Entertainment industry in India

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The media and entertainment industry in India consists of many different segments under its folds such as television, print, and films. It also includes smaller segments like radio, music, out-of-home advertising, animation, gaming and visual effects (VFX) and internet advertising. [1] The entertainment industry in India has registered explosive growth in the last two decades making it one of the fastest-growing industries in India. From a single state-owned channel, Doordarshan in the 1990s there are more than 400 active channels in the country. Worldwide, 2010 saw the global economy begin to recover from a steep decline in 2009. Improved economic conditions in 2010 played a major role in a rebound in customer spend. Since the world economy began to recover from the global financial crisis of 2008, improved economic conditions played a major role in a rebound in consumer spending.

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While India was not critically impacted by the downturn in 2008 and 2009, it demonstrated one of the highest growth rates this year and continued to at a healthy pace. The rising rate of investments by the private sector and foreign media and entertainment (M&E) majors have improved India's entertainment infrastructure to a great extent. As per the recent report by PricewaterhouseCoopers [2] (PwC), Indians are likely to spend more on entertainment in the coming years with steady growth in their disposable income. And as per the combined survey report by KMPG and FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is likely to reach US$20.09 billion by the year 2013. The industry pegged at INR 5808 billion in 2009 as compared to INR 3565 billion in 2005. The Indian media and entertainment industry grew from US$12.9 billion in 2009 to US$14.4 billion in 2010, a growth of 11 percent, according to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and research firm KPMG. The report also states that backed by positive industry sentiment and growing media consumption, the industry is estimated to achieve growth of 13 percent in 2011 to touch US$16.2 billion. As the industry braces for exciting times ahead, the sector is projected to grow at a CAGR of 14 percent to reach US$28.1 billion by 2015. [3]

Television industry

Television is one of the major mass media of India and is a huge industry and has thousands of programs in all the states of India. Today India boasts of being the second-largest television market in the world. [4] The small screen has produced numerous celebrities of their own kind some even attaining national fame. TV soaps are extremely popular with housewives as well as working women. Approximately half of all Indian households own a television. Television first came to India in the form of Doordarshan (DD) on Sept 15, 1959. [5] Doordarshan is the National Television Network of India and also one of the largest broadcasting organisations in the world. Apart from the state-run Doordarshan, there are six direct to home players with 54.52 million DTH users in India with the present prediction; it is likely to overtake the US in terms of the largest DTH market in the world. As 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 channels. Total television viewership of 415 million is amongst the world's highest with nearly 15-16 Television companies beaming programmers to India. The major players being Doordarshan, STAR TV (Satellite Television Asia Network), Zee Television, United Television, CNN, Sony Television, ATN (Asia Television Network), BBC World, SUN TV, Discovery Channel, TNT and others. [6]

India's television business has an estimated $3.4 billion in revenue in 2005, according to PricewaterhouseCoopers. With the government focusing more on digitalization, TV distribution is taking a new shape. Digitalization has been a major challenge for the government as the digital cable is not gaining momentum. According to the new deadline, pan India digitalization is expected to happen by December 31, 2014. Another challenge for the Television Industry is Average Revenue Per User (ARPU). India is amongst the countries with the lowest ARPU as compared to developed countries like the US and UK where ARPU is around US$45 to US$60, India has an ARPU approximately US$3.5.

The Indian print media industry was expected to grow by 9.6 percent over the period 2010-15. [7] The print industry was expected to grow from Rs 128 bn in 2006 to Rs 232 bn by 2011, at 12.6% CAGR. In 2007, while the newspaper industry was estimated at Rs 112 bn, the magazine segment was valued at Rs 16 bn. [8] The newspaper industry was also projected to perform well for the next five years growing at a CAGR of 10.1 percent according to a report titled "India Entertainment and Media Outlook 2011" by PricewaterhouseCoopers. Indian print industry is growing strong and is expected to grow similarly while the global print industry is moving towards digitalization and showing a negative growth rate year on year. The print industry in India is the world's second-largest with over 90 million copies in circulation daily after China with 130 million copies in circulation daily. Most newspapers have an online [9] presence and growing view counts on their portals. Much of the entertainment and media segments are now focusing on growth in regional areas and smaller towns. In 2009, when there was a slowdown, the regional print showed growth in local to local advertisement. [10] In 2010, regional print further increased its share in overall print advertisement revenue pie. Regional papers give advertisers access to localized populations and their niche target audience, difficult to do via national broadcast media. Newspapers have realized the value and have gone one step further and have launched area specific newspapers. [11] With the rise in literacy in past decade has let to the rise of regional newspapers, they have much greater reach and a large audience to entertain. Magazines have not been at their best performance in past few years. However, niche magazine are doing well and is expected to show positive growth. The major challenge faced by this segment of media and entertainment industry is newsprint which continues to threaten profitability. Newsprint forms a major component of the cost of publishing a newspaper. It is roughly 40 -50 percent of the total cost. [12]

