An overview of the Indian Media & Entertainment industry and its key segments of TV, OTT/Digital, Film, Gaming, Animation, VFX, Radio, Music, Events and other aspects...

1. The Indian Media & Entertainment Industry
2021
Chaitanya Chinchlikar
chaitanya.c@whistlingwoods.net
Vice President & Chief Technology Officer – Whistling Woods International
Overview – Trends & Analysis

2. The Indian M&E Industry
Key Characteristic -
Armed with volume, looking
for value.
•Fell 24% in 2020 with only
Digital & Online Gaming
growing.
Estimated recovery periods:
•1-2yrs: TV, Film, Music
•2-3yrs: Animation & VFX,
Events
•3yrs+: Print, Radio, OOH
Segments: Television, OTT/Digital, Print, Film,
Animation, VFX, Gaming, Radio, Music, Events,
Sports, OOH, Theme Parks & others
1476
1674.2
1823.3
1383
1730
2235
0
500
1000
1500
2000
2500
2017 2018 2019 2020 2021E 2023E
INR
Billions
Indian M&E Industry
-24%
9%
17%
CAGR

3. M&E Industry
45% 44% 43%
50%
44%
38%
21% 18%
16%
14%
14%
12%
11%
10%
10% 5%
9%
11%
8%
10%
12% 17%
17%
19%
5% 5% 5%
4%
4%
6%
4% 4% 5% 2% 3%
4%
2% 3% 4% 5% 6% 7%
2% 2% 2% 1% 1% 1%
2% 2% 2% 1% 1% 1%
1% 1% 1% 1% 1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2020 2021E 2023E
Music
Radio
OOH
Online
Gaming
Live Events
Animation
& VFX
Digital
Film
Print
2020 Digital Media overtook Print. In 2019, it had already overtaken Film.
M&E historically has been both growing / de-
growing at a higher rate than GDP, given its
reliance on advertising.
However, in 2020, while GDP fell 8%, advertising
fell over 28% & the M&E sector fell by only 24%
highlighting the increasing trend of people paying
for content.

4. Customer Segmentation
Consumer Profiles:
• Digital only – consume content only on
digital platforms, do not access television
• Tactical digital – Consume Pay TV and at
least one paid OTT service
• Bundled digital – Consume Pay TV and
generally only telco-bundled content
• Mass consumers – Consume Pay TV and
occasionally some OTT content
• Free consumers – Do not pay for content
Fact: India’s Mass Consumers are more than the
entire content consumption population of the US.

5. Consumption by Content type
Video: TV, OTT
ExperienQal: Online gaming, Cinemas, Events, OOH
Textual: Print, Online news
Audio: Radio, Music, Audio OTT

6. Key Trends
• Subscriptions – People are willing to pay for content, grew from 10mn subscribers to 28mn.
• Medium Agnostic – People look at type of content for consumption and not medium.
• TV Sets – Big surge coming up in smart connected TV sets by the next wave of cord-cutters.
• Screens – We’re on the cusp of a billion screens, with 75:25 ratio between mobile phones TV sets.
• Content Consumption pattern changing – From group viewing to individual viewing.
• User Generated Content – big surge expected, to reach 1L hours per year.
• Hindi Marketshare drop – Both international & regional languages will challenge Hindi’s dominance.
• Digital Twins – M&E organisations go from Digital Twins to Unique Digital identity

7. Industry IMPACT Case Study
3 Idiots made 450 Cr at the global box office.
What do you think its real impact was for India?

8. Tourism Impact of Films – 3 Idiots
Value Added by film-induced tourism
- 4x revenue of the film
- 500x employment generation

9. The Indian Film Industry
Currently renovating…

10. The Indian Film Industry
• Largest in the world (pre-covid) by:
– Films produced: 1,800+
– Tickets sold: 4bn+
• Biggest value loss bearer due to Covid.
• Had record domesVc theatrical numbers in
2019 with box office collecVons crossing
10,000Cr for the first Vme.
• This is despite India being the world’s most
underscreened market & having a low ATP
(Average Ticket Price) of Rs 110/-.
102.1
115.1
24.9
74.9
130.6
30.0
27.0
3.1
16.2
29.2
21.2
22.1
7.1
18.9
23.4
13.5
19.0
35.4
37.8
52.1
7.5
7.7
1.7
5.4
8.3
0.2
0.1
0.00
0.1
0.2
-
50.0
100.0
150.0
200.0
250.0
2018 2019 2020 2021E 2023E
Film Revenues
DomesticTheatrical Overseas Theatrical Cable & Satellite Rights
Digital / OTT In-Cinema Advertising Ancillary revenue

