entertainment march 2014
TRANSCRIPT
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Third largest TV market • With 146 million television households in 2011, India stood as the third largest televisionmarket after the U.S. and China
One of the largest
broadcasting market
• India has one of the largest broadcasting industries in the world with approximately 800satellite television channels, 245 FM channels and more than 100 operational communityradio networks
Rising no. ofsubscribers
• The total subscriber base for Indian television industry is expected to increase to 173million by 2016 from 95 million in 2009
Fast growing animationindustry
• The Indian animation industry is expected to expand at a CAGR of 15.8 per cent toUSD1.4 billion by 2017 from USD650 million in 2012
Source : Planning Commission, Aranca Research
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Growing demand
Source: KPMG report 2012, Aranca ResearchNotes: AGV - Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition,
CAGR - Compound Annual Growth Rate, FDI - Foreign Direct Investment, E - Estimate
Robust demand• Rising incomes and evolving
lifestyles have led to higherdemand for aspirational productsand services
• Higher penetration and a rapidlygrowing young population coupled
with increased usage of 3G andportable devices would augmentdemand
Attractive opportunities• Industry is set to expand at a
CAGR of 15.2 per cent over2012 – 17, one of the highest ratesglobally
• Television and AGV segmentsexpected to lead industry growth;opportunities in digitaltechnologies as well
Policy support• Policy sops, increasing FDI limits• Measures such as digitisation of
cable distribution to improveprofitability and ease of institutionalfinance
• Increasing liberalisation and tariffrelaxation
Increasing investments• Higher FDI inflows• Increasing M&A activity
• More big-ticket deals such as WaltDisney- UTV, Sony-ETV and Zee-Star
• Entry of big players across allsegment of industry
2012
MarketSize:
USD15.1billion
2017E
MarketSize:
USD30.5billion
AdvantageIndia
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Source: KPMG Report 2013, Aranca ResearchNote: VFX - Visual Effects
Entertainment
Television
Gaming
Animation& VFX
Out OfHome(OOH)
MusicDigital Advertising
Radio
Films
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Growth of television industry (in 2011)
Source : KPMG Report 2013, Aranca ResearchNote: E - Estimates
With a growth rate of 15.0 per cent in 2012, Indian television industry stood second when compared with BRIC and othermajor developed economies
Currently, the television industry in India derives the major share of its revenue from subscription segment (66.0 per cent)and the rest from advertising (34.0 per cent)
The revenue share from subscription segment is expected to reach 72.0 per cent by 2017, driven by higher penetration ofsubscription television
Television segments
2.1%
3.6%
10.6%
14.4%
15.8%
22.5%
United States
UnitedKingdom
China
Russia
India
Brazil
34.0% 28.0%
66.0% 72.0%
2012 2017E
TV advertising Subscription revenues
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Industry size of emerging segments (USD millions)
Source : KPMG Report 2013, Aranca ResearchNotes: VFX- Visual Effects; F - Forecast,CAGR - Compound Annual Growth Rate
Radio, Animation & VFX, Gaming and Digital advertisingare also emerging as fast growing segments
The total market share in terms of revenue is expected toreach 15.2 per cent by 2017 from 12.6 per cent in 2012
During 2012 – 17, these segments are expected to developat a CAGR of:
Digital advertising (32.6 per cent)
Gaming (22.9 per cent)
Radio (17.1 per cent)
Animation (23.9 per cent)
100
400
700
1000
1300
1600
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3 F
2 0 1 4 F
2 0 1 5 F
2 0 1 6 F
2 0 1 7 F
Radio Animation and VFXGaming Digital Advertising
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Advertising revenue forecast
Source : KPMG Report 2013, Aranca ResearchNotes: OOH - Out Of Home, F - Forecast
Total spending on advertising across all media stood at USD5.9 billion, accounting for 41 per cent of the total industryrevenue in 2012
Advertising revenue is expected to touch USD11.6 billion by 2017 from USD5.9 billion in 2012
Print is the largest contributor, accounting for 46 per cent of the advertising share
Advertising revenue share (2012)
