Entertainment march-220313
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sectoral report - entertainment by IBEF

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Entertainment march-220313 Entertainment march-220313 Presentation Transcript

  • 11 Entertainment For updated information, please visit www.ibef.org MARCH 2013
  • 22 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: UTV, SUN TV  Opportunities  Useful information For updated information, please visit www.ibef.org Entertainment MARCH 2013
  • 33 Entertainment For updated information, please visit www.ibef.org ADVANTAGE INDIA Advantage India Advantage India • Rising incomes and evolving lifestyles have led to higher demand for aspirational products and services • Higher penetration and a rapidly increasing young population will provide further boost to demand • Industry is set to expand at a CAGR of 15 per cent over 2011- 2016, one of the highest rates globally • Television and AGV segments expected to lead industry growth; opportunities in digital technologies as well • Higher FDI inflows • 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 profitabilit and ease of institutional finance • Increasing liberalisation and tariff relaxation Market Size: USD30.4 billion 2016E Market Size: USD15.2 billion 2011 Source: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition, CAGR - Compound Annual Growth Rate, FDI - Foreign Direct Investment, E - Estimate Growing demand Opportunities Higher investments Policy support MARCH 2013
  • 44 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: UTV, SUN TV  Opportunities  Useful information For updated information, please visit www.ibef.org Entertainment MARCH 2013
  • 55For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Entertainment Entertainment Television Print Film AGVRadio Music Others Source:: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects The sector is split into seven segments MARCH 2013
  • 66For updated information, please visit www.ibef.org The Indian entertainment industry is growing rapidly … (1/2) → The total market size of industry expanded to USD15.2 billion in 2011 from USD9.2 billion in 2006, a CAGR of 10.6 per cent → The industry recorded one of the highest growths in the world in 2010 (11.2 per cent); in 2011 growth picked up even further to touch 12.6 per cent Market size (USD billion) Source:: KPMG report 2012, Aranca Research MARKET OVERVIEW AND TRENDS Entertainment Notes: CAGR - Compound Annual Growth Rate 9.2 10.7 11.8 12.1 13.5 15.2 2006 2007 2008 2009 2010 2011 CAGR 10.6 % MARCH 2013
  • 77For updated information, please visit www.ibef.org The Indian entertainment industry is growing rapidly … (2/2) → During 2006-11, television revenues expanded at a CAGR of 11.4 per cent to USD6.9 billion → Advertising revenue growth has been behind the consistent rapid growth of the television industry → Over the same period, revenues in the print segment expanded to USD4.4 billion, a CAGR of 10.0 per cent → The fastest growth during this period was however in the AGV segment; it’s CAGR was 16.6 per cent Size of major industry segments (USD billion) Source:: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX; VFX - Visual Effects MARKET OVERVIEW AND TRENDS Entertainment 0.3 1.8 2.7 4 0.6 1.9 4.4 6.9 0 2 4 6 8 AGV Film Print Television 2011 2006 MARCH 2013
  • 88For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Entertainment Segmental composition of entertainment (2011) Source: KPMG report 2012, Aranca Research Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects 45.2% 28.7% 12.8% 4.3% 1.6% 1.2% 6.3% Television Print Film AGV Radio Music Others TV has the highest share in the sector; AGV is one of the fastest growing → Total market size in 2011 was USD15.2 billion → The entertainment industry continues to be dominated by television, print and films; together they have a 86.7 per cent market share → AGV has emerged as one of the fastest growing segments with revenues growing by about 31 per cent during 2011 MARCH 2013
