rise to 25% unless stringentmeasuresaretakenimmediately.

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HISTORY OF RADIO IN INDIA:

Broadcasting began in India with private radio service in Madras in 1924.1957 All India Radio was renamed as Akashvani.From 6 radio stations in 1957 AIRs network expanded to 146 AM stations.Commercial Radio services in India started in 1967 by Vividh Bharati.For more than 4 decades, the Government of India did not permit private radio stations to broadcast.1993, the Government allowed private FM operators to 'buy' blocks on All India Radio1998 the Government decided not to renew contracts of private FM operators. Not surprisingly, the advertising revenue fell by 50% within a year!In 2000, the Government auctioned licenses for private FM channels to boost the revenue.

Growth of the radio industryWith the implementation of Phase III, the radio industry is expected to grow from INR14 bn to INR23 bn in three years.

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