38%
46%
5%
7%4%
TV
OOH
Digital Advertising
Radio
5.05.1
4.95.7 5.5 5.9 6.6
7.5
8.7 10.0
11.6
-10%
-5%
0%
5%
10%
15%
20%
0
2
4
6
8
10
12
14
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3 F
2 0 1 4 F
2 0 1 5 F
2 0 1 6 F
2 0 1 7 F
Total revenue- (USD billion) Growth (%) -RHS
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Source : Company Websites, Business Week, KPMG report 2012 Aranca Research
Note: M&E - Media and Entertainment
Company Business description
Star India Pvt Ltd• Fully owned subsidiary of News Corporation
• Portfolio includes 40 channels in seven languages across various categories such as soaps, reality, news and films
• Also manages a portfolio of business ventures including DTH operator Tata Sky, cable system Hathway, channel
distributor STAR Den, news channel operator MCCS, the film production and distribution business Fox STAR StudiosIndia and STAR CJ Home Shopping
Zee Entertainment Enterprises Ltd• Fully owned subsidiary of Essel Group and first listed media company in India
• One of the largest producers and aggregators of Hindi programming in the world
• An estimated reach of more than 670 million viewers across 169 countries
• Pioneer of television entertainment industry in India; launched Zee TV- the country’s first Hindi satellite channel
• Range of businesses across the value chain in the M&E industry
Multi Screen Media Pvt Ltd• Fully owned subsidiary of Sony Pictures Entertainment
• Comprises of Sony Entertainment Television (SET) and SAB, leading Hindi general entertainment televisionchannels; MAX, a movies and special events channel; and PIX, a channel that airs Hollywood movies
• Its programming spans across various genres including drama, reality, comedy, horror, Bollywood and live events
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Source : Company Websites, Business Week, Aranca Research
Company Business description
Yash Raj Films Studios• The only privately owned film studio in India
• Apart from film production, the company has also expanded into distribution of films and music, home entertainment,production of television software, ad films, documentaries and private label music production
• The company launched a youth films studio Y-Films in 2011 to connect with the large young population of the country
Eros International Media Ltd• Strong distribution network spanning across 50 countries and over 27 dubbed foreign languages
• One of the largest content owners in the industry having a film library of over 2600 films, thus ensuring stable, recurringcash flows
• The company is diversifying into Marathi, Punjabi, Tamil and other regional language films to leverage upon thegrowing demand for regional cinema
Red Chillies Entertainments Pvt Ltd• Founded in 2002 as a film production house, the company has branched into TV shows and advertisement, visual
effects and multi-media production equipment leasing
• It also owns the Kolkata Knight Riders cricket franchise in the Indian Premier League
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Source: Company Websites, Business Week, Aranca Research
Company Business description
Music Bharti• A wholly owned subsidiary of Bharti Airtel
• The largest music company in terms of revenues
• Provides mobile-based value-added music services (VAS) such as hello tunes, call back tunes, music on demand,Mirchi mobile and Airtel radio
Saregama India Ltd• The company owns the largest music archives in India, one of the largest in the world
• It uses the music labels Saregama, RPG Music and HMV
• The company is making efforts to digitise its catalogue to make inroads into the digital music market and counterdeclining physical music sales
Super Cassettes Industries Ltd• The company owns the rights to over 2,000 video and 35,000 audio titles, comprising of nearly 24,000 hours of music
• The company has diversified into film production, consumer electronics and mobile phones manufacture
Tips Industries Ltd• The company owns 3,500 titles of which a minimum of 25 have been sold over a million copies, with another 10
selling over 10 million copies
• Since 1981, Tips has the highest number of gold and platinum discs to their credit in India
• Tips also holds soundtrack copyrights of over 50 Hindi movies and has also ventured into film production