11. Revenues & Films – Hindi
• In 2019, the number of films crossing 100Cr had
crossed 30 for the first Vme in history with Hindi
accounVng for 17 of them.
• Tanhaji was the highest grosser of 2020 at the
worldwide box office so far with 367Cr crores.
• Trends seen in 2019:
– Top 20 Hindi films contributed only 78% to its box
office, the lowest in history.
– First weekend collecSons dropped to 38% of GBOC.
5
6
5
6
7
10
11
0
3
2
1
0
1
1
5
0
0
1
1
2
2
2
1
1
0
2
4
6
8
10
12
14
16
18
2013 2014 2015 2016 2017 2018 2019 2020
Hindi Films 100Cr+
100Cr 200Cr 300Cr

12. The Indian Film Industry = ‘Bollywood’

13. The ‘Indian’ Film Industry
While ‘Bollywood’ is a commonly used term to define the Indian Film industry,
Hindi films (which the word refers to), accounted for only 15% of films produced in 2019.
That said, Hindi did account for 46% of the revenues.
2019 % 2020 %
Hindi 266 15% 74 17%
Telugu 263 14% 54 12%
Kannada 223 12% 72 16%
Tamil 215 12% 71 16%
Malayalam 200 11% 38 9%
Marathi 118 6% 27 6%
English 110 6% 34 8%
Bengali 110 6% 37 8%
Bhojpuri 80 4% 0 0%
Guajrati 63 3% 14 3%
Punjabi 50 3% 10 2%
Odiya 34 2% 0 0%
Others (Incl dubbed) 101 6% 10 2%
1,833 441
Hindi
17%
Telugu
12%
Kannada
16%
Tamil
16%
Malayalam
9%
Marathi
6%
English
8%
Bengali
9%
Bhojpuri
0%
Guajrati
3%
Punjabi
2% Odiya
0%
Others (Incl
dubbed)
2%

14. The South rises, against the pandemic…

15. Revenues & Films

16. Where does your ticket money go?

17. Ticket Rate Split
When you pay Rs 100 for a movie Vcket, where does the money go?
• Gross – Rs 100
• GST – Rs 15 (18% of Rs 85)
• Net – Rs 85
• Exhibitor & Distributor each get 50% each – Rs 42.5
• Producer(s) – depends on the distribuVon deal (Outright / Min Guarantee / Commission / Distrib Fee)
• Co-producer(s) – depends on the agreement with each other
• Publicity & AdverVsing funding – deal specific, but usually is Last-In-First-Out
• Talent (Actor/Director) – (s)he may be the producer OR may have sweat equity / some rights

18. We need MORE cinema screens…

19. Exhibition – Needs expansion!
124
68
48
18
7
0
20
40
60
80
100
120
140
US UK China Brazil India
Screens/Million
4,723
18,195
41,179
50,776
60,079
66,028
10,635 9,951 9,481 9,530 9,601 9,527
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2009 2013 2016 2017 2018 2019
Screens
China India
3.5
4.7
5.7
6.5
7.5
8.73
9.2
1.4 1.4 1.4 1.4 1.4 1.5 1.6
-
2.0
4.0
6.0
8.0
10.0
2013 2014 2015 2016 2017 2018 2019
Billion
$
Domestic Box Office Size

20. Exhibition
ATP: Multiplex – Rs 150 | Single Screen – Rs 97
48 51
61
61 60
53
0
20
40
60
80
100
120
2017 2018 2019
INB
Bn
Collections
Single Screen
Multiplex
0
20
40
60
80
100
120
0
0.5
1
1.5
2
2017 2018 2019 2020
Domestic BO - Footfalls vs Collections
Footfalls
Collections
925 1,225 1,500 2,100 2,450 2,750 2,950 3,200 3,240
9,710 9,121 8,451 7,400 7,031 6,780 6,651 6,327
5,150
-
2,000
4,000
6,000
8,000
10,000
12,000
2009 2011 2013 2015 2016 2017 2018 2019 2020
Multiplex SingleScreen
9,530 9,601 9,527 8,390

