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  2. 2. Indias media & entertainment revenue to hit$25 bn by 2015: E&YGrowing digitisation, media consumption, and improved demographics are the leading driversfor the industry growth.The Indian media and entertainment (M&E) industry recorded revenues of $16.3 billion (Rs 81,500 crore) in 2010,and is expected to be in excess of $25 billion (Rs 1,25,000 crore) in the next four years, states the latest report fromErnst & Young (E&Y).The report, titled Spotlight on Indias Entertainment Economy, suggests that Indias growing digital mediaconsumption and favourable demographics are the key drivers for the media and entertainment industrys futuregrowth.According to the study, there has been a surge in investment by global media companies in India, enticed byeconomic liberalisation, near double-digit annual growth, a fast-growing middle class, and a huge volume of demandfor leisure and entertainment.The Indian media and entertainment industry now finds itself at a new turning point -- the digital media. A surge inmass broadband adoption is expected, led by the launch of 3G and 4G services.According to E&Y, by 2015, 90 per cent of Indias projected 187 million broadband subscribers will access the netthrough wireless devices. This, in turn, will present global M&E companies with opportunities to develop "anytime,anywhere" content that caters to a new generation of Indian digital consumers."The M&E industry in India has been, and will continue to be, one of the biggest beneficiaries of Indias favourabledemographics," says Farokh Balsara, Ernst & Youngs media and entertainment leader for Europe, West Asia, India,and Africa."Having one of the worlds youngest populations, high volumes of content consumption, a favourable regulatoryframework and growing digital adoption makes India an attractive investment destination for global media andentertainment companies," says Balsara.Key findings from the reportBroadcasting and cable televisionThe broadcasting and cable TV industry revenue for 2010 was estimated at $7.2 billion (Rs 36,000 crore), up 13.3per cent from the previous year, mainly driven by a 19 per cent growth in advertising revenue. The industry is
  3. 3. projected to grow at a CAGR of 12 per cent to reach $11.4 billion (Rs 57,000 crore) by 2014. The continueddigitisation of distribution infrastructure, the demand for regional and niche content, and the possibility of growth in TVpenetration will drive growth in this segment.Television distributionIndia is the second-largest pay-TV market in the world, with 108 million subscribers and 48 per cent reach to Indianhouseholds. The TV distribution industry is dominated by analog cable, which is highly fragmented and includesabout 60,000 LCOs, and 1,000 multi-system operators (MSOs). However, fierce competition among DTH operators,as well as a recent government policy mandating the digitisation of cable TV, has driven the growth of digital TV.PublishingThe Indian publishing industry revenue for 2010 was estimated at $4.7 billion (Rs 23,500 crore), and is projected togrow at a CAGR of 11 per cent to reach $7.1 billion (Rs 35,500 crore) by 2014. A low-readership penetration of 30per cent compared with a literacy rate of 74 per cent underscores the potential for further growth for publishing inIndia.NewspapersWhile in a number of international markets, the newspaper industry is faced with a declining readership because ofdigital media, the print industry in India continues to grow, driven by an increase in advertising spends, a rise inliteracy rates, and the growth of regional-language and specialty newspapers. The Indian newspaper industry is oneof the largest in the world, with more than 74,000 newspapers in 22 languages, and a readership of 325 million. Fiftyfour newspapers are very popular with advertisers in India, accounting for 42 per cent of all advertising spends, themost for any medium.MagazinesMagazines comprise around 19 per cent of the total publishing industry in India. They are viewed as a luxury product,and rely heavily on newsstand sales rather than subscription sales.FilmsThe Indian film industry is the largest in the world, with more than 1,000 films produced every year, in more than 20languages. With 3.3 billion tickets sold annually, India also has the highest number of theatre admissions. The Indianfilm market derives almost 90 per cent of its revenue from non-English language movies, largely dominated by Hindifilms, followed by South Indian films and other regional films. The Indian film industry is projected to grow from $3.2billion (Rs 16,000 crore) in 2010 to $5 billion (Rs 25,000 crore) by 2014 at a CAGR of 14.1 per cent.Growth is expected from the expansion of multiplexes in smaller cities, investments by foreign studios in domesticand regional productions, the growing popularity of niche movies, and the emergence of digital and ancillary revenuestreams.Radio and musicThe radio and music industries contribute just 2.4 per cent of the total Indian M&E industry revenues. Both segments,however, provide highly popular forms of entertainment; FM radio reaches out to 30 per cent Indians, while the Indianyouth are the second largest audience for paid digital music globally. The radio and music industries togethergenerate around $445 million in 2010, and are projected to grow at a CAGR of 17.3 per cent to reach $844 million(Rs 4220 crore) by 2014.The third phase of radio license auctions, which is expected soon, will see radio networks expanding their reach toadd around 700 radio stations across the country.