  • 99For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Company Business description Star India Pvt Ltd • Fully owned subsidiary of News Corporation • Portfolio includes 35 channels in seven languages across various categories such as soaps, reality, news and films • Also manages a portfolio of business ventures including DTH operator Tata Sky, cable system Hathway, channel distributor STAR Den, news channel operator MCCS, the film production and distribution business Fox STAR Studios India and STAR CJ Home Shopping Zee Entertainment Enterprises Ltd • Fully owned subsidiary of Essel Group and first listed media company in India • One of the largest producers and aggregators of Hindi programming in the world • An estimated reach of more than 670 million viewers across 168 countries • Pioneer of television entertainment industry in India; launched Zee TV - the country’s first Hindi satellite channel • Range of businesses across the value chain in the M&E industry Multi Screen Media Pvt Ltd • Fully owned subsidiary of Sony Pictures Entertainment • Comprises of Sony Entertainment Television (SET) and SAB, leading Hindi general entertainment television channels; MAX, a movies and special events channel; and PIX, a channel that airs Hollywood movies • Its programming spans across various genres including drama, reality, comedy, horror, Bollywood and live events Entertainment Source: Company Websites, Business Week, KPMG report 2012 Aranca Research Notes: M&E - Media and Entertainment Key players in the entertainment industry - Television MARCH 2013
  • 1010For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Company Business description Bennett, Coleman and Co Ltd • Largest media conglomerate in India • Publishes world’s most widely circulated English broadsheet daily ‘The Times of India’ and second most widely circulated financial daily ‘Economic Times’ • Other prominent publications include magazines such as Zigwheels, Filmfare, Femina and Top Gear and Hindi dailies such as Navbharat Times and Sandhya Times • The group has also diversified into radio and television business HT Media Ltd • Hindustan Times is the second most widely read newspaper with 3.7 million readers in India. • Other prominent publications include the business daily Mint and the Hindi daily Hindustan • The group has also forayed into many adjacent businesses such as print and digital services, internet, radio, and events and marketing solutions • The company’s job portal www.shine.com has over 7 million registrations Living Media India Ltd • India Today and Readers Digest are among India’s most circulated magazines • Other prominent magazine publications include Business Today, Cosmopolitan, Time, Golf Digest, Design Today, Money Today and The Chartered Accountant • The group has interests in various other businesses such as radio, events, printing, music, television, education and publishing Entertainment Source: Company Websites, The Times of India, Aranca Research Notes: CAGR - Compound Annual Growth Rate, FY - Financial Year Key players in the entertainment industry - Print MARCH 2013
  • 1111For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Company Business description Yash Raj Films Studios • The only privately owned film studio in India • Apart from film production, the company has also expanded into distribution of films and music, home entertainment, production of television software, ad films, documentaries and private label music production • The company launched a youth films studio Y-Films in 2011 to connect with the large young population of the country Eros International Media Ltd • Strong distribution network spanning across 50 countries and over 27 dubbed foreign languages • One of the largest content owners in the industry having a film library of over 2600 films, thus ensuring stable, recurring cash flows • The company is diversifying into Marathi, Punjabi, Tamil and other regional language films to leverage upon the growing demand for regional cinema Red Chillies Entertainments Pvt Ltd • Founded in 2002 as a film production house, the company has branched into TV shows and advertisement, visual effects and multi-media production equipment leasing • Its latest venture 'Ra.one‘ is Bollywood's most expensive movie and very first Sci-fi movie • It also owns the Kolkata Knight Riders cricket franchise in the Indian Premier League Entertainment Source: Company Websites, Business Week, Aranca Research Key players in the entertainment industry - Film MARCH 2013