21. Is ‘the world’ watching Indian films?
Or is it just the Indians all over the world?

22. Do Indian Films go global?
331 332 350
439
491
332
0
100
200
300
400
500
600
320
325
330
335
340
345
350
355
2017 2018 2019
Overseas - Releases vs Collections
Films Collections
• Less than 15% of India’s film revenue
comes from overseas
• 70% of Hollywood’s revenue comes from
outside US
• Less than 1% of India’s revenue comes
from non-diaspora viewers

23. Is Hollywood a threat?

24. Oh Hollywood…
Hollywood marketshare in 2017 was 10%.
In 2019 at 15%.
With growing access to global content, cultural
alienation between India & the world is reducing.
In 2019:
• No 1 film at Indian Box Office in 2019 – Avengers Endgame.
• Footfalls for Hollywood at ~ 10Cr – highest in history.
• Hollywood is the 2nd largest contributor to box office.
Hindi is at 44%. Hollywood (15%) above Tamil & Telugu
(13% each).
• Hollywood Avg Ticket Price at Rs 163/-.
Hindi at Rs 142/-. Others < Rs 97/-.

25. Film Wrap Up
• We need more screens.
• We need better analysis of impact of cinema on the economy.
• Forget English & Hindi, focus on where you come from.
• We need to make films that ’travel’. It is very much possible.
• Hollywood is a creeping threat.

26. The Indian Television Industry
The ‘Newsy’ Idiot Box

27. The Indian Television Industry
• Homes: 176 mn
• Revenue Ratio
– Distribution 63%
– Advertising 37%
• ARPU pm: INR225 / US$3
• Channels: 909
• Approx 20L subscribers
cut-the-cord in 2020.
0
50
100
150
200
250
2018 2019 2020 2025E
161
133 131 141
36
39 40
50
2
5 5
40
Subscribers
Pay TV Free TV Connected TV
393 435 468 434 456
267 305 320
251
304
0
200
400
600
2017 2018 2019 2020 2021E
INR
Bilions
TV Revenues - Split & Growth Distribution Revenue Advertising Revenue
660
740
787
685
760
847
0
200
400
600
800
1000
1200
2017 2018 2019 2020 2021E 2023E
INRBillions
TV Revenues
-13%
7% CAGR

28. Do we have too many (news) channels?

29. Channels
• India added, on an avg:
45 new channels p/y between 2000-2015
30 new channels p/y between 2015-2019
• News is 42.7% of all channels 😳 but has only
10.4% viewership. 🤷
5 55
130
263
550
800
885
918 909
0
100
200
300
400
500
600
700
800
900
1000
1990 1995 2000 2005 2010 2015 2018 2019 2020
505
380
532
386
521
388
0
100
200
300
400
500
600
Non-news News
2018
2019
2020

30. Decoding India’s TV viewership

31. Viewership

32. Lockdown Viewership
While the lockdowns saw a
surge in TV viewership, by the
end of 2020, the numbers
were below 2019, as people
had ‘discovered’ & moved to
consuming content on
Digital/OTT platforms,
including 20L people who ‘cut
the cord’ in 2020.

33. Viewership & Language
De-anglicizaVon of
Indian TV conVnues
with English
language content
registering a big
drop in minutes
viewed.

34. Viewership – Kids & Sports
Almost 50% of content watched by kids is GEC Cricket is King

35. Why we see what we see on GECs?

36. GEC – TRP v/s Profitability
Why do we see what we see on
General Entertainment Channels?
How does programming get divided
between building a viewer base and
profitability, thorough the application of
the concept of ‘stick-ability’!
Low Viewership High Viewership
Low
Profitability
High
Profitability
Long running soaps
Low-cost game /
performance-based
reality shows
Mythological series
Recently released movies
Celebrity-based shows
Finite
FicRon Series

37. Kya aap Kajaria tiles khareedenge? 🤨

38. Advertising – Languages, Celebrities
23% of all ads were celebrity-led.
Akshay Kumar retained his spot at the top.
Kiara Advani eclipsed both Deepika & Alia

39. TV Wrap Up
• More & more Indians are cutting the cord.
• We have too many news channels.
• Viewership is de-anglicizing fast.