• The company’s distribution channel serves more than 1,000 wholesalers across country
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Television
• Television penetration in India is at about 66 per cent and penetration is expected to reach72 per cent by 2017
• The government announced the digitisation of cable television in India in four phases,which would be completed by the end of 2014
• The direct-to-home (DTH) subscription is growing rapidly driven by content innovation andproduct offerings
• The subscription share to the total revenue is expected to grow to 69 per cent by 2016
• Considering the huge potential in regional print markets, national advertisers are enteringthese markets to increase their advertising share
• Increasing income levels and evolving lifestyles have led to robust growth in nichemagazines segment
• Increasing literacy levels leading to a rise in the readership base
Film
• Growth to be fuelled by multiplex chains, increasing footfalls of consumers and higher
quality content• Increasing share of Hollywood content in the Indian box office• 3D cinema is driving the growth of digital screens in the country• The Indian film industry is largest producer of films globally with 400 production houses
and corporate houses involved in film production
Source : KPMG Report 2012, Economic Times, Aranca ResearchNotes: DTH - Direct to Home, 3D - Three Dimension
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Animation, Gaming andVFX (AGV)
• Growing focus on the ‘kids genre’ and rise in dedicated channels for them• Surge in 3D/HD animated movies in theatres and use of animation and VFX in TV
advertising and gaming• Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian
players
Radio
• Increasing FM enabled radio phones, mobiles and car music systems• During 2010, there were a total of 245 channels operating across India• Government introduced favourable guidelines for expansion of the 3rd phase of FM radio
broadcasting services, which will bring 294 towns and 839 stations under FM coverage• Liberalisation of policy on community radio took place in 2008 which led to 29 community
radio stations getting operational in the country
Music
• The Indian music industry is a consortium of 142 music companies• Players are looking at new ways and mediums to monetise music, such as utilising social
media to promote music• Mobile phones, iPods and mp3 players – devices that enable music on-the-go – are
becoming the primary means to access music• Digital music on mobile continues to drive music industry revenue
Source : KPMG Report 2012, Economic Times, Aranca Research
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Source : Aranca Research
Growing demand
Inviting Resulting in
Growing demand Increasing investmentsPolicy support
Higher realincomes and
changing lifestyles
Falling prices,increasingpenetration
Growing younguser base with high
access totechnology
Policy sops,favourable FDI
climate
Policies to enhancegrowing segmentslike animations and
gaming
Increasingliberalisation,
tariff relaxation
Higher FDI inflows
Increasing M&Aactivity
Increasingparticipation of big
players
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Rising per-capita income in India (USD)
Source: IMF, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate
F - Forecast
Incomes have risen at a brisk pace in India and will continuerising given the country’s strong economic growthprospects. Nominal per capita income is estimated (IMF) tohave recorded a CAGR of 10.2 per cent over 2000 – 12
Rising incomes, with its positive impact on the consumerbase, will be the key growth driver for the entertainmentindustry (across the country)
As the proportion of ‘working age population’ in totalpopulation increases, per capita income and GDP areexpected to grow higher
-5%
0%5%
10%
15%
20%
25%
30%
0
500
1,000
1,500
2,000
2,500
2 0 0 0
2 0 0 1
2 0 0 2
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3 F
2 0 1 4 F
2 0 1 5 F
2 0 1 6 F
2 0 1 7 F
2 0 1 8 F
Per Capita income, USD, LHS Growth
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Indian residents shifting from low-income to high-income groups
Source: McKinsey Quarterly Report, Aranca Research
Apart from the impact of rising incomes, widening of theconsumer base will also be aided by expansion of themiddle class, increasing urbanisation, and changinglifestyles