  • 1212For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Company Business description Music Bharti • A wholly owned subsidiary of Bharti Airtel • The largest music company in terms of revenues • Provides mobile-based value-added music services (VAS) such as hello tunes, call back tunes, music on demand, Mirchi mobile and Airtel radio Saregama India Ltd • The company owns the largest music archives in India, one of the largest in the world • It uses the music labels Saregama, RPG Music and HMV • The company is making efforts to digitise its catalogue to make inroads into the digital music market and counter declining physical music sales Super Cassettes Industries Ltd • The company owns the rights to over 2,000 video and 35,000 audio titles, comprising of nearly 24,000 hours of music • The company has diversified into film production, consumer electronics and mobile phones manufacture Tips Industries Ltd • The company owns 3,500 titles of which a minimum of 25 have been sold over a million copies, with another 10 selling over 10 million copies • Since 1981, Tips has the highest number of gold and platinum discs to their credit in India • Tips also holds soundtrack copyrights of over 50 Hindi movies and has also ventured into film production Entertainment Source: Company Websites, Business Week, Aranca Research Notes: VAS - Value Added Services Key players in the entertainment industry - Music MARCH 2013
  • 1313For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Television • Television penetration in India is at about 60 per cent • The television industry has been aided by strong growth in advertising • Television subscription accounts for around 65 percent of revenues in 2011 whereas advertising accounted for the rest • The share of subscription to the total revenue is expected to increase to 69 per cent by 2016 Print • Unbundling of products to increase profitability • Increasing income levels and evolving lifestyles have led to robust growth in niche magazines segment • Increasing literacy levels leading to a rise in the readership base • Rising circulation of English, Hindi as well as regional language dailies Film • Growth to be fuelled by multiplex chains, increasing footfalls of consumers and higher quality content • Increasing share of Hollywood content in the Indian box office • 3D cinema is driving the growth of digital screens in the country • The Indian film industry is largest producer of films globally with 400 production houses and corporate houses involved in film production Source: KPMG report 2012, Economic Times, Aranca Research Notes: DTH - Direct to Home, 3D - Three Dimension Entertainment Notable trends in the entertainment industry … (1/2) MARCH 2013
  • 1414For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Animation, Gaming and VFX (AGV) • Growing focus on the ‘kids genre’ and rise in dedicated channels for them • Increase in animation movies in theatres and use of animation and VFX in TV advertising • Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian players • Content localisation by Indiagames (by launching T20fever.com) and by Zapak (by launching ICC World Cup 2011 games) Radio • Increasing FM enabled radio phones, mobiles and car music systems • During 2010, there were a total of 245 channels operating across India • Government has introduced favorable guidelines for expansion of the third phase of FM radio broadcasting services, which will bring 294 towns and 839 stations under FM coverage • Earlier only educational institutions were permitted to set up a community radio; in 2008 liberalisation of policy on community radio took place and currently 29 community radio stations are operational in the country Entertainment Notable trends in the entertainment industry … (2/3) Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012 Economic Times, Aranca Research Notes: AGV - Animation, Gaming and VFX, 3D - Three Dimension, VFX - Visual Effects, FM - Frequency Modulation MARCH 2013
  • 1515For updated information, please visit www.ibef.org MARKET OVERVIEW AND TRENDS Music • 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 Entertainment Notable trends in the entertainment industry … (3/3) Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012 Economic Times, Aranca Research Notes: AGV - Animation, Gaming and VFX, 3D - Three Dimension, VFX - Visual Effects, FM - Frequency Modulation MARCH 2013
  • 1616 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: UTV, SUN TV  Opportunities  Useful information For updated information, please visit www.ibef.org Entertainment MARCH 2013
  • 1717For updated information, please visit www.ibef.org GROWTH DRIVERS Strong demand and policy support driving investments Entertainment Strong government support Growing demand Inviting Resulting in Growing demand Increasing investmentsPolicy support Higher real incomes and changing lifestyles Falling prices, increasing penetration Growing, young consumer base Policy sops, favourable FDI climate Measures to improve profitability across segments Increasing liberalisation, tariff relaxation Higher FDI inflows Increasing M&A activity Increasing participation of big players Source: ICRA, PwC, Business Standard, Business Today, Aranca Research Notes: M&A - Merger and Acquisition, FDI - Foreign Direct Investment MARCH 2013
