Media and Entertainment Sector Report February 2018

For updated information, please visit www.ibef.org February 2018
MEDIA AND
ENTERTAINMENT

Table of Content
Executive Summary……………….….…….3
Advantage India…………………..….……..5
Market Overview …………………….……..7
Recent Trends and Strategies…….……..20
Growth Drivers…………………….............22
Opportunities…….……….......……………29
Industry Associations……………....……...36
Case Studies….……………....……………33
Useful Information……….......…………….38

For updated information, please visit www.ibef.orgMedia and Entertainment3
EXECUTIVE SUMMARY … (1/2)
 Household televisions increased to 183 million in 2017* from 181 million in 2016 with 780 million TV viewing
individuals.
 In 2016, television market generated a revenue of US$ 9.62 billion.
Second largest TV
market
Note: * March 2017
Source: KPMG – FICCI Report, 2016; Dish TV Investor Presentation, Ministry of Information and Broadcasting (MIB), NASSCOM, Telecom Regulatory Authority of India (TRAI), Aranca
Research
 As of 2016, India had one of the largest broadcasting industries in the world with approximately 892 private
satellite television channels. As of 2016, there are 243 FM radio channels and 190 operational community radio
networks.
 The Ministry of Information and Broadcasting (MIB) has officially completed all the four phases of digitisation, As of
March 2017, a total of 64.4 million set-top boxes (excluding Tamil Nadu) were set up in Phase 3 and Phase 4
areas.
 Total of 243 FM channels (21 from the Phase - I and 222 from Phase – II) are operational. Under the phase III, the
Cabinet has already given permission to 135 FM channels in 69 cities to operate
 Telecom Regulatory Authority of India (TRAI) plans to introduce a policy for broadcasting sector with a vision of
2020. The policy aims to usher a new era in the broadcasting sector where MRP of the TV channel will be
declared by broadcasters directly to the consumers, and will bring more transparency and choices to the
consumers.
One of the largest
broadcasting market

EXECUTIVE SUMMARY … (2/2)
Source: KPMG – FICCI Report, 2016; Dish TV Investor Presentation, Ministry of Information and Broadcasting (MIB), NASSCOM, Telecom Regulatory Authority of India (TRAI)
 The animation and Visual Effects (VFX) industry showcased a growth of 16.4 per cent, largely led by a 31 per
cent growth in VFX industry.
 During 2016-21, the segment is expected to grow at a higher CAGR of 17.2 per cent, largely led by the continued
growth in outsourced services and the swelling use of animation and VFX services in the domestic television and
film space, respectively.
Fast growing animation
industry
 The Indian film industry in expected to grow at a rate of 10.4 per cent to become the third largest cinema market,
after US and China by 2021.
 Digitalisation has played the major role in the growth of Indian film industry
 By 2019, cinema exhibition industry in India is expected to have over 3,000 multiplex screens
Exceptional growth in
film industry
 Total subscriber base for Indian television industry is expected to increase to 195 million by 2019 from 183 million
in 2017.
 As of December 2016, registered DTH subscriber base in India stood at around 97.05 million. As of September
2017 active DTH subscriber base in the country stood at around 66.09 million.
Rising no of subscribers

Media and Entertainment
ADVANTAGE INDIA

ADVANTAGE INDIA
 Rising incomes and evolving lifestyles have
led to higher demand for aspirational products
and services
 Higher penetration and a rapidly growing
young population coupled with increased
usage of 3G, 4G and portable devices would
augment demand
 Entertainment Industry is set to expand at a
CAGR of 11.80 per cent over 2016–21, one of
the highest rates globally
 Television and AGV segments are expected
to lead industry growth and offer immense
growth opportunities in digital technologies as
well.
 From April 2000 to December 2017,
FDI Inflows in Information and
Broadcasting (including print media)
sector reached US$ 7,071.63 million
 Increasing M&A activity
 More big-ticket deals such as Walt
Disney- UTV, Sony-ETV and Zee- Star
 Entry of big players across all segment
of industry.
 Policy sops, increasing FDI limits
 Measures such as digitisation of cable
distribution to improve profitability and ease
of institutional finance
 Increasing liberalisation and tariff relaxation
 In 2011, Indian Government passed the
“The Cable Television Networks
(Regulation) Amendment Act, 2011” for
digitisation of cable television networks.
ADVANTAGE
INDIA
Source: KPMG Report 2015, KPMG – FICCI Report, 2016; Dish TV Investor Presentation, Ministry of Information and Broadcasting (MIB), Aranca Research
Notes: Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition, CAGR - Compound Annual Growth Rate, FDI - Foreign Direct Investment, Deadline for the entire
country to be digitised is December 2014, E – Estimate, P – Projected

