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1. Indicus Analytics, An Economics Research Firm
http://indicus.net/Blog/Index.php
Disruptive Technologies may alter the face
of the entertainment industry
The business of entertainment is likely to change dramatically in
India. A large mass market is there in the waiting. It’s up to
entrepreneurs to find the products and services.
This is a speculative piece - Speculation based on observation of
trends over a long period.
I first encountered portable projectors around 1996. It was a
heavy color projector costing Rs 450,000 then. I remember
carrying it to Raipur for a presentation and it was heavy. In those
days it was a huge improvement on the OHP and we thought it
was a boon.
By 1999 a much sleeker and lighter version costing about Rs
250,000 was available in the market. The earlier one had a
yellowish hue, whereas this one had no color distortion. By 2002
the prices of these projectors had come down dramatically. They
were better, had more features, could be hooked on to the DVD
player and cost about Rs 120,000. During 2006 we found even
better ones in the market for about Rs 55,000. A cursory inquiry a
couple of months ago revealed that good one’s are now available
for Rs 32,000
I have often carried these home, hooked them on to the DVD
player and the home theater sound system. The effects have been
amazing. It’s as close to a movie theater as it can possibly get,
with the added advantage of freedom of time for viewing. You
http://www.indicus.net/blog/index.php/consumer_markets/amit/disruptive-
technologies-may-alter-the-face-of-the-entertainment-industry/

2. Indicus Analytics, An Economics Research Firm
http://indicus.net/Blog/Index.php
are no longer a slave of theater timings. Good home theater sound
systems are available these days for as little as Rs 10,000.
Here is my view on what is likely to happen in the next 4-5 years.
The prices will come down to around Rs 20,000 level, which is
the price range at which color TVs took off. Color TV penetration
in India is of the order of 100 million sets and the annual market
is about 12 million and rising. This implies that in the next 5
years we will have a substantial base of home projectors. This is
truly a disruptive technology on one of the most common
entertainment avenues – cinema. It means that retail of Film
DVDs along with theater release is likely to happen. In fact now,
one can actually carry movies on a pen drive!
Projectors are not the only drivers. LCD prices are crashing and
one can look forward to 40″ LCDs at around 20,000 in a few
years.
Films will retail like music. I can see that happening very quickly.
Technology is going to force this change. It also opens up the
avenues for several gaming and other home entertainment
products. I wonder what it means for multiplex owners and
theater owners. It will be interesting times for consumers though.
The business of entertainment is likely to change dramatically in
India. A large mass market is there in the waiting. It’s up to
entrepreneurs to find the products and services.
How large is the market?
Let’s look at middle class categories, those who earn between 3 to
10 lakhs per annum and most closely resemble the mass market
for entertainment products. There are nearly 15 million such
households in urban India alone (there are about 2.3 million urban
Indians households who earn more than 10 lakhs per annum).
Also, if one looks at the age profile of urban India, there are 37
http://www.indicus.net/blog/index.php/consumer_markets/amit/disruptive-
technologies-may-alter-the-face-of-the-entertainment-industry/

3. Indicus Analytics, An Economics Research Firm
http://indicus.net/Blog/Index.php
million people in the top 10 cities of India alone and 28 million in
the top 112 who are between 18 and 45 years of age. That’s a
market full of opportunities.
http://www.indicus.net/blog/index.php/consumer_markets/amit/disruptive-
technologies-may-alter-the-face-of-the-entertainment-industry/