  4. 4. SportsCricket is the most popular spectator sport in India, and follows movies as the second-biggest form of entertainment.The Indian Premier League (IPL) is already one of the most valuable sporting brands in the world, currently valued at$3.7 billion(Rs 18,500 crore). Interest in other sports has increased since India hosted the 2010 CommonwealthGames, challenging the notion that it is a single-sport country. This momentum, combined with a young populationand a rising propensity to spend on leisure, presents the sports industry with a number of growth opportunities.According to the report, the two greatest challenges faced by media and entertainment companies doing business inIndia are low average revenues, with the Indian average revenue per user among the lowest in the world; and piracy,which is rampant in India and accounts for in excess of $4 billion (Rs 20,000 crore) per year."The growth strategies in most companies in the US and Western Europe are linked to India and other emergingmarkets," says John Nendick, global media and entertainment leader at Ernst & Young. "However, to succeed inIndia, global media and entertainment companies need to navigate unique challenges in the areas of contentlocalisation, distribution and pricing, regulations and piracy," says Nendick.
  5. 5. Purposes of researchTh ere are two main forms of research undertaken by the media industries. The first is calledmarket research and the second production research. It is important that you understand thepurposes of each of these forms of research and what they involve. Market research involves looking at: statistical data about audience size and composition for a particular media product (for example how many people read The Sun newspaper and what sort of people they are) the extent to which a potential audience are aware of a media product or service (for example how many people are aware of new digital radio channels that are available) what people think about particular products and services and what their patterns of behaviour are (for example what people think about broadband Internet technology and what they use it for) market competitors who are competing for a share of the audience and revenue with similar products. Key Terms National Readership Survey (NRS) provides information to the industry on who reads what publication. Audit Bureau of Circulation (ABC) provides circulation information to the newspaper and magazine industry. Broadcasters’ Audience Research Board (BARB) provides estimates of the number of people watching television programmes. Radio Joint Audience Research Limited (RAJAR) provides estimates of the number of people listening to radio programmes. Finding the right audience However, advertisers are not only interested in the size of the target audience but, perhaps more importantly, the demographic make-up of that audience. It is nogood advertising Saga holidays for the over- 50s to an audience of children and teenagers, however large that audience may be. And the advertising agency charged with promoting holidays for the ‘18-30’ age group would probably not choose to advertise within a religious broadcast targeted at the 35s and over. Finding out detailed, demographic information about the audience is therefore an important purpose of media research.
  6. 6. Key TermsPrimary research - Research to obtain original data using such methods as interviews, questionnaires,focus groups and observation.Secondary research - Research based on the use of pre-existing data and information that has alreadybeen gathered by other people or organisations. It is often available in books, journals or via theInternet.Quantitative research - Type of research that is based on measurable and quantifiable facts and information,producing numerical and statistical data.Qualitative research - Type of research that is based on opinions, attitudes and preferences rather than hardfacts.
  7. 7. Interviews and questionnairesOpen questions allow the person answering to give his or her own views and opinions on particularsubject. They often start with the following words:• what• why• when• how• who.Closed questions are more limited in terms of the potential answers that can be given. They are often answeredwith Yes, No or Don’t know, or an answer picked from a range of given options.
  8. 8. Pre-testingPre-testing your questionnaire on a small sample of your audience before you conduct your full survey is a verygood idea. It will allow you to identify any potential problems with specific questions, or the design andlayout of the questionnaire itself, in good time for you to make any changes. You may also be able to identify someresponses under the ‘Other’ option that may be better to include as one of the specified options
  9. 9. The New Widget Market Research SurveyA month ago we gave you a prototype of our widget to test and use in your home. Please complete thisshort survey to give us your honest opinions about the marketability of the widget.Overall, how favorable or unfavorable is your opinion of the widget? Poor Fair Good Very good ExcellentWhat do you like most about the widget?What do you like least about the widget?How often do you think youd use the widget over the next year? Once a week or more 2-3 times a year 2-3 times a month Once a year or less Once a month Never Every 2-3 monthsHow interested would you be in buying this new widget if it were within your budget? Not at all interested Not very interested
  10. 10. Not sure Somewhat interested Extremely interestedAbout how much would you expect to pay for a new widget?Overall, what would be the THREE most important factors in choosing a widget? Low price Shopping convenience Good value Good sales representative High quality construction Broad selection of accessories Good warranty & service Dont know Recognized brand name OtherIn your opinion, what would be the best way to advertise the widget? Television Internet Radio Display in store Magazine Other NewpaperThank you for completing this survey!
  11. 11. FINDING/CONCLUSIONYou should present your ideas competently, expressing your ideas with clarity andwith appropriate use of subject terminology.. It is important that you clearly reference any work that you use andtake account of any copyright issues that may applyIt is not the size or amount of the research that you have undertaken thatimportant but the methods and techniques you have employed and the wayinwhich you have analysed and used the resultsyou should undertake the survey competently and with only should undertake the survey to near professional standards and workindependently.You should fully explain the problems and the ways in which a research can helpovercome them, using clear examples to support what you are saying. You shouldexpress your ideas fluently using correctsubject terminology.