MARKET OVERVIEW

THE ENTERTAINMENT SECTOR IS SPLIT INTO NINE
SEGMENTS
Source: : KPMG – FICCI Report, 2016, Aranca Research
Entertainment
Television
Gaming
Animation
and VFX
Out of
Home
(OOH)
Music
Digital
Advertising
Radio
Note: VFX - Visual Effects
Print
Films

THE INDIAN ENTERTAINMENT INDUSTRY IS
GROWING RAPIDLY
 Indian media and entertainment (M&E) industry grew at a CAGR of
11.61 per cent from 2011-2016; and is expected to grow at a CAGR
of 13.9 per cent to touch US$ 37.55 billion by 2021 from US$ 19.59
billion in 2016.
 The next 5 years will see digital technologies increase their influence
across the industry leading to a sea change in consumer behaviour
across all segments
 The entertainment industry is projected to be more than US$ 62.2
billion by FY25
 With an intent of ushering in an era of conversational computing,
Microsoft has released an artificial intelligence chatbot known as
Ruuh for Facebook Messenger. The English speaking chatbot is only
available to users in India and is to be used for entertainment
purposes.
 The industry provides employment to 3.5-4 million people, including
both direct and indirect employment as of 2017.
Market Size US$ billion
11.31
12.74
14.25
15.92
17.95
19.59
21.86
24.93
28.66
32.83
126.20
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
2011
2012
2013
2014
2015
2016
2017P
2018P
2019P
2020P
2022P
Source: : KPMG – FICCI Report 2017, Aranca Research
Notes: CAGR - Compound Annual Growth Rate, P – Projected

SEGMENTS OF INDIAN ENTERTAINMENT INDUSTRY
44.24%
24.03%
11.27%
6.09%
4.71%
2.44%
2.07%1.80% 0.97%
TV
Print
Films
Digital Advertising
Animation & VFX
Gaming
OOH
Radio
Music
Source: KPMG – FICCI Report 2017, Economic Times, Aranca Research
 The entertainment industry continues to be dominated by the
television segment, with the segment accounting for 44.24 per cent
of revenue share in 2016, which is expected to grow further to 48.18
per cent by 2021
 Television, print and films together accounted for 79.54 per cent of
market share in 2016, in value terms
 Print media would be the second largest sector in the overall
entertainment industry in India, following which sectors of Out of
Home (OOH) and Radio are expected to contribute almost 2 per cent
each to the entire industry by 2021
 India print media industry generated revenues worth US$ 4.51 billion
in FY2017 (till December 2016).
 PVR Cinemas plans to add around 75 screens across India during
FY 2017-18, thereby raising its capacity to 650 screens and has a
target to achieve 1,000 screens in India by 2020.
 Google's video platform, YouTube, plans to increase its user base in
India to 400 million, as rising internet penetration in the rural areas
will enable the consumers to access videos on their smartphones.
 The Indian digital advertising industry is expected to grow at a
Compound Annual Growth Rate (CAGR) of 32 per cent to reach Rs
18,986 crore (US$ 2.93 billion) by 2020, backed by affordable data
and rising smartphone penetration.
Visakhapatnam port traffic (million tonnes)Size of major industry segments (2016)
48.18%
17.82%
8.54%
12.17%
5.44%
2.93%
1.89%
1.98% 1.05% TV
Print
Films
Digital Advertising
Animation & VFX
Gaming
OOH
Radio
Music
Size of major industry segments (2021P)
Notes: E – Estimated, P – Projected, OOH – Out of Home, TV – Television