The entertainment industry will also benefit from continuedrise in the propensity to spend among individuals; empiricalevidence points to the fact that decreasing dependency ratioleads to higher discretionary spending on entertainment
1 3 72 617
1225
2935
40
3250
2615
2008 2020 2030Globals (>18412.8) Strivers (9206.4-18412.8)Seekers (3682.5 - 9206.4) Aspirers (1657-3682.5)Deprived (<1657)
Million Household,100%
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Television
• Digitisation of the cable distribution sector to attract greater institutional funding, improveprofitability and help players improve their value chain
• FDI limit increased from 74 per cent to 100 per cent in cable and DTH satellite platforms in2013
• No restriction on foreign investment for uplinking and downlinking of TV channels otherthan news and current affairs
Film
• Co-production treaties with various countries such as Italy, Brazil, UK and Germany toincrease the export potential of the film industry
• Granted ‘industry’ status in 2001 for easy access to institutional finance• FDI upto 100 per cent through the automatic route has been granted by government• Entertainment tax to be subsumed in the GST; this would create a uniform tax rate regime
across all states and will also reduce the tax burden
Radio
• FDI limit in radio increased to 49 per cent from 26 per cent in 2013• Private operators allowed to own multiple channels in a city, subject to a limit of 40 per
cent of total channels in the city.• Private players allowed to carry news bulletins of All India Radio• Further boost may be given to the radio sector by charging license fees on the basis of
‘net income’ so as to provide relief to loss making radio players
Source : Aranca ResearchNote: FDI - Foreign Direct Investment
GST - Goods and Services Tax
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• FDI/NRI investment of upto 49 per cent in an Indian firm dealing with publication ofnewspaper and periodicals
• FDI/NRI investment of upto 49 per cent in publications of Indian editions of foreignmagazines
• FDI/NRI investment of upto 49 per cent in publications of scientific and technicalmagazines/specialty journals/periodicals
Music
• Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthensthe royalty claims of musicians, lyricists and others in the field
• Policies are adopted against digital piracy and file-sharing; steps have been taken to blockillegal music websites
• Adoption of revenue sharing model by Copyright Board requiring FM radio companies toshare 2 per cent of their net advertising revenues with music companies
Animation, Gaming and
VFX (AGV)
• 100 per cent FDI allowed in the sector through automatic route provided it is in compliancewith Reserve Bank of India guidelines
• The government has carved out a National Film Policy to tap the potential of the filmsector mainly for the animation segment
Source : PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research
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Source : Digital Dawn, KPMG Report 2013, Aranca Research
In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ fordigitisation of cable television networks by 2014
The cable operators under the digitisation regime are legally bound to transmit only digital signals, while the customer canaccess the subscribed channels through a set-top box
The number of DTH subscribers in India is expected to increase from 44 million currently to 200 million by 2018
The entire process of digitisation will be carried out in four phases
Phase City/Region Date for switchover*
Phase 1
Delhi 31 st October 2012
Mumbai 31 st October 2012
Kolkata 15 th January 2013
Chennai Not completed
Phase II 38 cities in 15 states 31 st March 2013
Phase III All remaining urban areas 30 th November 2014
Phase IV Rest of India 31 st March 2015
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Source : Digital Dawn, KPMG Report 2013, Aranca Research
Advantages of Digitisation
Higher consumer preference, which lacked in the former Conditional Access System (CAS)
Consumers will be able to select content of their choice as well as indefinitely store and access digital content
The digital platform in films also includes the ‘video -on- demand’ feature on television