40. The Indian OTT/Digital Industry
Roti-Kapda-Makaan-Data

41. OTT/Digital
• Valued at US$ 3.10bn in 2020. To double by 2025.
• World’s 2nd largest internet using country
– 750mn broadband users as of Dec 2020.
Added (225mn users = 1 Brazil) in 2 yrs.
• English is not the first choice for 93 out of 100 consumers.
• India has 450 mn+ smartphones (only ~40% of all phones).
• Mobile data cost: from Rs 16/GB in 2016 to Rs 3/GB in 2020.
• Per capita data consumpQon grows from 4GBpm in 2017 to
15.7GBpm in 2020.
119
169
221 235
291
425
0
50
100
150
200
250
300
350
400
450
2017 2018 2019 2020 2021E 2023E
INRBillions
42% CAGR
6% CAGR
80% CAGR
1200
2033
1187
2542
0
500
1000
1500
2000
2500
3000
2018 2019 2020 2021E
Orig OTT Content (Hours)
1
1
4
%

42. Digital Indi@!
Connected Indi@!

43. Telecom & Internet

44. Telecom & Internet
Dec 2020
Tele-Density: 86.38
Urban: 647.9 M, Rural: 525.9 M
668 648 662 648
499 528 510 526
0
200
400
600
800
1000
1200
1400
2017 2018 2019 2020
(millions)
Telecom Subscribers
Urban Rural
In Millions

45. Is India a mobile video country?

46. Yes. India is a mobile video country!
349
406
468
650
0
100
200
300
400
500
600
700
2018 2019 2020 2023E
Mobile Video Viewers

47. Yes. India is a mobile video country!
YouTube is still King

48. Platforms Galore!

49. People are paying for content, FINALLY!

50. Industry revenue, Subscriptions, etc…
Paid digital video subscribers nearly touched 30 million and subscrip8on
revenue grew around 50% as Indians started paying for quality content.
4 11
29
39
7
21
53
71
0
10
20
30
40
50
60
70
80
2018 2019 2020 2021E
millions
Subscribers & Subscriptions
Subscribers Subscriptions
114.9
154.4
191.5 191.5
233.8
3.9
14.2
29.2
43.5
57.3
-
50.0
100.0
150.0
200.0
250.0
2017 2018 2019 2020 2021E
INR
Billions
Digital Industry Revenue
Advertising Subscription

51. That damn Social Media 🙄🤦!!!
We just can’t stop talking about it… OR on it…

52. Social Media & Online News
Twitter is the least used social media platform in India.
That said, it has influence greater than its rank, given that it is
used significantly as a news-dissemination service. India is the 2nd largest online news market in the world
Unique visitors to
news sites / apps
(mn)
Jul-21 Apr-20
India Users (millions) % of population Users (millions) % of population
Facebook 340 25.19% 341 25.26%
YouTube 225 16.67% 280 20.74%
TikTok 0 0.00% 140 10.37%
Instagram 180 13.33% 91 6.74%
LinkedIn 77 5.70% 68 5.04%
Pinterest 70 5.19% 67 4.96%
Snapchat 99 7.33% 23 1.70%
Twitter 22 1.63% 12 0.89%
WhatsApp 390 28.89% 450 33.33%
Telegram 230 17.04% 40 2.96%

53. Digital/OTT Wrap Up
• Indians have finally started paying for content.
• Going forward, growth of cord-cuoers will be based on cost comparison with TV and content
availability.
• India has sVll almost 50% headroom lep in new viewers.
• We are a crazy mobile video watching country.
• Industry needs to come together to enable video search & discovery across plaqorms.

54. Immersive
No more just ‘content’, now get ready for ‘experiences’

55. Content ‘Experience’
• Technology-enabled
experiences in content
consumption are what the
consumer is seeking out.
• The consumption
experience is becoming as
important is the content.