TELEVISION, ONE OF THE LARGEST AND FASTEST
GROWING SEGMENT
65.44% 66.18%
34.56% 33.82%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
2017E 2021F
Subscription Revenue Advertising Revenue
Source: KPMG – FICCI Report 2017, Aranca Research
 Nonetheless, the share of subscription in the overall revenue of the
TV segment is expected to increase to 66.18 per cent by 2021.
 In CY 2017, television market is expected to generate US$ 10.15
billion revenue.
Visakhapatnam port traffic (million tonnes)Television Market Revenue
Notes: E – Estimated, F – Forecast, TV – Television, CY – Calender Year

RADIO, ANIMATION and VFX, GAMING AND DIGITAL
ADVERTISING ON HIGH GROWTH PHASE
Source: FICCI Report 2017, Aranca Research
Note: VFX- Visual Effects; P – Projected, E --Estimated FICCI Report 2017, Aranca Research,
^ - according to Digital First Journey report by KPMG
 Radio, animation and VFX, gaming and digital advertising are also
emerging as fast growing segments.
 During 2008-21, these segments are expected to increase at CAGRs
of:
• Digital advertising (32 per cent)
• Gaming (15.97 per cent)
• Radio (10.93 per cent)
• Animation (13.34 per cent)
 With increasing use of internet and other digital resources, Digital
Advertising is expected to grow at the fastest rate among peers like
print media, radio and outdoor advertising.
 India digital advertising market has reached US$ 1 billion in FY
2016-17.
 Advertising expenditure in India is expected to grow 13 per cent
year-on-year to Rs 69,346 crore (US$ 10.71 billion) in 2018.
 Expenditure on digital advertisements in India is expected to
increase at CAGR of 30.8 per cent between 2016-21^, as internet
penetration and data consumption increases in the country.
Visakhapatnam port traffic (million tonnes)Industry size of emerging segments (US$ million)
-
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
5,000.0
Digital Advertising Gaming
Animation & VFX Radio

ADVERTISING REVENUES
Source: KPMG – FICCI Report 2017, Economic Times, Aranca Research
 In 2016, total spending on advertising across all media across the
entertainment industry in India stood at US$ 7.85 billion, which is
expected to touch Rs 60,972 crore (US$ 9.52 billion) by the end of
2017 and Rs 68,334 crore (US$ 10.67 billion) by 2018 and Rs 1.07
trillion (US$ 16.70 billion) by 2020.
 Print was the largest contributor, accounting for 38.11 per cent of the
advertising share in 2016 and is projected to be 40.7 per cent in
2017
 Print media and television together contributed for 76.2 per cent of
total revenue from advertising in 2016.
 The number of newspaper readers in India has increased by 38 per
cent between 2014 and 2017 to reach 407 million.
 Television advertising generated a revenue of US$ 3.13 billion in
2016
 Mobile advertising has emerged as the 3rd largest advertising
medium in India after television and print advertising. Spending on
mobile advertising in India is expected to grow to US$ 1.53 billion by
the end of 2018.
 India is one of the top five markets for the media, content and
technology agency, Wavemaker, where it services clients like Hero
MotoCorp, Paytm, IPL and Myntra among others.
38.11%
38.09%
14.56%
4.94%
4.30%
Print
TV
Digital Advertising
OOH
Radio
Advertising revenue share (2016)
Notes: E – Estimated, F – Forecast, P – Projected, OOH – Out of Home, TV – Television
6.40
7.40
7.85
9.52
10.67
16.70
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2011
2015
2016
2017E
2018F
2020F
Total Growth Rate-RHS
Advertising revenue forecast (US$ billion)

REGIONAL ENTERTAINMENT
25.7%
24.4%
11.6%
9.2%
5.0%
5.0%
2.3%
2.1%
0.4% 13.0%
Tamil
Telgu
Kannada
Malayalam
Bengali
Marathi
Oriya
Bhojpuri
Gujarati
Others
Source: KPMG – FICCI Report 2016 and 2017, Economic Times, Aranca Research
 Regional Entertainment channels comprising mostly of regional
GECs (General Entertainment Channels), regional movies and
regional music.
 In print media, the rise in literacy rates, significant population growth,
the rise in incomes in smaller towns and the entry of big players in
regional markets is likely to drive future expansion of circulation and
readership across India.
 Viewership in South India is dominant for regional entertainment as
Tamil and Telugu channels together account for more than half of
the total viewership. It is comparatively less for Oriya and Bhojpuri,
which is equivalent to only 2 per cent each.
 Between 2015-2017, YouTube’s regional viewership in India has
tripled, with the top 10 regional YouTube channels having subscriber
bases ranging between 300,000-800,000.
Visakhapatnam port traffic (million tonnes)Viewership in regional channels in 2016