Higher transparency; subscriber declaration level is expected to increase to 100 per cent under post-digitisation regime ascompared to 15 – 20 per cent as declared by local cable operators (LCOs) to multiple system operators (MSOs)
Stake-holder revenues share Pre-digitisation Post-digitisation
Consumer ARPU 100 100
Local Cable Operators (LCOs) 65 – 70 35 – 50Distributor 5 0 – 5
Multiple System Operators (MSOs) 15 – 20 25 – 30
Broadcaster 10 – 15 30 – 35
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Average revenue per user per month (USD)
Source: KPMG Report 2013, Aranca ResearchNote: F - Forecast
Presence of analog cable and higher contribution has led tolower Average Revenue Per User (ARPU) level, which isaround USD3.0 for a digital pay television
However, with higher scope of introduction of new andniche channels with digitisation, ARPU levels are expectedto increase
3.03.1 3.1
3.13.12.9
3.1
3.33.7
4.2
4.6
2011 2012 2013F 2014F 2015F 2016F
Analog Digital
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Source: KPMG Report 2013, Aranca Research
Consolidation will be the major route to grow inorganicallyfor entertainment companies in order to expand theirportfolios and enter into new regions
A few big deals have come about, the most notable onesbeing Network 18 Media & Investments Limited, Eenadu TVand Sony-multi screen Media, with a combined investmentof 666 million
Mergers and Acquisitions (M&A) deals in 2012
Acquirer Target Deal dateDeal value
(USDmillion)
Network 18 Media &Investments Limited Eenadu TV January 395
Jagran PrakashanLimited
NaiDunia MediaPrivate Limited April 44
The Aditya BirlaGroup
Living MediaIndia Limited May 70
Sony Corporation Multi ScreenMedia June 271
Sahara India PariwarDigicable
Network (India)Private Limited
August 52
PVR Limited Cinemax IndiaLimited November 119
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Cumulative FDI inflows into Information andBroadcasting from April 2000 (USD billion)
Source: DIPP, Aranca ResearchNotes: DIPP - Department of Industrial Policy and Promotion,
FY13* - Data from April 2012 - August 2013
FDI inflows into the entertainment sector between April2000 and August 2013 stood at USD3.5 billion
By August 2013, the share of FDI in ‘Information andBroadcasting’ was 1.7 per cent of total FDI inflows into thecountry
Demand growth, supply advantages and policy support arethe key drivers in attracting FDI
0.6
1.3
1.82.2
2.9
3.5
FY08 FY09 FY10 FY11 FY12 FY13*
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Source : Company Annual Reports, Aranca Research
Television content
Motion pictu res
Games content
Broadcasting
Television content
Motion pictures
Games content
Broadcasting
Started as acontent providerfor Doordarshan
Ventured intointernetcontent
creation andaggregation
Launched IPO asUTV Software
communicationsLtd
LaunchedHungama TV
Disney becomes amajority share holder with
a stake of 32.1 per cent
Deal with Disneyto dub its content
into Indianlanguages
AcquiresIndiagames Ltd,enters gamingsoftware and
content
Became world’sfirst company torecord over 100
million downloadson Nokia store
1990 1996 2000 2004 2005 2007 2008 2012
Interactive
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Source : Company website, Aranca Research
1985 1993 2000 2003 2005 2007 2008 2012
‘SUN TV’ islaunched with
daily three hoursof programming
Launches SUNDirect to provide
DTH services
Launches threepay channels andfour ad-free action
movie channels
Starts its first FMChannel
‘Sumangali FM’
Direct to Home
Motion pictures
Radio
Newspaper
Magazine
Broadcasting
Founded asSumangali
Publications
Launches a slew ofother channels in
various South Indianlanguages
AcquiresDinakaran
newspaper, TamilNadu’s leading
daily
Enters FilmProduction and
Distributionthrough ‘SUN
Pictures’
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Adlabs Imagica
Source: Company website, Aranca Research
Adlabs Imagica, a flagship project of Adlabs EntertainmentLtd is a 300-acre entertainment theme park located on theMumbai – Pune expressway
It is India's most elaborate theme park for a total value ofUSD294 million
The park features 21 attractions including rides, film showsand live acts drawn from Indian mythology and Bollywoodcinema
The total footfall is expected to be around 2-3 million peryear
Salient features
• Total area - 300 acre
• Total cost - USD294 million
• Visitor capacity - 10,000 to 15,000 visitors per day
