Entertainment industry in India

Entertainment

Entertainment Industry Scenario in India

India has a large broadcasting and distribution industry, consisting of 7 DTH operators, 900 satellite TV channels, 60,000 local cable operators and 6,000 Multi-system operators and few IPTV service providers as well.

India has more than 570 million Internet users, this is the second-largest base after China and it is supposed to reach out to 640 mn by 2019. India has 118,239 registered newspapers and periodicals publications. The industry is growing a the CAGR of 10% and by 2022, and is expected to reach 34 billion USD.

Government of India has allowed 100% FDI in DTH, Multi-System Operator, and mobile TV, Headend-in-the-Sky Broadcasting Services. 100% FDI is also allowed in the printing of magazines including scientific and technical, speciality Journals under the government route.

India’s music industry ranked 15th in the world and will soon enter in top 10 music market by 2022.

India’s advertising industry is forecasted to be the 2nd fastest growing advertising industry after China in Asia. Indian media and entertainment industry is estimated to reach INR 2.35 million, by 2021.

Market Dynamics and Horizon

The media and entertainment industry is estimated to reach 43.93 million USD and will grow at a CAGR of 13.5% by 2024.

The online video market is growing rapidly and supposed to reach 4 billion by 2025 in India, with subscription services.

The film industry is the sunrise industry, reached 100 billion in 2019. India’s video streaming is the game-changer for the industry, boosting the market and generating maximum revenue and it is supposed to grow at a CAGR of 21.82% by 2023. On the other hand, the share of Hollywood content is increasing in the Indian box office and 3D cinema.

Entertainment Industry Growth Drivers

  1. Rising Income – Higher demand for unique products and services
  2. Young Population Increasing – Young population using 4G and ready to use 5G, telecommunication band, and most of the services and products are digitalized so they spend most of their time on smartphones for booking a movie ticket, railway ticket, using online knowledge portal for study, and preparation and so on.
  3. TV Subscriber Rising – By 2019, India TV subscriber is expected to reach 195 million
  4. Film Industry Growth – India’s film industry is the largest industry after China and the US.

Foreign Investment

  1. Lee Fixel invested 35 million USD in inshorts, it is the news and information platform.
  2. Langhard is the production and investment company planning to work with a content company Divinity studio and soon will invest 20 million USD to develop, produce and distribute more than 20 films and web series in the upcoming months.
  3. Netflix is the online web series streaming platform will spend INR 3000 crores on entertainment content in India.
  4. GAANA is the leading music and podcast streaming platform has raised 50 million USD led by Tencent Holdings Ltd, a Chinese internet investment company.
  5. Tiger Global Management LLC is the US-based investment firm has acquired 25% stake in the TVF (he Viral Fever) – an online video content creator for 10 million USD.
  6. A Mexico-based multiplex chain company “Cinepolis” plans to increase 160 more screens by investing 59.6 million USD.
  7. DREAM 11, an online sports bidding app achieved to raise 225 million USD in Sept 2020. Tiger Global Management, TPG Tech Adjacencies (TTAD), ChrysCapital and Footpath Ventures are the investors.
  8. In Sept 2020, pay-per-view movie service recently launched by Zee Entertainment Enterprises Ltd
  9. ALTBalaji is working on the next phase, planning yo reach Hindi speaking belt in order to strengthen its market and presence in India with association with  Chingari (a short-video app).
  10. In Apr 2020, Hotstar was rebranded as  Disney+Hotstar, owned by  Star network. It plans to dub and adding subtitle in Indian speaking language majorly Hindi, Tamil and Telugu.
  11. News and current affairs on the online platform as well as digital audio and video content including web series and movies on OTT streaming platform have been brought under the reach of the ministry of information and broadcasting.

Industry Trends

  1. Television – Issued permission for 86 teleport
  2. Films – Increasing digital screens and 3D films
  3. Mobile Added Services –  Lead paid digital downloads

Major Investors

Check the recent list of all the major investor behind the screen and responsible for the development of the industry,

  1. BBC
  2. NBC Universal
  3. Sony
  4. Bloomberg
  5. Black Stone
  6. News Corp
  7. IPG
  8. Ogilvy & Mather

Media and Entertainment Policies

Here is the list of government policies that encouraging the industry to grow

  1. Cabinet Approve Proposal for Review of FDI Policy

  2. Doing Business 2018

  3. National Communication Policy

Media and Entertainment Schemes

Here are the various government schemes and program for industry development, through the growth of the industry, the government also benefited from. Check the list of the schemes.

  1. Fiscal incentives for setting up of community radio stations

  2. National film heritage mission ( NFHM)

  3. Single window clearance( Film Facilitation Office)

Source: (investindia.gov.in, ibef.org)