MUSIC INDUSTRY
169.50
161.09
188.10
192.10
198.28
164.27
160.58
168.36
181.46
218.24
0.00
50.00
100.00
150.00
200.00
250.00
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017P
 Music entertainment revenues is expected to touch US$ 396.22
million by 2021 from US$ 169.65 million in 2008, registering a growth
of 6.7 per cent
 By 2020, the number of online music listeners in India will reach 273
million, while the digital music revenues is likely to cross US$ 507.7
million.
Visakhapatnam port traffic (million tonnes)Revenues for the music industry (US$ Million)
Source: FICCI Report 2017, Aranca Research

KEY PLAYERS IN THE MEDIAS AND ENTERTAINMENT
INDUSTRY
Television Print Films Music
Star India Pvt Ltd Bennett, Coleman and Co
Ltd
Yash Raj Films Studios Saregama India Ltd
Zee Entertainment Enterprises
Ltd
HT Media Ltd Eros International
Media Ltd
Super Cassettes
Industries Ltd
Multi Screen Media Pvt Ltd Living Media India Ltd Red Chillies
Entertainments Pvt Ltd
Tips Industries Ltd
Source: Company websites

PORTER’S FIVE FORCES FRAMEWORK ANALYSIS
 Low - The number of suppliers is very
high which leads to the low bargaining
power with them
 Increasing number of content
providers
Bargaining Power of Suppliers
�� Significant sporting events like World
Cup,T20,etc and other cultural events
Threat of Substitutes
 High - Highly fragmented industry
that is no single enterprise has large
enough share to influence the entire
sector
 High fixed costs and highly perishable
products
Competitive Rivalry
 Low - High sunk costs are involved
 High capital requirements
 Access to distribution is difficult
Threat of New Entrants
 High – Due to increased
globalisation, consumers loyalty
towards one channel is less, as
variety of alternative sources of
entertainment are available
Bargaining Power of Buyers
Positive Impact
Neutral Impact
Negative Impact

RECENT TRENDS
AND STRATEGIES

NOTABLE TRENDS IN THE MEDIA AND
ENTERTAINMENT INDUSTRY… (1/2)
Source: KPMG – FICCI Report, 2017, Economic Times, Aranca Research
 The government announced digitisation of cable television in India in 4 phases, which was slated for completion
by the end of December 2016. Phase III was almost completed in December 2015, while Phase IV is under
progress.
 The Direct-To-Home (DTH) subscription is growing rapidly driven by content innovation and product offerings
 Television Industry has seen a tremendous growth (CAGR: 14.3 per cent) over the past 6 years (2010-16),
growing from US$6.46 billion in 2010 to US$9.62 billion in 2016
Television
 The print industry is estimated to reach US$4.76 billion in 2016 and is expected to grow at a CAGR of 7.3 per
cent between 2016-2021, with the market expected to reach US$6.69 billion by 2021.
 Increasing income levels and evolving lifestyles have led to robust growth in niche magazines segment.
 Considering the huge potential in regional print markets, national advertisers are entering these markets to
increase their advertising share.
Print
 The Indian film industry is largest producer of films globally with 400 production and corporate houses involved in
film production.
 The revenues earned by the Indian film industry in 2016 would reach US$2.31 billion and are expected to further
grow at a CAGR 7.7 per cent during 2016-2021. Increasing share of Hollywood content in the Indian box office
and 3D cinema is driving the growth of digital screens in the country.
Film
 With increasing penetration of internet and digital mediums, digital segment is expected to outperform other
sectors of entertainment.
 Although Out-of-Home segment has a low contribution to the total of entertainment industry, in coming years it is
going to witness a significant growth.
 The market size for Out of Home (OOH) entertainment reached US$388.21 million in 2016.
Out of Home and digital