  • 1818For updated information, please visit www.ibef.org → Incomes have been rising at a brisk pace in India and will continue to do so given the country’s strong economic growth prospects; nominal per-capita income is estimated (IMF) to have recorded a CAGR of 12.5 per cent over 2001-11 → Rising incomes, with its positive impact on the consumer base, will be the key growth driver for the entertainment industry (across the country) → As the proportion of ‘working age population’ in total population increases, per-capita income and GDP are expected to grow higher Entertainment GROWTH DRIVERS Rising per-capita income in India Source: IMF, Aranca Research -5% 0% 5% 10% 15% 20% 25% 30% 0 500 1,000 1,500 2,000 2,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F Per Capita income, USD, LHS Annual growth rate Multiple factors will drive growth in demand … (1/2) MARCH 2013
  • 1919For updated information, please visit www.ibef.org → 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 Changing income dynamics over the years Source: McKinsey Quarterly Report, Aranca Research Entertainment GROWTH DRIVERS 0 10 20 30 40 50 60 70 2005 2010 2015 2020 2025 Deprived Globals Aspirers Strivers Seekers Seekers: annual income INR200,000- 500,000 Globals: annual income > INR1000,000 Strivers: annual income INR500,000-1000,000 Aspirers: annual income INR90,000-200,000 Deprived: annual income < INR90,000 Million households Multiple factors will drive growth in demand … (2/2) MARCH 2013
  • 2020For updated information, please visit www.ibef.org Entertainment Television • Digitisation of the cable distribution sector to attract greater institutional funding, improve profitability and help players improve their value chain • FDI limit increased from 49 per cent to 74 per cent for broadcast carriage service providers who upgrade to digital and addressable environments • No restriction on foreign investment for uplinking and downlinking of TV channels other than news and current affairs Film • 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 upto 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 Radio • FDI limit in radio increased to 26 per cent from 20 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 licence fees on the basis of ‘net income’ so as to provide relief to loss making radio players Source: ICRA, PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research Notes: GST - Goods and Services Tax, FDI - Foreign Direct Investment GROWTH DRIVERS Policy support aiding sector growth… (1/2) MARCH 2013
  • 2121For updated information, please visit www.ibef.org Entertainment Print • FDI/NRI investment upto 26 per cent in an Indian firm dealing with publication of newspaper and periodicals • FDI/NRI investment upto 26 per cent in publications of Indian editions of foreign magazines • FDI/NRI investment upto 26 per cent in publications of scientific and technical magazines/ specialty journals/ periodicals Animation, Gaming and VFX (AGV) • 100 per cent FDI allowed in the sector through automatic route provided it is in compliance with Reserve Bank of India guidelines Music • 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; steps have been taken to block illegal music websites • Adoption of revenue sharing model by Copyright Board requiring FM radio companies to share 2 per cent of their net advertising revenues with music companies Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research Notes: GST - Goods and Services Tax, FDI - Foreign Direct Investment, NRI - Non Resident Indian GROWTH DRIVERS Policy support aiding sector growth… (2/2) MARCH 2013
  • 2222For updated information, please visit www.ibef.org → Consolidation will be the major route to grow inorganically for entertainment companies in order to expand their portfolios and enter into new regions → A few big deals have come about, the most notable ones being Walt Disney-UTV and TV18-ETV (together amounting to around USD700 million) Source: Company ‘s news, KPMG report 2011, Aranca Research Entertainment GROWTH DRIVERS Mergers and Acquisitions (M&A) deals during 2011-2012 Acquirer Target Deal date Deal value (USD million) TV18 Eenadu Group Jan 2012 395 Walt Disney UTV Feb-2012 300 Educational Trustee Company Metronation Chennai Television Mar-2012 3.2 Blackstone Jagran Media Network Jul-2011 46.9 Samara Capital Newswire18 Dec-2012 18.8 Increasing investments in the sector - key deals and FDI inflows … (1/2) MARCH 2013