• Ticket cost - Weekday (USD23) weekends (USD28)
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Dish TV revenues (USD million)
Source: Company website, Aranca Research
Note: CAGR - Compound Annual Growth Rate
Dish TV is Asia's largest and India's first direct-to-home orcommonly known as DTH company
Dish TV India Limited, a division of Zee Network Enterprise(Essel Group Venture) provides DTH satellite television
Dish TV ranks 5 th on the list of media companies in theFortune India 500
The company’s revenue rose at a CAGR of 36.1 per cent toUSD408.4 million in FY13 87.4
149.4
233.7
320.9
420.5 408.4
FY08 FY09 FY10 FY11 FY12 FY13
CAGR: 36.1 %
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15.1 16.8
19.4
22.726.4
30.5
2012 2013F 2014F 2015F 2016F 2017F
Market size (USD billion)
Source: KPMG Report 2013, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate
F - Forecast
Over 2012 – 17, the total market size is expected to expandat a CAGR of 15.1 per cent to USD30.5 billion
The next five years will see digital technologies increasetheir influence across the industry leading to a sea changein consumer behaviour across all segments
CAGR: 15.1%
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Size of major industry segments (USD billion)
Source: KPMG Report 2013, Aranca ResearchNotes: CAGR - Compound Annual Growth Rate
F - Forecast
Television will continue to be the lead contributor to theoverall industry growth. The segment is estimated to expandto USD15.6 billion by 2017 (CAGR of 18.1 per cent since2012)
Radio, Animation & VFX, Gaming and Digital advertisingare emerging as the fast growing segments
During 2012 – 17, these segments are expected to expand ata CAGR of:
Digital advertising (32.6 per cent)
Gaming (22.9 per cent)
Radio (17.2 per cent)
Animation (23.9 per cent)
0.0 5.0 10.0 15.0
Music
Radio
Gaming
Out of Home
Digital Advertising
Animation and VFX
Films
Television
2017F 2012
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Size of the animation industry in India
(USD Billion)
Source : KPMG Report 2013, Aranca ResearchNotes: F – Forecast, VFX - Visual Effects, CAGR - Compound Annual Growth Rate
Animation encompasses three key segments; these are ‘Animation Entertainment’, ‘Visual Effects (VFX)’ and ‘Custom Content Development‘
India’s animation industry has been growing steadily; from a size of USD0.4 billion in 2008, the sector is forecasted to posta CAGR of 15.8 per cent to reach USD1.3 billion over 2008 – 17
Share of sub- segments in India’s
animation industry (2012)
16%
20%
64%
Animation VFX
AnimationEntertainment
Custom ContentDevelopment
0.40.4
0.50.7 0.6
0.7 0.80.9
1.1
1.3
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3 F
2 0 1 4 F
2 0 1 5 F
2 0 1 6 F
2 0 1 7 F
CAGR: 15.2%
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Source : ‘’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca ResearchNotes: * We have portrayed the intensity of opportunities in each segment based on the extent
of Indian players’ current presence in that segmentE - Estimate
Gaming can be classified under three segments – ‘Personal Computer Games (PC)’, ‘Mobile Games’, ‘Console Games’ and ‘Online Games’
Revenues from Console Gaming are expected to reach USD343.8 million by 2017E from USD144.5 million in 2012.Revenues from Mobile and PC & Digital TV are expected to grow to USD329.1 million and USD96.9 million by 2017 fromUSD104.2 million and USD32.9 million, respectively in 2012
Opportunities* for Indian gaming firms across the segment’s value chain
ConceptCreation
Pre-production Development Post- Productionand Testing
Final Testing
Console Very Strong Strong Good Good Good
Mobile Good Good Good Good Good
PC Strong Strong Good Good Good
Online Strong Strong Good Good Good
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Number of subscribers (Millions)
Source: KPMG Report 2013, Aranca Research
Note: F - Forecast
The share of digital cable as well as DTH service providersis expected to increase post-digitisation
Total subscription for DTH is expected to increase to 90million subscribers by 2017 from 28 million in 2010
Total subscription for digital is expected to increase to 81million subscribers by 2017 from 5 million in 2010
68 68 58 4831
10 5 3
5 6 19 32 4967 74 81
28 37 44 52 63 76 8490
78
99
89
98
2010 2011 2012 2013F 2014F 2015F 2016F 2017F
Analog Digital DTH DD Direct