 Increasing FM enabled phones and car music systems
 As of December 2015, 243 channels are operational in 86 cities in India. Further, 21 private FM channels were
set up during Phase-I and an additional 222 channels were set up during Phase-II
 The government is planning to auction 1,000 new FM channels by the end of 2016. Liberalisation of policy on
community radio took place in 2008 which led to 29 community radio stations getting operational in the country
 In 2016, the radio industry in India accounted for a market size of US$ 337.6 million, registering growth of
CAGR 14.54 per cent during 2012–16.
NOTABLE TRENDS IN THE MEDIA AND
ENTERTAINMENT INDUSTRY… (2/2)
Source: KPMG – FICCI Report, 2017, Economic Times, Aranca Research
 Growing focus on the ‘kids genre’ and rise in dedicated TV channels for them. As the advertising industry grows,
the share of animation driven advertisements are expected to also grow
 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
 Content localisation such as T20fever.com, IPL, Khel Kabaddi, etc.
 Animation and VFX industry in India is expected to grow at a CAGR of 17.2 per cent over 2016-2021 and the
gaming industry is expected to grow at a CAGR of 18.2 per cent during the same period.
Animation, Gaming and
VFX (AGV)
 The music industry is on fast paced growth with increasing international associations. 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 and digital revenues are expected to reach
US$394.22 million by 2021. Digital revenues contribute 55 per cent of the music industry and is expected to
contribute close to 62 per cent by 2018.
Music
Radio

STRATEGIES ADOPTED
Source: Aranca Research, KPMG Report on Engineering sector
 The manufacturing companies such as Videocon is offering combo deals such as LED/LCD sets with
Videocon set-up boxes and dish services
 The Dish TV is also offering the set up boxes with many additional channels
 Increasing digitisation in the country is helping such companies to further add up to their revenues
Marketing strategies
 As television industry is a dominant segment in the entertainment industry even the film makers promote their
films at this platform so as to reach to the mass audiences for example the reality shows, TV advertisements,
etc
 Many film producers, actors, etc have shifted to the television industry so as to remain in the race and
maintain their fan following
 TV programmes being used as a medium of promoting films or other entertainment events
 After bagging media rights of Indian Premier League (IPL), Star India has also won broadcast and digital
rights for New Zealand Cricket upto April 2020.
Television: A common
medium
 Audience is the ultimate consumer in this industry and therefore films, advertisements, music and all the
products of entertainment sector is based on the tastes and preferences of the audiences of the nation
Audience: the ultimate
consumer
 Regional entertainment is growing and therefore, the suppliers are able to expand their forte in the products
 Zee Television, Star TV have their regional channels both for entertainment and news
 The South Indian television industry is one of the oldest operational television sectors across the nation and
is further growing due to the regional content
Viewership in regional
entertainment

GROWTH DRIVERS

INCOME FACTOR DRIVING GROWTH
1.5% 2.0%
5.0%3.0% 6.0%
11.0%
8.0%
15.0%
20.0%
42.0%
45.0%
46.0%
44.0% 31.0% 18.0%
2005 2016 2025F
Elite(>30800) Affluent(15400-30800)
Aspirers(7700-15400) Next billion(2300-7700)
Strugglers(<2300)
 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
 The entertainment industry will also benefit from continued rise in the
propensity to spend among individuals; empirical evidence points to
the fact that decreasing dependency ratio leads to higher
discretionary spending on entertainment.
 Traditionally only advertising has been a key source of revenue for
Media and Entertainment industry, but off late revenue from
subscription and value added services has also contributed
significantly. With consumers willing to pay for content and extra
services, the subscription segment will play an important role in the
post digitisation era.
Visakhapatnam port traffic (million tonnes)
Indian residents shifting from low-income to high-income
groups
Source: McKinsey Quarterly Report
Note: Income distribution is calculated in constant 2015 dollars; $1=65. Because of rounding, not all percentages add up to 100. F - Forecast

 FDI limit in radio, including private FM channels have been increased from 26 per cent to 49 per cent
 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
POLICY SUPPORT AIDING SECTOR GROWTH … (1/2)
Notes: FDI – Foreign Direct Investment, FII – Foreign Institutional Investors
 Digitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help
players improve their value chain
 FDI limit for DTH satellite and digital cable network was raised from 74 per cent to 100 per cent by the
government
 No restriction on foreign investment for up-linking and downlinking of TV channels other than news and current
affairs
Television
 Co-production treaties with various countries such as Italy, Brazil, UK and Germany to increase the export
potential of the film industry
 Granted ‘industry’ status in 2001 for easy access to institutional finance
 FDI of up to 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
Film
Radio