Film industry

Films are the most important form of entertainment in India. Film industry in India is among the largest in the world in terms of films produced [13] (approximately 1000) in different languages which include films in Hindi, Kannada, Bengali, Tamil, Marathi, Telugu, Punjabi and Malayalam. [14] Approximately twenty-three million Indians go to see a film every day. Film Federation of India is the apex body of the film industry in India whose objective is to popularise and promote the cinema [15] According to unofficial estimates available in January 2001, the Indian film industry has an annual turnover of Rs. 60 billion (approximately US$1.33 billion). It employs more than 6 million people, most of whom are contract workers as opposed to regular employees. As at the start of 2001, a reasonable budget film in any Indian language could cost US$1.75 million. A low budget Indian language film can be made for even as low as Rs. 15 million. A big-budget Indian language movie can cost in excess of US$30 million. The 'bigness' of the budget is attributable mainly to the high fees paid to 'stars', celebrated music directors, high-end technologies and expensive travel costs to shoot in exotic locations worldwide. At the time of writing, it is believed that lead actors 'stars' are paid around Rs. 100 million (US$440,000) per film. India has a National Film Development Corporation (NFDC) which finances some films. A few filmmakers, who would find it hard to obtain finance from the regular sources, have been financed by the NFDC. [16] However, NFDC cannot be considered to play a central role in the film industry because it finances too few films which, too, are not of the type that has made the Indian film industry so vibrant.

Animation industry

Radio industry

Radio broadcasting in India started in British India in 1923 with the Radio Club of Bombay. All India Radio (AIR) was established in 1936 which is one of the largest radio networks in the world including the AIR FM. AM, FM and even Satellite Radio have made a huge impact on the Industry in India. [17] Most of the media houses either already have a presence in the industry or are looking to get a license in the next round. Famous stations are Radio Mirchi (of the Times Group) has maintained a lead position in most cities it operates in and other channels like Radio City, Red FM, Big FM, Fever, Radio One have also been able to get significant traction. [18] Till 1990 Indian economy was closed, no private player was allowed to enter and Akashwani has the sole responsibility to cater to the wide and culturally diverse Indian consumer base. In the last 5 years, the Radio industry in India has seen a compound annual growth rate of approximately 20% and has grown to a size of around Rs. 8.3 billion in 2008. By the end of 2010, there were 245 active radio stations in India and had a market size of INR 10 billion. It registered a cumulative growth rate of 11 percent from 2007 to 2010. The industry is projected to grow at a CAGR of 20 percent over 2010- 2015 and is expected to be INR 25 billion in terms of revenue. Phase III privatisation of the radio FM is expected to add 839 new radio stations in 294 cities. [19] The government has approved Foreign Direct Investment (FDI) in FM radio channels to 26 percent from the current 20 percent. The Ministry of Information and Broadcasting is planning to release additional frequencies in all markets, automatic renewal of the license at the end of the initial term of the license of the term. [20] One of the major reasons for such an interest in the industry is the increased profitability. The government has cut the license fees to 1/10th of the previous amount.

Controversial IP protection by the Indian film industry

The indian film industry has allegedly engaged in illegal activities by hiring IT professionals who were said to have launched a Denial-of-service attack against websites that they believe are violating the intellectual property of their clients. [21] [22]

Related Research Articles

India's telecommunication network is the second largest in the world by number of telephone users with 1.1724 billion subscribers as on 31 Dec 2019. It has one of the lowest call tariffs in the world enabled by mega telecom operators and hyper-competition among them. As on 31 Dec 2019, India has the world's second-largest Internet user-base with 661.94 million broadband internet subscribers in the country. As of 31 December 2018, India had a population of 130 crore people, 123 crore Aadhaar digital biometric identity cards, 121 crore mobile phones, 44.6 crore smartphones, 56 crore internet users up from 481 million people in December 2017, and 51 per cent growth in e-commerce.

The Indian media consists of several different types of communications of mass media: television, radio, cinema, newspapers, magazines, and Internet-based websites/portals. Indian media was active since the late 18th century. The print media started in India as early as 1780. Radio broadcasting began in 1927. Indian media is among the oldest in the world. It dates back even before the reign of Ashoka. Many of the media are controlled by large, for-profit corporations, which reap revenue from advertising, subscriptions, and sale of copyrighted material. India also has a strong music and film industry.

