Entertainment & Media
An Unfolding Opportunity
July 2005
Entertainment & Media
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
July 2005
Entertainment & Media
Population
Over 1 bn
States/UTs
35
Geographical Area
3.3 mn sq kms
Languages recognised
22
Business language
English
Per Capita Income**
US$ 534
GDP**
US$ 650 bn
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
July 2005
India - Fast pace Growth
 Largest democracy
 4th largest economy by PPP index
 6th largest energy consumer
 ForEx reserves skyrocket from US$ 42 bn (2001) to
US$ 133 bn (February, 2005)
 GDP growth to continue between 6-8%
 3rd largest economy by 2050: Goldman Sachs
 Leading in IT & BPO
 Oil & Gas and Biotechnology sunrise industries
July 2005
India - Leading the world
 Hero Honda - largest manufacturer of motorcycles
 Moser Baer - among the top three media manufacturers
in the world
 Pharmaceutical Industry - 4th largest in world
 Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
 100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
July 2005
Entertainment & Media
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
July 2005
The Entertainment & Media Industry
One of the fastest growing sectors of the
Indian economy
Size
US$6900 mn
Estimated growth rate
over next 5 years
14% CAGR
July 2005
Key Institutional Framework
Ministry of Information & Broadcasting
Broadcasting
Wing
Films Wing
Directorate of Film
Festivals
Ø National Film
Development Corpn
Ø Central Board of Film
Certification
Press
Ø Prasar Bharti
Council of
India
o
AIR
o
Doordarshan
July 2005
Information Wing
Press
Information
Bureau
Constituents
In d ia n E n te rta in m e n t & M e d ia C o n s titu en ts -2 0 0 4
F ilm s
18%
R a d io
1%
TV
4 1%
P rin t
38%
M u s ic
2%
July 2005
The Changing Face
E&M Sector 
Films
Television
Content 
Commercial (Hindi &
Regional) Cinema
Art Movies
Cartoon Movies
Commissioned
Programs
News & Current
Affairs
Delivery 
Cinema Halls
Home Videos
(Video Cassettes,
VCDs, DVDs,)
Mobile
Phones
Cable
Terrestrial
DTH
Radio
Commissioned
Programs
News & Current
Affairs
Public
Broadcaster
FM Channels
Media
News & Current
Affairs
Fiction/Non
Fiction Articles
Internet
Music
Film Music
Private Albums
Newspapers
Magazines
Books
---------- Straight line denotes Traditional Delivery Mechanisms
Source:PwC Analysis
July 2005
- - - - Dotted line denotes Converged Delivery Mechanisms
Cassettes
CDs
Filmed Entertainment
Revenue Growth of Indian Film Industry
3,500
USD
Mn
2,872
3,000
2,434
2,500
2,063
1,748
2,000
1,500
1,256
1,482
1,000
500
2004
2005
2006
2007
2008
2009
Source: Industry estimates & PwC Analysis
Current Size
US$ 1256 mn
Estimated growth rate over next 5 years
18% CAGR
July 2005
Filmed Entertainment-Key Growth Drivers
Emergence of crossover films
High Return on investment
 immense
international appeal
 low costs of production
In 2004 alone, estimated five Bollywood releases generated
more than US$ 2 million each in the UK and US.
July 2005
Filmed Entertainment-Key Growth Drivers
 Increasing importance of regional cinema
International cinema dubbed in Indian languages
Growth of multiplexes
Growth in cinema advertising
Merchandising/Promotional
Material Revenues
July 2005
Television
 India
Third largest television
market in the world
 Estimated growth rate of
TV industry on an overall
basis for next 5 years
18% CAGR
 Total No. of TV households
over 119 mn
 Total No. of TV channels over 350
July 2005
Television Industry- Revenues
TV Industry Revenue Break-up
7,000
6,556
6,000
5,330
USD Million
5,000
Total TV
4,421
4,000
4,201
3,747
3,000
2,860
2,000
1,000
2004
3,237
2,668
2,223
1,667
1,067
1,900
1,195
1,362
1,566
127
142
162
188
2005
2006
Source: Industry estimates & PwC Analysis
July 2005
3,308
2007
2008
1,801
221
2009
2,089
266
TV
Subscription
TV
Advertising
TV
Softw are
Television-Key Growth Drivers
 Pay Revenues - primary growth driver for
subscription revenues
Growth in number of TV households
Low penetration of multi-channel colour TVs in rural
areas
Growth in the television software segment
July 2005
Music Industry
Revenues of Indian Music Industry
173
175
168
US$ million
170
163
165
158
160
155
150
153
149
145
140
135
2004E
2005F
Source: Industry estimates & PwC Analysis
July 2005
2006F
2007F
2008F
2009F
F- Forecast;E-Estimate
Music Industry- Key Growth Drivers
 Growth in non-film albums and music videos
Talent Nurturing
FM radio synergies
Shortening shelf life of music
Organised music retailing
Unbundling of the album concept
Product expansion
Overseas potential
July 2005
Radio Industry
Radio Industry Revenues
160
144
US$ million
140
113
120
100
90
80
53
60
61
72
40
20
0
2004E
2005F
Source: Industry estimates & PwC Analysis
July 2005
2006F
2007F
2008F
2009F
F- Forecast;E-Estimate
Radio Industry-Key Growth Drivers
 Local Advertising
Lower share of Adspend
Satellite Radio
Community Radio
July 2005
Print Media
US$ million
Total Print Media Industry - Revenues
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
315
254
269
285
2,524
2,840
3,005
3,171
2,369
2,680
2004E
2005F
2006F
2007F
2008F
2009F
238
Newspaper
