Entertainment industry in India

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. Entertainment industry in India has registered an explosive growth in last two decades making it one of the fastest growing industries in India. From a single state owned channel, Doordarshan in the 1990s there are more than 400 active channels in the country. Worldwide, 2010 saw the global economy begin to recover from a steep decline in 2009. Improved economic conditions in 2010 played a major role in a rebound in customer spend. Since the world economy begin to recover from the global financial crisis of 2008, improved economic conditions played a major role in rebound in consumer spend. While India was not critically impacted by the downturn in 2008 and 2009, it demonstrated one of the highest growth rates this year and continued to at a healthy pace. The rising rate of investments by the private sector and foreign media and entertainment (M&E) majors have improved India's entertainment infrastructure to a great extent. As per the recent report by PricewaterhouseCoopers (PwC), Indians are likely to spend more on entertainment in the coming years with a steady growth in their disposable income. And as per the combined survey report by KMPG and FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is likely to reach US$20.09 billion by the year 2013. The industry pegged at INR 5808 billion in 2009 as compared to INR 3565 billion in 2005. The Indian Media & Entertainment Industry grew from US$12.9 billion in 2009 to US$14.4 billion in 2010, a growth of 11 per cent, according to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and research firm KPMG. The report also states that backed by positive industry sentiment and growing media consumption, the industry is estimated to achieve growth of 13 per cent in 2011 to touch US$16.2 billion. As the industry braces for exciting times ahead, the sector is projected to grow at a CAGR of 14 percent to reach US$28.1 billion by 2015.

Television is one of the major mass media of India and is a huge industry and has thousands of programs in all the states of India. Today India boasts of being the third largest television market in the world. The small screen has produced numerous celebrities of their own kind some even attaining national fame. TV soaps are extremely popular with housewives as well as working women. Approximately half of all Indian households own a television. Television first came to India in the form of Doordarshan (DD) on Sept 15, 1959. Doordarshan is the National Television Network of India and also one of the largest broadcasting organisations in the world. Apart from the state run Doordarshan, there are six DTH players with 54.52 million DTH users in India with the present prediction; it is likely to overtake the US in terms of the largest DTH market in the world. As of 2012, the country has a collection of free and subscription services over a variety of distribution media, through which there are over 823 channels of which 184 are pay channels. Total television viewership of 415 million is amongst the world’s highest with nearly 15-16 Television companies beaming programmers to India. The major players being Doordarshan, STAR TV (Satellite Television Asia Network), Zee Television, United Television, CNN, Sony Television, ATN (Asia Television Network), BBC World, SUN TV, Discovery Channel, TNT and Others. India’s television business has an estimated $3.4 billion in revenue in 2005, according to PricewaterhouseCoopers. With the government is focusing more on Digitalisation, TV distribution is taking new shape Digitalisation has been a major challenge for the government as digital cable is not gaining momentum. According to the new deadline, pan India digitalisation us expected to happen by December 31, 2014. Another challenge for the Television Industry is Average Revenue Per User (ARPU). India is amongst the countries with lowest ARPU as compared to developed countries like US and UK where ARPU is around US$45 to US$60, India has an ARPU approximately US$3.5.

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