The television industry in India is very diverse and produces thousands of programs in many of India's official languages. More than half of all Indian households own a television. As of 2016, the country had over 857 channels of which 184 were pay channels.

Economy of India National economy

The economy of India is characterised as a developing market economy. It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). According to the IMF, on a per capita income basis, India ranked 142nd by GDP (nominal) and 124th by GDP (PPP) in 2020. From independence in 1947 until 1991, successive governments promoted protectionist economic policies with extensive state intervention and regulation which is characterised as Dirigism. The end of the Cold War and an acute balance of payments crisis in 1991 led to the adoption of a broad program of economic liberalisation. Since the start of the 21st century, annual average GDP growth has been 6% to 7%, and from 2014 to 2018, India was the world's fastest growing major economy, surpassing China. Historically, India was the largest economy in the world for most of the two millennia from the 1st until 19th century.

Mass media in Sri Lanka

Mass media of Sri Lanka consist of several different types of communications media: television, radio, newspapers, magazines, and Web sites. State and private media operators provide services in the main languages Sinhala, Tamil and English. The government owns two major TV stations, radio networks operated by the Sri Lanka Broadcasting Corporation (SLBC), and newspaper titles in Sinhala, Tamil, and English.

New Delhi Television Limited (NDTV) is an Indian television media company founded in 1988 by Radhika Roy, a journalist. NDTV started off as a content provider for Doordarshan, producing the show The World This Week in November 1988. In 1998 NDTV started its own 24×7 news channel with STAR and later shifted to its own venture in 2003, launching both the English and Hindi versions of the channel. NDTV's slogan is "Experience. Truth First".

The pharmaceutical industry in India was valued at US$33 billion in 2017 and generic drugs account for 20 per cent of global exports in terms of volume, making the country the largest provider of generic medicines globally. According to the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, domestic pharmaceutical market turnover reached Rs 129,015 crore in 2018, growing 9.4 per cent year-on-year and exports revenue was US$17.28 billion in FY18 and US$19.14 billion in FY19.Hyderabad, Mumbai, Pune, Baddi, Himachal Pradesh, Chennai, Bangalore, Ahmedabad, Vadodara, Ankleshwar, Vapi, Sikkim and Kolkata are the major pharmaceutical hubs of India.

Economy of Karachi

Karachi is the financial and industrial capital of Pakistan. As of 2019, Karachi had an estimated GDP (PPP) of $164 billion. The city accounts about half of the total collections of the Federal Board of Revenue, out of which, approximately half are customs duty and sales tax on imports. Karachi produces about 30 percent of value added in large-scale manufacturing, 25% of the GDP, the World Bank identified Karachi as the most business-friendly city in Pakistan. In 2010, research by the global human resources company Mercer found Karachi to be the most inexpensive city in the world.

NDTV 24x7 24-hour English-language news and current affairs television channel based in New Delhi, India

NDTV 24x7 is a 24-hour English-language news and current affairs television channel based in New Delhi, India.

Economy of Karnataka

Karnataka is one of the highest economic growth states in India with an expected GSDP growth of 8.2% in the 2010-11 fiscal year. The total expected GSDP of Karnataka in 2010–2011 is about ₹2719.56 billion. Per capita GSDP during 2008–2009 was US$1034.9. Karnataka recorded the highest growth rates in terms of GDP and per capita GDP in the last decade compared to other states. In 2008–09, the tertiary sector contributed the most to GSDP, followed by the secondary sector, and the primary sector.

The article speaks about the many print, television and radio networks that dominate Chennai city's mass media market.

Mass media in Pakistan provides information on television, radio, cinema, newspapers, and magazines in Pakistan. Pakistan has a vibrant media landscape; among the most dynamic in South Asia and world. Majority of media in Pakistan is privately owned. Pakistan has around 300 privately owned daily newspapers. According to the Pakistan Bureau of Statistics, they had a combined daily sale of 6.1 million copies in 2009. Television is the main source of news and information for people in Pakistan's towns, cities and large areas of the countryside. Marketing research company Gallup Pakistan, estimated there were 86 million TV viewers in Pakistan in 2009.

Chinese publishing and printing industry have a long history. The first printed book discovered so far in the world was published in China during Tang Dynasty. With solid literatures and 5,000-year cultural accumulation, the Chinese publishing industry, however, fell behind western countries due to wars and political issues. The Chinese publishing industry continues to grow in modern times. In 2004, China published 25.77 billion copies of national-level and provincial-level newspapers, 2.69 billion magazines, and 6.44 billion books.