Source: Industry Estimates & PwC Analysis
July 2005
300
Magazine
F- Forecast;E-Estimate
Newspaper Industry
Total Newspaper Industry
3500
US$ million
3000
2500
1500
1,763
1,848
1,443
1,520
1,599
1,680
926
1,004
1,081
1,160
1,242
1,323
2004E
2005F
2006F
2007F
2008F
2009F
2000
1000
500
0
Advertisements
Source: Industry Estimates & PwC Analysis
July 2005
Subscriptions
F- Forecast;E-Estimate
Magazine Industry
Total Magazine Industry
350
US$ million
300
250
200
77
79
73
68
71
75
196
210
223
236
170
183
2004E
2005F
2006F
2007F
2008F
2009F
150
100
50
0
Advertising
Source: Industry Estimates & PwC Analysis
July 2005
Subscriptions
F- Forecast;E-Estimate
Newspaper and Magazine Publishing Industry
Key Growth Drivers
 Booming Indian economy
Content
Government initiatives
Emerging Digital Technologies
July 2005
Entertainment & Media
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
July 2005
Indian Film Industry
Players
Production
Distribution
Zee Telefilms
a
a
a
Adlabs Films
a
a
a
AVM Productions
a
a
a
Mukta Arts
a
a
X
Rajshri Productions
a
a
X
Shringar Group
X
a
a
PVR Cinemas
X
a
a
Pritish Nandy
Communications
a
a
X
July 2005
a
Present
X
Not present
Exhibition
Indian Television Industry
Key Players
CNBC-TV 18
Discovery
ESPN Star Sports
Hathway Cable
MTV India
July 2005
STAR India
TEN Sports India
Walt Disney
Turner International
Indian Television Industry
Key Players
Doordarshan
Balaji Telefilms
Eenadu TV
NDTV
Nimbus
Padmalaya
July 2005
Sahara India
Sony Entertainment
Sun Television
UTV Software
Zee Telefilms Limited
Indian Music Industry
Key Players
 Universal Music India
 Saregama India (HMV)
 Venus Records
 Sony Music Entertainment
 BMG Crescendo
 Virgin Records
Magnasound
July 2005
Radio
All India Radio (AIR)
• Planned, developed & operated by Ministry of I & B.
• Network of 214 broadcasting centres
• covering 24 languages
• covering 91.37% of the area
• serving 99.13% of the Indian populace
Private FM Broadcasters
• Entertainment Network India
• Radio Today
• Radio City
• Radio Mid – Day West
• India FM Radio
July 2005
Print Media
Key Players
Newspapers
Times of India
Magazines
India Today
Hindustan Times
Readers Digest
The Hindu
Outlook
The Telegraph
Femina
Indian Express
Filmfare
Mid-Day
Stardust
July 2005
Entertainment & Media
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
July 2005
Cable TV Households- untapped potential
Low Cable penetration
levels indicate huge
untapped potential
Rural areas to spur
growth
Total No. of Households
200 Million
TV Households
119 Million
Cable TV Households
50 Million
Source: Industry Estimates & PwC Research
July 2005
Television

Television Subscription
Current size
Television Advertising
Current size
US$ 1067 mn
T V A d v e rtis in g - re v e n u e s
2500
2089
1801
2000
US$ m illion

US$ 1667 mn
1566
1362
1500
1067
1195
1000
500
0
2004E
2005F
2006F
2007F
20 0 8 F
Source: Industry Estimates & PwC Research
July 2005
2009F
Growth of multiplexes
 Platform to screen movies
appealing to niche audience
 Have brought back Indian film
viewers to movie halls
 Smaller screening options
July 2005
Entertainment & Media
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
July 2005
The India Advantage
 Expanding Indian Economy
 Strong job creation in new economy sectors
 Demographic Advantage – 30 to 40 million people joining
middle class every year
 Change in consumer mindset due to global exposure
 Untapped rural potential
July 2005
The Policy Advantage
Key Government Initiatives
 2001
Industry status to Films
 2001
Announcement of DTH guidelines
 2004
Announcement of Broadband Policy
 Reduction in import duties
 Move towards Co - production treaties
July 2005
Enforcement efforts against music pirates
1,600,000
Number of Seizures
1,475,632
Number of raids conducted
1000
844
800
400
1,200,000
702
436
338
1,000,000
Units
600
1,400,000
401
308
200
96
West
Zone
East
Zone
400,000
South
Zone
200,000
2003
2004
Source: Indian Music Industry
July 2005
800,000
600,000
171
0
North
Zone
884,418
351,790
221,002
0
Music
Cassettes
CDs
FDI Policy
 Advertising & Film Sector
Upto 100% on automatic route
 Print Media
- Upto 74% in Indian entities publishing scientific/ technical
& speciality magazines/periodicals/journals
- Upto 26% in Indian entities publishing news & current
affairs newspapers & periodicals
 Broadcasting Sector
No restriction on foreign equity in proposals related to
software production, marketing of TV rights, air times,
advertisements etc.
July 2005
Entertainment & Media
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
July 2005
Contact in India
Office of the Minister for Information & Broadcasting
Shastri Bhawan
New Delhi 110 001
Tel
Fax
0091 11 2338 4782/2338 4340
0091 11 2378 2118
July 2005
Contact in India
Secretary, Ministry for Information & Broadcasting
R.No. 655, A Wing, Shastri Bhawan
New Delhi 110 001
Tel
Fax
0091 11 2338 2639
0091 11 2338 3513
July 2005
Contact in India
Confederation of Indian Industry (CII)
The Mantosh Sondhi Centre
23, Institutional Area
Lodi Road
New Delhi 110003
India
Tel: + 91 11 2462 9994-97
Fax:+ 91 112461 5693
Email: c.banerjee@ciionline.org
July 2005