The document provides an overview of the Indian media and entertainment industry, detailing its segments, major players, and market growth forecasts. It highlights the industry's expected growth, driven by increasing investment and consumer demand, while addressing key trends and challenges such as piracy and high taxation. Additionally, it outlines government initiatives to support the sector and recommends strategies for future development.

1. Industry Analysis
Report
Presented By:
Chethan Shenoy (16010121818)
Shiv Chadha (16010121874)

2. A REPORT ON THE INDIAN MEDIA
AND
ENTERTAINMENT INDUSTRY
Some of the major players in India
• MINDSHARE
• J. WALTER THOMPSON
• VIACOM 18
• RELIANCE BIG ENTERTAINMENT PVT. LTD.

3. An Overview
• The media and entertainment industry in India consists of many
different segments under its folds such as television, print, and
films. It also includes smaller segments like radio, music, OOH,
animation, gaming and visual effects (VFX) and Internet
advertising.
• According to a FICCI-KPMG report published on January 3, 2016,
India’s Media and Entertainment (M&E) industry reached Rs 98,000
crore in 2015, a 14% increase as compared to 2012.

4. ABOUT THE COMPANIES
The company was created by the merger of the media
operations of JWT and Ogilvy & Mather, then the two big full
service advertising agencies within WPP Group. The launch
team comprised Mandy Pooler and Nick Emery from O&M and
Ron De Pear and James Walker from JWT. Initially the business
faced strong opposition to the merger from the agency
parent GroupM in the US region.
In India its main headquarters are in Mumbai and has offices in
Bangalore, Chennai, Delhi, Kochi and Kolkata.

5. • J. Walter Thompson is an
international advertising
agency headquartered in New York. It
has more than 200 offices in over 90
countries. With a network of nearly
10,000 marketers, it has an influential
presence in the global advertising
sector.[2]
• As the fourth-largest agency network in
the world, J. Walter Thompson is one of
the key subsidiaries of the WPP
Group(NASDAQ:WPPGY).
• Offices present in Mumbai, Kolkata,
Harayana and Chennai.

6. • Viacom 18 Media Pvt. Limited founded
in November 2007 is a 50/50 joint
venture operation in India
between Viacom and the Network
18 Group based in Mumbai. Viacom 18
owns and operates various channels of
the Viacom group for
the Indian viewers, as well as manage
various Viacom's consumer products in
India. In July 2008, Colors was
launched. In January 2010, Viacom 18
went international with the launch of
Colors in the US.

7. • Reliance Entertainment (formerly known
as Reliance BIG Entertainment) is a wholly
owned subsidiary of the Reliance Anil
Dhirubhai Ambani Group handling its media
and entertainment business, across
content and distribution platforms.

8. Size Of The Industry
• Media entertainment industry in India is expected to grow steadily
over the next five years. Revenues of the industry are likely to
exceed US $ 32.7 billion in 2019 from US $ 17.0 billion in 2014,
growing at a compound annual growth rate (CAGR) 14.0 percent
between 2015 and 2020
• The foreign direct investment (FDI) inflows in the information and
broadcasting (I&B) sector (including print media) in the period
April 2000 – June 2015 stood at US$ 4,050.58 million, as per data
released by Department of Industrial Policy and Promotion (DIPP).

9. Media and Entertainment Industry In India

10. Structure Of The Industry
Media industry is composed of various segments like television,
print, films, music, digital etc. The share of each of the
components in the total industry can be shown in a chart below.
Television contributes to the largest share as of now and
continues to grow at an ever increasing rate. It is expected to
grow at 51% till 2017.

11. What role is the Indian Government playing
in this?
• To promote exchange of culture and art between the two countries, the
Indian and Canadian governments signed a co-production deal in 2014.
This deal would help producers from both countries to enhance and
utilize their creative, technical, artistic and marketing resources in the
process of making films/serials.
•
• The Central Government has given the green signal for licenses to
around 50 new news and entertainment channels in India. Star, Sony,
Viacom and Zee have already acquired licenses to such energies.
Presently, around 350 broadcasters cater to close to 780 channels
ranging from news to entertainment to sport and many other domains.

12. Major Trends In Media And Entertainment
Industry
• High and multiple taxes in film industry
• Piracy
• Intellectual Property Rights:

13. Growth Drivers
• Increasing investment in FILM PRODUCTION.
• People willing to pay for QUALITY.
• Encouraging REGULATORY ENVIRONMENT.
Risks And Concern
• Slowdown in Content Supply
• Alternative Revenue.
• Mall Development delays.
• Uncertainty over Entertainment Tax

14. Macro Environmental Factors
(Pestel Analysis)

15. Porter’s Five Forces
• Barriers to Entry (HIGH)
• Consumers can SWITCH CHANNELS
• Increased GLOBALISATION
• Availability of alternative sources for Entertainment.
• Threat of New Entrants (LOW)
• High SUNK COST
• High CAPITAL REQUIREMENTS
• Difficult access to DISTRIBUTION.
• Steeper LEARNING CURVE because of MATURE MARKET.