Jawhar Sircar is a former executive of Prasar Bharati.

India has an internet users base of about 475 million as of July 2019, about 40% of the population. This number is expected to be 627 million by the end of 2019. Despite being the second-largest user base in world, only behind China, the penetration of e-commerce is low compared to markets like the United States, or France, but is growing, adding around 6 million new entrants every month. The industry consensus is that growth is at an inflection point.

100 Crore Club is an unofficial designation by the Indian film trade and the media, related to Indian-language films that have net ₹100 crore or more in India after deducting the entertainment tax. By 2012, the ₹100 crore box office target had become "a new benchmark for a film to be declared a hit", and those affiliated with the 100 Crore Club were considered part of the "elite strata" within the Bollywood film community. It was succeeded by the 1000 Crore Club in 2017. Salman Khan (15) and Akshay Kumar (14) are currently the highest holders.

The printing industry in India is an important industry in that country.

The Indian electronics industry saw growth in the early years of the 21st century, encouraged both by government policies and incentives and by international investment. Its key and most resource-intensive segment, the semiconductor industry benefitted from domestic demand growing briskly. Semiconductors were required by a large number of industries, including telecommunications, information technology, industrial machinery and automation, medical electronics, automobile, engineering, power and solar photovoltaic, defense and aerospace, consumer electronics, and appliances. As of 2015, however, the skill gap in Indian industry threatened progress, with 65 to 70 per cent of the market relying on imports.

There are currently about 40 providers of over–the–top media services (OTT) in India, which distribute streaming media over the Internet. In fiscal year 2018, the OTT market in India was worth ₹2,150 crore, and its value grew to ₹35 billion in 2019.

The fast-moving consumer goods (FMCG) industry or consumer packaged goods (CPG) industry is mainly responsible for producing, distributing and marketing fast-moving consumer goods. The FMCG industry is the fourth largest sector in the Indian economy. Household and personal care products accounts for 50% of the sales in the industry, healthcare accounts for 31-32% and food and beverage accounts for remaining 18-19%.

References

  1. ↑ Yojana August, 2011
  2. ↑ "Entertainment and Media". PricewaterhouseCoopers.
  3. ↑ "Welcome to India in Business : Industry & Services". www.indiainbusiness.nic.in.
  4. ↑ nimmi. "Indian Television Industry, Television Industry in India, Television Industry, Television Industries, TV Industry". www.indianmirror.com.
  5. ↑ "Archived copy". Archived from the original on 2013-07-26. Retrieved 2011-11-12.CS1 maint: archived copy as title (link)
  6. ↑ "Archived copy". Archived from the original on 2011-10-31. Retrieved 2011-11-12.CS1 maint: archived copy as title (link)
  7. ↑ "Media and Entertainment". Ibef.org. 2011-11-13. Retrieved 2018-07-30.
  8. ↑ http://www.equitymaster.com/detail.asp?date=09/14/2007&story=5&title=Indian-Print-industry-An-overview
  9. ↑ "Directory of Indian Online Newspapers". Indian Online Newspapers.
  10. ↑ http://www.npes.in/print/INDIAN%20PRINT%20INDUSTRY.pdf Archived 2012-02-27 at the Wayback Machine
  11. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2014-05-17. Retrieved 2014-05-15.CS1 maint: archived copy as title (link)
  12. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2012-04-15. Retrieved 2011-11-12.CS1 maint: archived copy as title (link)
  13. ↑ "Archived copy". Archived from the original on 2011-12-03. Retrieved 2011-11-12.CS1 maint: archived copy as title (link)
  14. ↑ "Archived copy". Archived from the original on 2011-11-01. Retrieved 2011-11-12.CS1 maint: archived copy as title (link)
  15. ↑ Film Federation Of India https://filmfed.org/
  16. ↑ "NFDC: Cinemas of india". www.nfdcindia.com.
  17. ↑ "The Indian Radio Industry".
  18. ↑ "Insights into the Indian Radio Industry". 2009-08-04. Archived from the original on 2011-11-04.
  19. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2012-04-15. Retrieved 2011-11-12.CS1 maint: archived copy as title (link)
  20. ↑ "Home - Ministry of Information and Broadcasting - Government of India". mib.gov.in. Retrieved 2020-11-10.
  21. ↑ "Bizarre Indian Anti-Piracy Group Says It Does DoS Attacks On File Sharing Operations". Techdirt. 9 September 2010. Retrieved 7 October 2014.
  22. ↑ "Bollywood 'recruits DDoS hired guns to fight movie pirates'". The Register. 10 September 2010. Retrieved 7 October 2014.
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