2008
Report on Entertainment Industry of India Prepared By PANKAJ SRIVASTAVA
12/19/2008
INTRODUCTION Few decades back in India, Entertainment meant movies, circus and radio. These were the main and some few sources of entertainment but today when we think ENTERTAINMENT, there are many options like television, movies, internet, amusement park, discotheque, casino, sports etc. The Indian entertainment industry has outperformed the economy and it is one of the fastest growing sectors. After the far-fetched success of information technology and biotechnology, the Indian entertainment industry is all set to boom in the coming years. Be it the changing distribution scenario, consolidations within the industry and segments, technological innovations or changes in regulatory environment, all are contributing to the growth of the sector. Entertainment is a need of everyone weather child or old age man. Whenever people get boar from their routine work or exhaust from office work they want break and through the entertainment they get rid of it. People of different ages entertain themselves according to their choice like; children like to play in park, video video games, watch cartoon serials on TV ,Youth like to watch movie and go to to discotheques and old age people mostly like to read books and watch TV. Actually entertainment bestows relaxation to people.
Types of entertainment industry
2
LIVE ENTERTAINMENT ENTERTAINMENT SEGMENTATION OF THE LIVE ENTERTAINMENT INDUSTRY SUBSEGMENT
GENRE • • •
Corporate
• • • • •
Facilitative/Competitive
• • • • •
Arts
• • • •
Product launches Promotions Trainings/meets Annual parties Exhibitions Trade fairs Celeb management Awards Contests Search Beauty pageants Theater Music Dance Circus Magic Shows Sporting events
Sports
•
• •
Govt. sponsored Corporate sponsored
Birthday parties Weddings General parties
Exhibition xhibition Entertainment Industry E It is a part of live entertainment industry • • • • •
• • • • •
•
• • • • • • • •
• • •
•
Personal
•
•
•
Festivals
EXAMPLES
Amusement park Funfairs Museum Trade shows Zoo 3
Ad Asia Bacardi Motivation seminar Christmas party Auto expo Lakme fashion week Manikchand film fair awards Femina Miss India Channel V pop stars Plays English, Hindi etc. Discotheque Samrat Circus Chhota jadugar World cup cricket Grand Slam tournament Goa carnival Kumbh Fair Rajasthan desert festival
Mass media industry •
Film Film studios o Movie theaters Broadcasting o Television o Radio Theme parks Discotheques o
•
• •
Electronic Elec tronic entertainment industry • •
Computer games Videos games
TRENDS OVER TIME Things always change with time and entertainment industry is an example of it. Though 50 year back and today, Movies Movies were and are the most favorite mode of entertainment, it has gone through many changes in-between; Black-n-white to color movie, animated movies, 3-D movies etc. it means impact of technology and globalization are main causes of the changing trends in entertainment industry. As we know according to Indian mythological stories God also enjoy entertainment, Indra the king of Gods having all kinds of entertainment in his courts. Historical kings Akbar the great mughal king and Krishna Deva Raya of Vijaynagar empire were known to have many famous musicians, magicians, poets in their courts. During the olden days, folks used to entertain themselves by street plays and snake charming. But entertainment today has changed from its halcyon days. In today’s age, people simply do not have time or luxury to go through long sessions of entertainment, be it viewing a cinema or witnessing a cricket match. Cricket has also introduced 20-20 cricket for more entertainment in less time. The popularity of football and basketball shows that people can have one hour of rapid and engrossing entertainment.
4
CHANGING IN ENTERTAINMENT ENTERTAINMENT INDUSTRIES
Cricket has introduced 20-20 cricket Black-n-white films have become Colored, animated movies, 3-D movies Circus industry is on the verge of collapse; At present, there are only ten Indian circuses still active whereas in the first half of the 20 th century, there were as many as 50 circuses touring the country. Small parks have changed into amusement parks like; Disney land, Appu Ghar, Essel world etc. Radio service- it is a one of the oldest way of entertainment. Few decades earlier there was the only one or two radio channels with few hours service like; AIR[All India Radio] but now there are more than 50 radio channels with 24*7 service like; Radio mirchi, Big FM, Radio citi etc. These days Radio is the most famous and more using entertainment service in India.
IT Companies Entrance In the recent news we have listen Infosys has tied up with Bharti Airtel for DTH service. Infosys is not only IT company who is doing it there are many IT companies are tying with Telecom, Media and Sport companies.
Infosys has a partnership with Bharti Airtel for DTH Microsoft is powering Reliance Communication IPTV. Cisco has entered into a deal with Airtel for IPTV. July Systems powers Network 18’s cricketnext.com for mobile platform TCS has an alliance with TataSky Satyam is a Partner for FIFA World Cup.
INDIAN MARKET SIZE As discussed earlier Indian media and entertainment industry is one of the fastest growing industries in the country. The M&E industry, which has various segments such as film, television, advertising, print media and music among others, is set to enter a golden era. According to a report jointly published by the federation of Indian chambers of commerce and industry [FICCI] and audit firm pricewaterhousecoopers, the Indian
5
M&E industry is expected to grow at a compound annual growth rate [CAGR] of 18 percent to reach US$ 23.81 billion by 2012.