56. Content Platforms

57. Content Platforms
Film / Theatrical TV Digital/OTT VR/AR
Nature of
Viewing
Captive Community viewing Non-captive Family viewing Non-captive Individual viewing Captive Individual viewing
Platform
Viewing
Details
Fixed frame, large screen,
2D & 3D
Fixed frame, small screen,
2D
Fixed frame, mini screen,
2D
FRAMELESS, 2D & 3D,
Duration &
Structure
110-180 mins
60-100 scenes
1-8 shots / scene
22–44 mins
8-10 scenes
1-20 shots / scene
3–60 mins
2-20 scenes
1-4 shots / scene
60secs - 60mins
Fiction
Content
Structure
Primarily stand-alone,
marginally serial
Primarily serial, marginally
stand-alone
Equal amount of stand-alone &
serial content
Equal amount of stand-
alone & serial content
USP
Larger Than Life,
Audio-visual narrative
spectacle
Appointment Viewing,
Story & Character
development
Individuality,
High concept, less formulaic,
writing-focused, pace is critical
???
Immersive & interactive is
all we know currently

58. Platforms
Low Volume High Volume
Low
Value
High
Value
Premium OTT
Theatrical
Immersive
Content
Free(mium) OTT
C&S / DTH
Note:
This is India-specific
There are 4 viewing
platforms & multiple types
of content presently.
On a Viewership / Value
matrix, this is where are
they now & where are they
likely to be 5 yrs from now. Free OTT

59. Gaming & E-Sports
No child’s play…

60. Gaming
30
46
65
76
99
155
0
20
40
60
80
100
120
140
160
180
2017 2018 2019 2020 2021E 2023E
INRBillions
2
7
%
C
A
G
R
Grand Thei Auto 5 is the single most profitable piece of media of ALL TIME!
Produced at a cost of US$265mn in 2013, it has earned US$9bn+ as of 2020.
With a CAGR of 27% over the next 3 yrs, Gaming is the Indian M&E’s industry’s fastest growing segment.
1 in 4 Indians is a gamer

61. Gaming – What is it?

62. Welcome to
the
Gamification
of
EVERYTHING

63. E-Sports – Players

64. E-Sports – Viewers
E-Sports viewers will grow 5X in the next 5 years

65. E-Sports – 🤑🤑🤑
Fortnite global
championship winner
prize money was
3mn$.
That is more than
Wimbledon.

66. E-Sports Value Chain

67. Gaming/E-Sports Wrap Up
• It is no longer an ‘also’.
• Has the potential to be larger than the ENTIRE Film, TV & OTT industry.
• The value chain has just started to come together.
• Mental health / ethical gamification / addiction will be the 3 big issues to contend with.

68. Animation, VFX & Post-Production

69. Animation, VFX & Post-Production
• The animation segment grew 10% in 2020, while the
VFX and post-production segments contracted by 62%
and 58% respectively.
• Animation remained relatively resilient to COVID-19
– Demand for content from OTT platforms increased.
– Demand for domestic animated content grew.
– Entertainment was no longer the primary driving force for animation.
• Studios continued to transition from services to IP
ownership.
• Cosmos-Maya had five new launches in 2020: Bapu,
Gadget Guru Ganesha, the second season of Guddu,
Titoo and Lambuji Tinguji + 2 new Ips – Captain Bharat
and Dr. Tenali Rama + transitioning their most well-
known IP, Selfie With Bajrangi to Disney+ Hotstar.
31.3 39.6 49.5
18.8
60.0
18.3
20.5
23.1
9.7
29.5
17.0
18.8
22.3
24.5
39.6
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2017 2018 2019 2020 2021E
INR
Billions
VFX Post-Prodn Animation Services
67
79
95
53
74
129
0
20
40
60
80
100
120
140
2017 2018 2019 2020 2021E 2023E
INRBillions
35%
CAGR
44%

70. VFX & Post
• Indigenization of the pipeline will yield
great value going forward.
• Today, up to 20-25% of the production
cost is spent on VFX as compared to
10% 5 yrs ago.
• Virtual Production / In-camera VFX will
both improve quality & increase
efficiency.
• Netflix’s decision to set up a global
post-hub in India is a huge boost for
India’s Post-production industry.