POLICY SUPPORT AIDING SECTOR GROWTH … (2/2)
Source: PwC India Entertainment and Media Outlook 2011, KPMG – FICCI Report 2015 and 2016
 Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthens the royalty claims of
musicians, lyricists and others in the field
 Policies are adopted against digital piracy and file-sharing to block illegal music websites
 Adoption of revenue sharing model by Copyright Board requiring FM radio companies to share 2.0 per cent of
their net advertising revenues with music companies
Music
 100 per cent FDI allowed in the sector through automatic route provided it is in compliance with RBI
guidelines
 The government has carved out a National Film Policy to tap the potential of the film sector mainly for the
animation segment
 State-level initiative by governments to encourage animation industry.
Animation, Gaming and
VFX (AGV)
 FDI/NRI investment of up to 26 per cent in an Indian firm dealing with publication of newspaper and
periodicals
 FDI/NRI investment of up to 26 per cent in publications of Indian editions of foreign magazines
 FDI/NRI investment of up to 100 per cent in publications of scientific and technical magazines/ specialty
journals/ periodicals
Print

ARPU ON AN UPTREND POST - DIGITISATION
3.87
3.98
4.15
4.52
5.07
5.63
6.24
3.34
3.38
3.49
3.92
4.46
5.09
5.74
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2015
2016
2017P
2018P
2019P
2020P
2021P
DTH Digital Cable
 With higher scope of introduction of new and niche channels with
digitisation, ARPU levels are expected to increase in the coming
years
 ARPU for DTH subscribers has seen an increase of around 2.84 per
cent in 2016. The more promising trend is that DTH operators are
able to increase collections from customers by providing additional
services such as HD channels, premium channels and other value
added services.
 HD adoptions continues to drive ARPU growth for DTH players with
the average ARPU of a HD subscribers at ~1.5 to 2 times more the
ARPU of non HD subscribers.
 Digital cable on the other hand, has not seen any significant ARPU
increases as compared to the DTH ARPU. For digital cable,
deployment of different channel packages will be the key driver to
raise ARPUs
 As of December 2016, total number of DTH subscribers stood at
around 97.05 million. As of September 2017, active DTH subscribers
stood at 66.09 million.
Visakhapatnam port traffic (million tonnes)Average revenue per user per month (US$ )
Notes: E – Estimate, F - Forecast
Source: KPMG – FICCI Report 2015 and 2016

KEY M&A DEALS IN THE SECTOR
Acquirer Target Date Value
Dish TV Videocon D2h February 2018 US$ 2.4 billion
Zee Entertainment 9X Media and INX Music October 2017 US$ 24.56 million
Delta Corporation Gaussian Network September 2017 US$ 34.37 million
Dentsu Aegis Network (DAN) SVG Media Pvt. Ltd April 2017 US$ 100-120 million
Hotstar Zapr Media Labs March 2017 NA
Zee Media Corporation (ZMCL) Reliance Broadcast Network (RBNL) November 2016 US$ 237.79 million
Eros International Media Ltd Puja Entertainment June 2016 NA
PVR DT Cinemas May 2016 US$ 81.89 million
Sony Pictures Networks India Pvt. Ltd.
(SPN)
9X Media Pvt. Ltd. April 2016 US$ 33 million
Zee Entertainment Sarthak TV July 2015 US$ 18.83 million
Viacom Inc. Prism TV July 2015 US$ 153 million
Dainik Jagran group Radio City June 2015 US$ 60 million
Carnival Films Private LTD. BIG Cinemas December 2014 US$ 111 million
Prime Focus Ltd Reliance Media Work ltd. July 2014 US$ 61 million
Mergers and Acquisition deals
Source: KPMG – FICCI Report 2015 and 2016, News articles
Notes: NA – Not Available

INCREASING FDI INFLOWS INTO THE SECTOR
0.6
1.3
1.8
2.2
2.9
3.6
3.7
4.0
5.0
6.5
7.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
 FDI inflows into the entertainment sector during April 2000 to
December 2017 rose up to US$ 7.1 billion.
 Demand growth, supply advantages and policy support are the key
drivers in attracting FDI.
Visakhapatnam port traffic (million tonnes)
Cumulative FDI inflows into Information and Broadcasting from
April 2008 –December 2017 (US$ billion)
Note: FY18* – Figures for April 2000 to December 2017
Source: Department of Industrial Policy and Promotion (DIPP)