In 2007, the estimated size of the industry was US$12.45 billion, up from US$ 9.69 billion in 2006. The advertising industry recorded a growth of 22 percent in 2007 over 2006 to reach US$ 4.75 billion in 2007, up from US$ 3.56 billion in 2006. The sector contributed 38 percent of the industry’s revenues. For 2007, the report pegged the size of the TV industry at US$ 5.48 billion, print media at US$3.62 billion, film entertainment at US$ 2.33 billion and radio at US$ 150.52 million. Foreign investments in the M&E industry reached a record high of US$ 211 million in 2007 against US$89.18 million in 2006.
TELEVISION TELEVISION The television industry in India is currently at its prime, contributing the largest share in the total media and entertainment industry. According to the PWC report, the television industry was worth US$ 5.48 billion in 2007, recording a growth of 18 percent over 2006. It is further likely to grow by 22 percent over the next five years and be worth US$ 12.34 billion by 2012.
MUSIC The Indian music industry now is not only based on film music the non-film music is also becoming popular. The ample scope in music industry is attracting the private music bands, regional singer for releasing the own music albums. Panjabi music is the most famous regional language music industry. According to the PWC study, the music industry is likely to grow by 2 percent over the next five years and will be a US$ 164.56 million industry by 2012. Significantly, the share of digital music is likely to increase. A recent study by the digital music company, Soundbuzz that has been done with PWC and international federation of phonographic industries has found out that by the year 2009, India will become the second country in the world, after south korea, where digital music sales will surpass the sales of music in traditional formats such as cassettes and compact discs. Digital music sales are expected to account for 88 percent of the total music industry revenue in India by 2009, according to the study. 6
RADIO The cheapest and oldest form of entertainment, reaching 99 percent of the population, this segment is likely to see many dynamic changes. According to the PWC study, revenues from radio are likely to grow at a CAGR of 24 percent over the next five years and the industry will grow from US$ 150.52 million in 2007 to US$ 370.22 million in 2012. Private FM radio has emerged as the fastest growing segment in the media, notching up an average 30 percent growth in advertising revenues, compared to the industry’s average of 18 percent, according to ACNielsen’s Radio Audience Measurement (RAM) service. Moreover, it is expected to increase to US$ 218.49 million over the next two years from US$ 133.52 million today.
ADVERTISING According to the PWC report, advertising, which contributed US$ 4.75 billion or 38 percent to the revenues generated by the media and entertainment industry, grew 22 percent year-on-year in 2007. According to the latest projections by Media partners Asia(MPA), the CAGR of India’s advertising industry between 2008 and 2013 will be 12.8 percent.
FILM The Indian film industry, with over 3 billion admissions per annum,(3.6 billion tickets were sold in 2006 as per an A T Kearney report) is the largest in the world, in terms of number of films produced per year. The industry, which was worth US$ 2.33 billion in 2007, is projected to increase to US$ 3.61 billion by 2012, at a CAGR of 13 percent, according to the PWC report. The opening of the film industry to foreign investment coupled with the granting of industry status to this segment has had a favorable impact, leading to many global production units entering the country. For example, Walt Disney has partnered with Yash Raj Films to make animated movies, the warner Group is funding the Sippys’ film projects, Viacom has a joint venture with the TV 18 group to form Viacom-18.
MULTIPLEXES The nation’s multiplex industry is all set for boom. According to an estimate, the number of multiplex screens in India is expected to touch 5,000 by 2012, constituting around 40 percent of the total cinema screens. 7
As of December 2007, there were 1,350 screens. In fact, currently the Indian market is highly underserved when compared to the west, India has less than 13 screens per million of the population, against 117 in the US, 52 in Italy and 30 in the UK. DLF, a leading real estate player in the country, plans to invest US$ 257.08 million in expanding its multiplex business by adding around 500 screens in the next 4 to 5 years. Adlabs cinemas has drawn up a plan to build 12 megaplexes in cities like Mohali, Lucknow, Hyderabad and Delhi. Multiplex chain PVR cinemas, is also planning to add over 250 screens across India, Staggered over a period of three years from 2008-2010, with a total investment outlay of around US$ 82.27 million.
OTHERS Print media, animation and gaming are also likely to see interesting growth rates. According to the PWC study, print media is projected to grow at a CAGR of 14 percent from US$ 3.06 billion to US$ 5.77 billion by 2012. At the same time, the Indian gaming market is likely to grow 25 percent from US$ 267.35 million to US$ 822.69 million. The Indian animation industry, currently estimated at US$ 460 million, is expected to grow at a CAGR of 27 percent to touch US$ 1.163 million by 2012 according to a report titled ‘Indian Animation and Gaming 2008’, jointly prepared by NASSCOM and Ernst & young. The expected CAGR of various segments of the Media and Entertainment Entertainment industry in India till the year 2010 is as follows:
Print Media, 12% 12% Film Industry, 18% 18%
Radio, 30%
Television, 22%
Music, 2%
8
GLOBAL ENTERTAINMENT MARKET In 2005, the global Media & Entertainment industry is estimated to be US$ 1.41 trillion. The global M&E industry is presently in a good development phase. In the first half of 2006 the M&E industry in the US is Estimated to be US$ 292.51 billion. Europe’s overall M&E revenues in the same period are estimated to be EUR 127.72 billion. The Global Media & Entertainment insight examines the Media & Entertainment industry covering major markets markets like US, UK, Europe, Japan. The global entertainment industry is expected to show an annual growth of 10% in the next 4 years and that growth will be driven by China – movies, theme parks, media, etc. Movies are very popular in China and there are approximately 15 movie studios in China, among the most famous are Shanghai Studio, Beijing studio and Changchun studio.