16. Competitiveness within the Firms (HIGH)
• Highly FRAGMENTED MARKET
• High FIXED COST
• Highly PERISHABLE PRODUCTS
Bargaining Power Of Suppliers (LOW)
• Decreasing Bargaining Power of SUPPLIERS.
• Increasing Number of CONTENT WRITERS

17. Threat of Substitues (HIGH)
• FILM INDUSTRY.
• Significant sporting events like WORLD CUPS.
• Significant CULTURAL EVENTS.
• PRINT MEDIA .
• INTERNET.

19. PRICING STRATEGIES OF THE ENTERTAINMENT
INDUSTRY
PVR CINEMAS
• Priya village road show, popularly known as PVR is the pioneer in
establishing the theatre system in India. PVR started its operations in the
year 1998 and redefined the way movie service provided in India. It is
the first Indian company that corporatized the theatre system. Till then
theatres were owned by the individuals. PVR knew that establishing
multiplexes alone cannot help it to expand. Therefore, it started an
innovative idea of holding the theatres and screens.

20. PRIMARY OBJECTIVE
• Pricing a movie ticket is a complex issue. PVR believed in providing high
quality movie experience at an affordable price. Its objectives:
• Increase profits.
• Attract new customers.
• Maintain current customers.
• Increase profit per customer.
• Generate cash.
• Improve ROI.

21. ANALYSE PRICE MIX
• We have compared PVR's pricing strategies with other multiplexes. In
multiplexes, tickets are priced depending on perceptions such as brand
value of movies. While in PVR, lifestyle concepts like Gold Class where
tickets are priced at Rs. 500 because benefits include ultra-reclining
seats in addition to exclusive butler services. The price quoted by PVR
on weekends and on weekdays clearly depicts that it is targeting high
earning people as they can afford such prices on weekends. and on the
other hand, that is on weekdays it is targeting students, low income
people, retired people

22. PRICING METHOD
• Skimming Pricing Method & Penetrating Pricing Method:
• The pricing strategy adopted here is a skimming price strategy. PVR had
a clear-cut picture of what kind of services to be provided to customers.
Since they had a unique way of interaction with their customers, they
had to incur heavy costs in implementing this strategy of high price. So,
it’s worth paying such price for tickets in PVR. The pricing strategy
adopted by PVR is skimming the market on weekends and penetrating
the market on weekdays.

23. FACTORS AFFECTING THE PRICING STRATEGIES
• Different variants of theatre classes [Economy class, Europa and
Gold class]
• Timing of the shows [Morning, Afternoon and Night Shows]
• Pre-booking of snacks and beverages.
• 3-D cinemas [I-MAX]
• Pricing in the market.

24. STRATEGIES
EXPANSION STRATEGY:
• Taking PVR as an example,
• Definite plans to grow multifield over the next 3-5 years with plans to set up
300 screens and expand over 40 cities from 20 cities at present.
• The company also aims to set up bowling centres and ice skating rinks and
expand its presence in key cities and become a dominant player at retail
entertainment space at pan India level.
 ANCILLIARY SERVICES:
• Providing snacks and beverages to your seat.
• Providing your choice of row and seating arrangements.

25. GOVERNMENTS PUSH
• The Union government is planning to set up a center of excellence for
skilling media and entertainment industry professionals and has also decided to
fund movies to participate in foreign film festivals.
• The government has also decided to provide funds for movies,
including Bollywood and regional films, for participating in foreign film
festivals, he said, adding the nature of funding has not been decided yet.
• The government would constitute a new category in the National Film Award, to
be given to the state which has facilitated clearances for film shooting in an
easy manner.
• The government is planning to expand the coverage by setting three private FM
stations in cities with more than one lakh population and 100 radio stations in
those villages where private players don't want to venture.

26. PERFORMANCE ANALYSIS
• Demand Procurers:
• Increase in incomes, thereby an uphill trend in lifestyle and affluence.
• Increase in demography of young people with access to high internet & devices
• Upcoming use of VFX in the movies.
• Deployment of emerging technologies such a virtual reality, augmented reality, drone shootings, etc.
• Growth Enablers:
• Ministry of information and broadcasting has set up the film facilitation office to facilitate efficient
approvals and improving ease of shooting in India.
• Setting up of “Centres of Excellence” with a state of art facilities by state governments to promote
gaming, animation, media and entertainment sector.
• Increased FDI limits

27. OUTLOOK AND RECOMMENDATION FOR INDIA’S
ENTERTAINMENT INDUSTRY
• India’s entertainment and media sector is expected to grow steadily over the
next four years, according to PwC’s Global Entertainment and Media Outlook
2017-21.
• The industry is expected to exceed ₹291,000 crores by 2021, growing at a CAGR
of 10.5 per cent.
• Being a relatively under-developed market in terms of per capita spend on
entertainment and media will allow India to grow at 10.57 per cent over the
next five years to an overall size of ₹290,539 crore.
• Also, being the least digitised market will allow the traditional media to grow
without being disrupted by digital competition.”
• The report said that TV subscription revenues are expected to grow from
₹52,755 crores in 2016 to ₹90,713 crores in 2021 at a CAGR of 11.6 per cent.
Though subscriber numbers are still growing, explosive growth levels of the
recent past will not be replicated in the future.