Entertainment As Business


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Entertainment As Business

  1. 1. Entertainment as Business
  2. 2. <ul><li>Films </li></ul><ul><li>TV Broadcasting </li></ul><ul><li>Cable Television </li></ul><ul><li>TV Software </li></ul><ul><li>Music </li></ul><ul><li>Radio </li></ul><ul><li>Live Entertainment </li></ul>Source: Arthur Anderson Report 2001 Industry Segments
  3. 3. Potential of Growth
  4. 4. Industry Size 2000 – Rs 100 Bn 2005- Rs.314 bn
  5. 5. <ul><li> </li></ul>India is ½ of 1% of World Entertainment Industry                                                    
  6. 6. Advertising spend as % of GDP
  7. 7. Average share of print media in total advtg. expenditure is 45%
  8. 8. TV Penetration 40 percent of Indians have access to a TV
  9. 9. Television <ul><li>Size of industry estimated at Rs. 13.8 bn </li></ul><ul><li>Revenue from 43 channels Rs 10.6 bn </li></ul><ul><li>Export of television software Rs. 4.7 mn </li></ul><ul><li>Webcasting of content : NumTv </li></ul>
  10. 10. India has 12,900 cinemas “ India needs 20,000 cinemas” UNESCO Study
  11. 11. Theater admissions in England, Germany and Australia tripled with the multiplex and theater boom and a similar growth could be expected in India with adequate number of multiplexes. 12.9 116.6 Theatres per 1 mn People 77,520 8,580 Population per screen 12,900 31,000 Number of Screens 1000 265.9 Population (in millions) India U.S.A.
  12. 12. The Indian Film Industry <ul><li>Current size in terms of cost Rs. 21.5 billion </li></ul><ul><li>Growth rate 15 percent </li></ul><ul><li>Unorganized sector: Unstructured and lack of diligence. </li></ul><ul><li>Informal sources of finance </li></ul><ul><li>Exhibition infrastructure insufficient. </li></ul><ul><li>Entertainment tax very high </li></ul><ul><li>Institutions wary of investing in the sector </li></ul>
  13. 13. Profile of Movie Revenue
  14. 14. India exported 412 films in 1999. Taal and Kuch Kuch Hota Hain grossed over US$ 8 million in exports. Mission Kashmir has released overseas with 125 prints.
  15. 15. Projection of Film Exports Rs.Bn
  16. 16. Distribution of Revenue (“A” Grade Film) US$ mn
  17. 17. Music <ul><li>Present size: Rs. 12.5 billion </li></ul><ul><li>Genres of music: New hindi film, old hindi film, regional, Indipop, International, classical and devotional. </li></ul><ul><li>Structure: Dominance of Hindi film music, Capital Intensive structure and genre focus </li></ul><ul><li>Consolidation has taken place from 25 odd companies to 10 companies </li></ul>
  18. 18. Realizing the Dream <ul><li>Film Industry is the driving force behind Indian entertainment </li></ul><ul><li>Music, TV, Shows rely substantially on Indian cinema for content </li></ul>
  19. 19. Non recognition as an industry with all its ramifications Highest Entertainment tax in the world (up to 110%) Rampant Piracy Villains of the Piece                                            
  20. 20. Developments so far.. <ul><li>Announcement: Film sector declared an industry under the IDBI Act </li></ul><ul><li>Public Issues by companies: Mukta Arts, Zee </li></ul><ul><li>Financial institutions join the movement: IDBI </li></ul><ul><li>Insurance enters: United India Insurance </li></ul><ul><li>15 films in 2001 </li></ul>                            
  21. 21. <ul><li>Completion bonds debut: Film Finance, Inc to start operations in India this year </li></ul><ul><li>Multiplexes boom: More than 25 new multiplexes to be ready by 2003 </li></ul><ul><li>UP, Maharashtra, Gujarat and others declare investment friendly multiplex policy </li></ul><ul><li>FICCI and CII both have active entertainment cells </li></ul><ul><li>Crackdown on underworld finance </li></ul>
  22. 22. What More? <ul><li>Multiplex policy must be adopted by the </li></ul><ul><li> other states </li></ul><ul><li>Rationalization of entertainment tax </li></ul><ul><li>More intensive curb on Piracy </li></ul><ul><li>Film Exports incentives to be increased </li></ul><ul><li>Development of India as an animation hub </li></ul><ul><li>Other banks to take the lead from IDBI </li></ul><ul><li>Venture capitalists and Investment bankers to enter the fray </li></ul><ul><li>Recognition of entertainment on the same platform as IT. </li></ul>                                                                                    
  23. 23. THANX!