Hollywood Hollywood the name of world’s biggest film industry established in U.S. Every year 500-600 movies are released like; 590 movies in 2007, 599 in 2006 and 535 in 2005. Approx 2.8 billion tickets are sold every year. Some most popular movies of last year are “Spiderman-3” of Sony production, “Transformer” of Paramount production.
AMUSEMENT PARK There are more than 400 amusement parks in US alone and 300 in Europe. In 2003, Europe’s top ten theme parks had 40 million visitors. The Magic Kingdom at Walt Disney world in Florida, USA, was the most visited amusement park in the world in 2006. The most visited amusement park outside of the US was Tokyo Disneyland. According to the publication Amusement Business, four of the world’s top ten most visited amusement parks are in Asia. One of the top ten parks is in Europe and the remaining top ten most visited parks are in the United States. Amusement parks and attractions in the United States generated $11.5 billion in revenues in 2006.
9
U.S Amusement park Attendance and Revenue history YEAR
ATTENDANCE [in mil million] lion]
REVENUE [in billion us$]
1990
253
5.7
1995
280
7.4
2000
317
9.6
2005
335
11.2
335
11.5
2006 [All fig. are estimated]
Key Players of Entertainment Industry Rajshri Production It is one of the oldest entertainment studio in India, established on August 15, 1947. It is a most trusted brand for quality cinema and family entertainment. Rajshri has produced 51 Hindi films till date. There are 19 branch offices of Rajshri production in all over India. Rajshri has distributed over 1,000 films till date.
Mukta Arts Mukta Arts was started 30 years ago by Mr. Subhas Ghai, the very known Indian filmmaker. The company has produced 20 films till date. The company also controls over 50 multiplexes with 200 screens and 40 single screens in the North of India. These include some of the biggest chains in the country like PVR, Fun Republic and Adlabs. During the financial year 2007-2008, total income of the company was 1,131.66 million INR.
ESSEL WORLD Essel world is India’s largest amusement park situated in Mumbai. It is very popular entertainment center for for child and young crowd. crowd. It is Asia’s largest Theme water park. It sprawled over 64 acres area.
Radio Mirchi Radio Mirchi is a private FM radio stations in India. It is owned by the Entertainment Network India ltd, which is one of the subsidiaries of The Times Group. It is available in more than 33 cities. Radio mirchi is first launched in Indore
10
on October 4, 2001. In the space of 24 months, it made its presence felt in seven cities. Revenue of the company is US$42.5 million with the 45% market share. The company grew 433.6% in the financial year 2006-07.
Balaji Telefilms Balaji telefilms ltd. Is India’s leading small screen production house. It was started in 1994 by the Mr. jeetendra kapoor, Ms. Ekta kapoor and Mrs. Shobah Kapoor. Balaji telefilm entered the Indian market as a content provider for the Indian television industry. Some popular T.V serials of Balaji telefilms are:Kyunki Saas Bhi Kabhi Bahu Thi, Kahani Ghar Ghar ki, Kasamh Se.
ADLABS Adlabs film ltd. A member of the Reliance Anil Dhirubhai Ambani group. It is fastest growing film entertainment company and India’s largest cinema chain with over 390 screens across US, India and Malaysia. It was established in 1975 as processing laboratory primarily catering to the advertising industry and soon entered in film processing laboratory and financing and production of film multiplex business with the name of BIG CINEMAS, Now it is largest cinema chain.
Entertainment industry is a very volatile industry. It keep changing in some time interval. Actually people enjoy the entertainment for removing their stress and getting break from boring daily routine work so though they get same type of entertainment every time then of course they will get boar so player of entertainment industry always try to introduce different. We can take the example of mobile phone. Few years back talking was the only facility in mobile but gradually we got the game, SMS, Radio, MMS and now the way of 3G technology we can use high speed internet and video conferencing facility. As we know that many IT giants are coming in Entertainment industry with establish entertainment service providers so in future we can see rapid growth in industry and as well as mode of entertainment can be increased.
11
BIBILIOGRAPHY BOOKS & Magazine
Entertainment Industry – V. Parth Sarathy Business Today
Websites www.ficci.com www.wikipedia.com www.iaapa.org www.dhdeans.blogspot.com www.ibef.org www.rajshri.com www.muktaarts.com www.esselworld.com www.radiomirchi.com www.balajitelefilms.com www.adlabsfilms.com
12