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Television
• Television is projected to garner a share of 51 per cent in the television pie by 2017 (asaddressable digitisation is expected to cover the entire country by then)
• Television advertisement revenue is also expected to witness robust growth and increasefrom USD2.3 billion in 2012 to USD4.4 billion by 2017
Animation
• The Indian animation industry was worth USD650 million in 2012 and is expected to
expand at a CAGR of 15.8 per cent to USD1.4 billion by 2017• Growth in international animation films, especially 3D productions, and the subsequent
work for Indian production houses will help growth in this segment
• The print industry was worth USD4.1 million in 2012 and is expected to develop at aCAGR of 8.7 per cent to USD6.3 billion by 2017
• Newspapers and niche magazines are likely to drive industry growth• Accelerated growth is forecasted in regional print and local news segments
Source : KPMG Report 2013, Aranca ResearchNote: CAGR - Compound Annual Growth Rate
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Film
• Size of the Indian film industry is expected to touch USD3.6 billion by 2017, up fromUSD2.1 billion in 2012
• Increasing digital screens and 3D films are expected to help industry growth• Big ticket releases lined up for the next couple of years are also expected to boost
revenues
Radio
• Size of the Indian radio industry is expected to reach USD503 million by 2017, up fromUSD234 million in 2012
• Phase III of e-auctions for FM radio licenses will provide an impetus to the segment• Radio advertising is another area likely to experience accelerated growth
Music
• Size of the music industry is expected to grow to USD413 million by 2017, up fromUSD195 million in 2012
• Mobile VAS and arrival of 3G are likely to lead to a surge in paid digital downloads• Phase III radio licensing will also help in increasing music revenues from radio
Source : KPMG Report 2013, Aranca ResearchNote: VAS - Value Added Service
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Indian Motion Picture Producers’ Association (IMPPA) "IMPPA HOUSE”, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050Tel: 91-22-26486344/45/1760Fax: 91-22-26480757Website: www.indianmotionpictures.com/imppa/index.html
The Film and Television Producers Guild of IndiaG-1, Morya House, Veera Industrial Estate,Off Oshiwara Link Road, Andheri (W), Mumbai - 400 053Tel: 91-22-66910662Fax: 91-22-66910661E-mail: [email protected]: www.filmtvguildindia.org
Newspapers Association of India (NAI) A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092
Tel: 91-9971847045, 9810226962E-mail: [email protected]: www.naiindia.com
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Association of Radio Operators for India (AROI)304, Competent House, F-14, Connaught Place, New Delhi - 110001Tel: 91- 124-4385887e-mail: [email protected]: www.aroi.in
The Indian Music Industry (IMI)Crescent Towers, 7 th FloorB-68, Veera Estate, Off New Link Road, Andheri West, Mumbai - 400 053Tel: 91-22- 26736301 / 02 / 03Fax: 91-22-26736304E-mail: [email protected]: www.indianmi.org
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AGV: Animation, Gaming and VFX
CAGR : Compound Annual Growth Rate
DIPP : Department of Industrial Policy and Promotion, Ministry of Commerce and Industry
DTH: Direct to Home
FDI: Foreign Direct Investment
FM: Frequency Modulation
FY: Indian Financial Year (April to March)
So FY10 implies April 2009 to March 2010
GST : Goods and Service Tax
IPO : Initial Public Offering
M&A: Merger and Acquisition
M&E: Media and Entertainment
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PPP : Purchasing Power Parity
USD : US Dollar
Conversion rate used: USD1= INR 54.45
VAS : Value Added Services
VFX: Visual Effects
Wherever applicable, numbers have been rounded off to the nearest whole number
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Year INR equivalent of one USD
2004-05 44.95
2005-06 44.28
2006-07 45.28
2007-08 40.24
2008-09 45.91
2009-10 47.41
2010-11 45.57
2011-12 47.94
2012-13 54.31
Exchange rates (Fiscal year)
Year INR equivalent of one USD
2005 45.55
2006 44.34
2007 39.45
2008 49.21
2009 46.76
2010 45.32
2011 45.64
2012 54.69
2013 57.59
Exchange rates (Calendar year)
Average for the year
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