  • 2323For updated information, please visit www.ibef.org → FDI inflows into the entertainment sector between April 2000 and March 2012 stood at USD2.9 billion → By March 2012, the share of FDI in ‘Information and Broadcasting’ was 1.8 per cent of total FDI inflows into the country → Demand growth, supply advantages, and policy support have been the key drivers in attracting FDI Source: DIPP, Aranca Research Notes: DIPP - Department of Industrial Policy and Promotion Entertainment GROWTH DRIVERS Cumulative FDI inflows into Information and Broadcasting from April 2000 0.6 1.3 1.8 2.2 2.9 FY08 FY09 FY10 FY11 FY12 CAGR 48.0% Increasing investments in the sector - key deals and FDI inflows … (2/2) MARCH 2013
  • 2424 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: UTV, SUN TV  Opportunities  Useful information For updated information, please visit www.ibef.org Entertainment MARCH 2013
  • 2525For updated information, please visit www.ibef.org Television content Motion pictures Games content Broadcasting Interactive Started as a content provider for Doordarshan Ventured into internet content creation and aggregation Launched IPO as UTV Software communications Ltd Launched Hungama TV Entertainment SUCCESS STORIES: UTV, SUN TV Disney becomes a majority share holder with a stake of 32.1% Source: Company annual report, Company website, Aranca Research Notes: IPO - Initial Public Offering Deal with Disney to dub its content into Indian languages Acquires Indiagames Ltd, enters gaming software and content Became world’s first company to record over 100 million downloads on Nokia store 1990 1996 2000 2004 2005 2007 2008 2012 UTV - One of the largest media conglomerates MARCH 2013
  • 2626 1985 1993 2000 2003 2005 2007 2008 2012 ‘SUN TV’ is launched with daily three hours of programming Launches SUN Direct to provide Direct-to-Home (DTH) services Launches three pay channels and four ad - free action movie channels For updated information, please visit www.ibef.org Direct to Home Motion pictures Radio Newspaper Magazine Founded as Sumangali Publications Launches a slew of other channels in various South Indian languages Acquires Dinakaran newspaper, Tamil Nadu’s leading daily Starts its first FM Channel ‘Sumangali FM’ Entertainment SUCCESS STORIES: UTV, SUN TV Enters Film Production and Distribution through ‘SUN Pictures’ Source: Company website, Aranca Research Notes: FM - Frequency Modulation Broadcasting SUN TV: The South - Indian behemoth MARCH 2013
  • 2727 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: UTV, SUN TV  Opportunities  Useful information For updated information, please visit www.ibef.org Entertainment MARCH 2013
  • 2828 15.2 17.3 19.7 22.2 25.0 30.4 2011 2012E 2013E 2014E 2015E 2016E For updated information, please visit www.ibef.org OPPORTUNITIES Entertainment → Over 2011-16, the total market size is expected to rise at a CAGR of 14.9 per cent to USD30.4 billion → The next five years will see digital technologies increase their influence across the industry leading to a sea change in consumer behaviour across all segments Source: KPMG report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research Market size (USD billion) CAGR 14.9 % The entertainment industry is slated for rapid growth … (1/2) MARCH 2013
  • 2929For updated information, please visit www.ibef.org OPPORTUNITIES Entertainment → Television will continue to be the lead contributor to overall industry growth; the segment is estimated to expand in size to USD15.3 billion by 2016 (CAGR of 17.3 per cent since 2011) → Animation, Gaming and VFX (AGV) is likely to witness the fastest expansion - a CAGR of 27.2 per cent (2011- 16); its size is set to touch USD2.0 billion in 2016 Source: KPMG report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: AGV - Animation, Gaming and VFX; VFX - Visual Effects Size of major industry segments (USD billion) 0.6 1.9 4.4 6.9 2.0 3.1 6.5 15.3 0 5 10 15 20 AGV Film Print Television 2016 2011 The entertainment industry is slated for rapid growth … (2/2) MARCH 2013
  • 3030For updated information, please visit www.ibef.org OPPORTUNITIES Opportunities across segments in the entertainment industry … (1/2) Entertainment • Television distribution is projected to garner a share of 62 per cent in the television pie by 2015 (as addressable digitisation is expected to cover the entire country by then) • Television advertisement is also expected to witness robust growth; its share in the advertising industry is expected to touch 42.5 per cent by 2015 from 41 per cent in 2010 Television • Newspapers and niche magazines are likely to drive industry growth • Accelerated growth is forecasted in regional print and local news segments Print • The Indian animation industry was worth USD511 million in 2010 and is expected to expand at CAGR of 23 per cent to USD961 million by 2013 • Growth in international animation films, especially 3D productions, and the subsequent work for Indian production houses will help growth in this segment AGV Source: KPMG Report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: 3D - Three Dimension, AGV - Animation, Gaming and VFX; VFX - Visual Effects MARCH 2013