OPPORTUNITIES

OPPORTUNITY FOR BOTH DIGITAL CABLE AND DTH
PLAYERS
74 69 68 70 65
47
10 1 1 1 1
6 19 25
29 37
45
68 76 79 82 84
31
34
37
40
44 54 71
78
81
84 86
8
9
9
10 15 22
29
31
31
31 30
Analog Cable Digital Cable Pay DTH Free DTH
 The share of digital cable as well as Pay DTH service providers is
expected to increase post-digitisation
 Total DTH subscribers have increased by 28.81 per cent from 59
million in 2015 to 76 million in 2016, driven largely by increase in HD
channels, premium channels and value added services
 Total subscription for DTH is expected to increase to 116 million
subscribers by 2021 from 76 million in 2016
 Total subscription for Digital Cable is expected to increase to 84
million subscribers by 2021 from 45 million in 2016
 DTH industry revenues will reach US$ 5.3 billion by 2020. Revenue
growth will be largely driven by increasing subscriber volumes
Visakhapatnam port traffic (million tonnes)Number of subscribers (million)
Source: KPMG – FICCI Report 2017
Note: P - Projected

GROWTH OPPORTUNITIES IN THE MEDIA AND
ENTERTAINMENT SEGMENTS…(1/2)
 Television industry is expected to grow at CAGR of 14.7 per cent during 2016-2021, increasing from US$
9.17 billion in 2016 and reaching US$ 18.18 billion by 2021.
 Television is projected to garner over 46 per cent of media and entertainment by the end of 2017.
Television
 The print industry was worth US$ 4.73 billion in 2016 and with a CAGR of 7.3 per cent for 2016-2021, it is
expected to reach US$ 6.72 billion by 2021.
 Accelerated growth is forecasted in regional print and local news segments.
 Print industry will reach US$ 5.06 billion in 20171
Print
 The Indian animation industry was worth US$ 928.16 billion in 2016 and is expected to expand at a CAGR of
17.2 per cent to US$ 2.05 billion by 2021.
 Growth in international animation films, especially 3D productions and the subsequent work for Indian
production houses will help the growth in this segment
 Animation, Gaming and VFX industry is expected to reach US$ 1.66 billion in 20171
Animation and VFX
Note: 20171 – Estimated figure from January 2017 to December 2017

GROWTH OPPORTUNITIES IN THE MEDIA AND
ENTERTAINMENT SEGMENTS…(2/2)
Note: 20161 – Estimated figure from January 2016 to December 2016
 Size of the Indian radio industry is expected to reach US$ 745.65 million by 2021, up from US$ 354.10 million
in 20161
 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
Radio
 Size of the music industry is expected to grow to US$ 396.22 million by 2021, up from US$ 190.31 million in
2016
 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
Music
 Size of the Indian film industry is expected to touch US$ 3.22 billion by 2021, up from US$ 2.21 billion in 2016
at a CAGR of 7.7 per cent
 Increasing digital screens and 3D films are expected to help industry growth
 In order to promote India as a location destination for foreign production houses, the government is setting up
a single window clearance system for shooting permissions
 To promote joint productions, co-production agreements have been signed with Italy, Germany, Brazil, UK,
France, New Zealand, Poland, Spain and Canada
Film
 Recent investment of US$ 3 billion was made by Amazon.com Inc., focusing primarily on the establishment
of their online streaming service, Amazon Prime, in the country.
 The niche segment for Netflix in India is much bigger than the whole markets in most countries and the
company has commissioned the highest number of shows in India after US, UK and Japan.
Online Streaming
Services