71. Music

72. Music
• Music remained stable in 2020
primarily due to increase in digital
licensing / streaming revenues.
• T-Series became the world’s most
subscribed channel on YouTube.
• Indian consumers spent 21.5
hours/week listening to music
which is higher than the global
average of 17.8 hours/week.
• Piracy in the Indian music
ecosystem at 67% is much higher
than the global average of 27%.
13
14.2
15.3 15
18
23
0
5
10
15
20
25
2017 2018 2019 2020 2021E 2023E
INRBillions
15%
CAGR

73. Live Events

74. Live Events
• Indian organized events segment revenues fell 68% in
2020, due to the pandemic induced lockdown and
implementaVon of social distancing norms.
• The segment is expected to recover its pre-COVID levels
by 2023.
• FMCG, government and auto emerged as the key
spenders due to the increased focus on hygiene and
public health programs along with new launches in the
auto sector due to public travel concerns.
• Digital events will conVnue to drive future growth.
65
75
83
27
53
95
0
10
20
30
40
50
60
70
80
90
100
2017 2018 2019 2020 2021E 2023E
INRBillions
Live Events
6
8
%
2
5
1
%

75. Radio

76. Radio
• The industry shrunk 54% in 2020,
primarily due to pandemic in addiVon to
economic slowdown which hit Radio
industry hard.
• Only 5 states generated over 61% of the
ad-revenue.
• In addiVon to the 31 private FM
broadcasters running 385 private radio
staVons in 104 ciVes, AIR has 479
staVons in 23 languages reaching 99% of
India’s populaVon.
29
34
31
14
23
27
0
5
10
15
20
25
30
35
40
45
50
2017 2018 2019 2020 2021E 2023E
INRBillions
5
4
%
92%

77. Sports

78. Sports
• In 2020, viewership of Cricket grew by
3.7% & Kabaddi crashed to nearly 0%.
• Highlights/Repeats viewership was nearly
5x of live.
• UGC in Cricket has grown significantly
with many individuals / groups earning
upwards of 1Cr p.a. on cricket
commentary alone.
• Cricketers got 91% of all brand
endorsements of sportspersons.
• With India’s success in the Olympics and
in Cricket in Australia & England, Sports
live viewership expected to grow rapidly.
15% 16%
27%
13%
51%
34%
30%
26%
34%
49%
43%
61%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2020
Sports Viewership Details
Live Related Highlights / Repeats

79. Technology

80. Technology in the Industry
Where we are at:
• 8k content acquisiVon & workflows for Film.
• 8k/6k stereo content acquisiVon in 360VR.
• 4k content acquisiVon & workflows for TV/OTT.
• Mobile filmmaking & ‘Script-to-Screen in a room’ workflow.
• IndigenizaVon of the enVre VFX pipeline.
• Usage of MoVon Capture in adverVsing, some films.
• Emergence of Virtual Filmmaking for Previz.
• Emergence of ‘Digital Labour’ for RPA.
• Immersive content in Gaming, Tourism, Sports.
What Next?:
• Ubiquitous 4k/8k workflows for
Film, TV & High-end OTT.
• Virtual Filmmaking beyond Previz.
• Mainstream CinemaVc VR.
• Blended content with MoVon &
Volumetric capture.
• Mainstreaming of ‘Digital Labour’.
• 5G (It’s the next ‘panacea’ 🤷).

81. Opportunities

82. The big opportunities in Indian M&E
• Education in M&E
• IP creation – Globally merchandisable IPs across Film, TV, OTT, Gaming – both live action & animated
• Content that travels well globally (to non-diaspora viewers)
• Multiplex Screens
• Non-English / Non-Hindi OTT content
• Immersive Content – VR & AR
• Virtual Filmmaking / Virtual Production
• E-Sports & Online Gaming

83. In any industry, building volume is hard. India already
has the volume and is the largest free-access digital
market in the world.
We now need to build value to each unit of volume.
Only way to do it is quality.

84. References
Data & many of the charts from the FICCI-E&Y M&E Report 2021 & The E&Y Gaming Report 2021
Other data & charts from various other domestic & global industry reports

85. THANK YOU
Chaitanya Chinchlikar
Vice President & Chief Technology Officer
chaitanya.c@whistlingwoods.net