  • 3131For updated information, please visit www.ibef.org OPPORTUNITIES Opportunities across segments in the entertainment industry … (2/2) Source: KPMG report 2012, PwC India Entertainment and Media Outlook 2011, Aranca Research Notes: 3D - Three Dimension Entertainment • Size of the Indian film industry is expected to touch USD3.1 billion by 2016, up from USD1.9 billion in 2011 • Increasing digital screens and 3D films are expected to help industry growth • Big ticket releases lined up for the next couple of years are also expected to boost revenues Film • 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 • Phase III of e-auctions for FM radio licences will provide an impetus to the segment • Radio advertising is another area likely to experience accelerated growth Radio MARCH 2013
  • 3232 Contents  Advantage India  Market overview and trends  Growth drivers  Success stories: UTV, SUN TV  Opportunities  Useful information For updated information, please visit www.ibef.org Entertainment MARCH 2013
  • 3333For updated information, please visit www.ibef.org USEFUL INFORMATION Entertainment → Animation encompasses three key segments; these are ‘Animation Entertainment’, ‘Visual Effects (VFX)’ and ‘Custom Content Development‘ → India’s animation industry has been growing at a brisk pace; from a size of USD177 million in 2005, the sector is forecasted to post a CAGR of 23.6 per cent over 2005-13 (to USD961 million) Source: ’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca Research Note: E - Estimates, VFX - Visual Effects 177 511 631 961 2005 2010 2011E 2013E CAGR 23.6% 16% 20% 64% Animation VFX Animation Entertainment Custom Content Development Size of the animation industry in India (USD million) Share of sub-segments in India’s animation industry Appendix: Brief overview of the animation industry in India MARCH 2013
  • 3434For updated information, please visit www.ibef.org USEFUL INFORMATION Entertainment → Gaming can be classified under three segments - ‘Personal Computer Games (PC)’, ‘Mobile Games’, ‘Console Games’ and ‘Online Games’ → In 2010, ‘Console Games’ (USD88 million) recorded the highest revenue among different segments of the gaming industry in India, followed by ‘Mobile Games’ (USD60 million) Opportunities* for Indian gaming firms across the segment’s value chain Concept Creation Pre-production Development Post-Production and Testing Final Testing Console Very Strong Strong Good Good Good Mobile Good Good Good Good Good PC Strong Strong Good Good Good Online Strong Strong Good Good Good Source: ‘’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca Research Notes: *We have portrayed the intensity of opportunities in each segment based on the extent of Indian players’ current presence in that segment Appendix: Gaming in India and opportunities for domestic firms MARCH 2013
  • 3535For updated information, please visit www.ibef.org USEFUL INFORMATION Industry Associations … (1/2) 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 Entertainment MARCH 2013
  • 3636For updated information, please visit www.ibef.org USEFUL INFORMATION Industry Associations … (2/2) 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 E-mail: sudhir@indianmi.org Website: www.indianmi.org Entertainment MARCH 2013
  • 3737For updated information, please visit www.ibef.org Glossary → AGV: Animation, Gaming and VFX → 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 Modulation → FY: Indian Financial Year (April to March) → So FY10 implies April 2009 to March 2010 → GST: Goods and Service Tax → IPO: Initial Public Offering → M&A: Merger and Acquisition → M&E: Media and Entertainment → PPP: Purchasing Power Parity → USD: US Dollar → Conversion rate used: USD1= INR 48 → VAS: Value Added Services → VFX: Visual Effects → Wherever applicable, numbers have been rounded off to the nearest whole number USEFUL INFORMATION Entertainment MARCH 2013
  • 38 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. For updated information, please visit www.ibef.org DISCLAIMER Entertainment MARCH 2013 Disclaimer