CASE STUDIES

ZEE ENTERTAINMENT ENTERPRISES LTD. (ZEEL)
360.66
483.12
495.89
599.80
717.89
797.29
944.25
1,038.64
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Visakhapatnam port traffic (million tonnes)ZEEL revenues (US$ million)
CAGR 16.31%
 Zee Entertainment Enterprises Ltd is a media and
entertainment company that was incorporated in November
1982 as Empire Holdings Ltd.
 It entered into the entertainment business in 1992 and was
called Zee Telefirms Ltd subsequently; it was renamed to the
current name in 2007.
 The company is a subsidiary of the Essel Group.
 The company’s revenue rose from US$ 360.66 million in FY10
to US$ 1,038.64 million in FY17.
 The company rose at a CAGR of 16.31 per cent between
FY10-17.
 In 2017, Zee became the only media brand to feature in
Interbrand’s Best Indian Brands 2017.
 In February 2018, Zee Entertainment has launched a new
video streaming platform Zee5, aimed at establishing a
stronger presence in India’s digital market for the next phase
of growth.
Source: Company reports, Aranca Research
Note: CAGR – Compound Annual Growth Rate

DISH TV – ON A HIGH GROWTH PHASE
228.78
314.92
417.60
398.51
414.57
460.05
340.30
477.63
0.00
100.00
200.00
300.00
400.00
500.00
600.00
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Visakhapatnam port traffic (million tonnes)Dish TV revenues (US$ million)
CAGR 11.09%
 Dish TV is Asia's largest and India's 1st direct-to-home or
commonly known as DTH company
 Dish TV India Ltd., a division of Zee Network Enterprise
(Essel Group Venture) provides DTH satellite television
 Dish TV ranks 5th on the list of media companies in the
Fortune India 500
 The company’s revenue rose from US$ 228.78 million in FY10
to US$ 477.63 million in FY17
 During FY10-17, the company’s annual revenue rose at a
CAGR of almost 11.09 per cent
 In February 2018, Dish TV and Videocon D2h entered into a
merger, thereby creating the largest Direct-To-Home (DTH)
company in India, valued at US$ 2.4 billion.
Source: Company reports, Aranca Research
Note: CAGR – Compound Annual Growth Rate

INDUSTRY
ASSOCIATIONS

INDUSTRY ASSOCIATIONS
Agency Contact Information
Indian Motion Picture Producers’ Association (IMPPA)
"IMPPA HOUSE”, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050
Tel: 91-22-26486344/45/1760
Fax: 91-22-26480757
Website: www.indianmotionpictures.com/imppa/index.html
The Film and Television Producers Guild of India
G-1, Morya House, Veera Industrial Estate,
Off Oshiwara Link Road, Andheri (W), Mumbai - 400 053
Tel: 91-22-66910662
Fax: 91-22-66910661
E-mail: guild@filmtvguildindia.org
Website: www.filmtvguildindia.org
Newspapers Association of India (NAI)
A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092
Tel: 91-9971847045, 9810226962
E-mail: contact@naiindia.com
Website: www.naiindia.com
Association of Radio Operators for India (AROI)
304, Competent House, F-14, Connaught Place, New Delhi - 110001
Tel: 91- 124-4385887
e-mail: info@aroi.in
Website: www.aroi.in
The Indian Music Industry (IMI)
Crescent Towers, 7th Floor, B-68, Veera Estate, Off New Link Road, Andheri West,
Mumbai - 400 053
Tel: 91-22- 26736301 / 02 / 03
Fax: 91-22-26736304
Website: www.indianmi.org
The Indian Society of Advertisers
Army and Navy Building, 3rd Floor, 148, Mahatma Gandhi Road
Mumbai- 400001
Tel: +91 (022) 2285 6045 / 2284 3583 / 2204 2116
Fax: +91 (022) 2204 2116
E-mail: isa.ed@vsnl.net

USEFUL
INFORMATION

GLOSSARY
 AGV: Animation, Gaming and VFX
 ARPU- Average Revenue Per User
 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 Modulatio
 FY: Indian Financial Year (April to March)
 GST: Goods and Service Tax
 IPO: Initial Public Offering
 M&A: Merger and Acquisition
 M&E: Media and Entertainment
 PPP: Purchasing Power Parity
 US$: US Dollar
 VAS: Value Added Services
 VFX: Visual Effects
 Wherever applicable, numbers have been rounded off to the nearest whole number

EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 67.09
Q1 2017-18 64.46
Q2 2017-18 64.09
Q3 2017-18 64.74
Year INR Equivalent of one US$
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 67.21
2017 65.12

DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced,
wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or
incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval
of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the
information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a
substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do
they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any
reliance placed or guidance taken from any portion of this presentation.

Media and Entertainment Sector Report February 2018

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