08 WEDNESDAY, MARCH 17, 2010, DELHI www.livemint.

com

Media mint
the Wall STREET JOURNAL.

SMALL SCREEN SURGE

Over the next five years, the media and entertainment industry in India is projected to grow at 13% to touch Rs1.09
OVERVIEW
Media and entertainment industry (Rs crore)*

Films Television Print Radio Music Animation Gaming Internet Outdoor

120,000
trillion by 2014, according to a report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and 109,100
KPMG, marking a recovery from last year’s slowdown. The study, released at Ficci’s annual media and entertainment
100,000
conference Frames in Mumbai on Tuesday, says the television industry is expected to expand 15% to touch almost
Rs52,100 crore in 2014, with growth driven by an increase in subscription and advertising revenue. Print, meanwhile, is
80,000
projected to grow 9% over the next five years to reach Rs26,900 crore by 2014, after last year’s marginal 2% increase.
Television will be advertising’s mainstay. It “covers over 50% of the population while print reaches only 30%”, said 65,200
57,900 58,700
60,000
Rajesh Jain, executive director at KPMG and head of its media and entertainment practice. “Also, growth in television 51,600
44,300
is led by fragmentation and the entry of new players. For instance, the entry of television channel Star Jalsa expanded
40,000
the Bengali market by 30%.” Advertising is also being diverted into fresh avenues. “DTH (direct to home) has over 16
million subscribers now, Internet is growing in excess of 29% and we have 4.7 million users of Facebook in India alone,”
20,000
Jain said. “All this is ushering in a huge growth in ad spends.” The film industry will do better with a 9% growth rate
over the next five years against the 5% growth of the last three years. The report projects 16% expansion in the radio
0
and music industries. Radio reforms are expected to improve profitability and stimulate foreign investment. 2006 2007 2008 2009 2010P 2014P
*taken for calendar years; numbers have been rounded off to the nearest decimal

FILMS TELEVISION RADIO

Growth rate of the industry (Rs crore) TV industry size (Rs crore) Growth in out of home listenership (across four markets tracked by RAM)
Domestic Overseas Home Cable and Ancillary Subscription revenues Average audience (in 000s)
revenue streams Advertisement revenues 2008 2009
theatrical theatrical video satellite rights
14,000 1,000
60,000
900
12,000 52,100 800
50,000
10,000 700
40,000 600
8,000 500
30,000 25,700 28,900 400
6,000
21,100 24,100 300
4,000 20,000 18,300 200
100
2,000 10,000 0
0 Early Morning Mid- Afternoon Evening Night
2006 2007 2008 2009 2010P 2014P 0 morning morning
2006 2007 2008 2009 2010P 2014P
Note: Previous year figures have been regrouped to exclude the rental market due to lack of accurate data

No. of subcribers (in million)

PRINT 160
Analog Digital DTH IPTV*
MUSIC
140 Mean 4.3 4.4 4.4
100%
120
Among those who have 80%
Comparison of advertising volumes by language
100 60%
(million column cm) purchased full-track
2008 volumes 2009 volumes 80 music downloads 40%
Growth (%)
59.5 in the last 12 months— 20%
English
58.6 -1.50% 60
top three countries 0%
48.3
Hindi
54.8 13.50% 40 1-2 3 4-5 US UK India
On a scale of 1-5; 1 means not at all satisfied and 5 means very satisfied
Vernacular 69.6
69.5 -0.10% 20 Overall level of satisfaction with the experience of full-track music downloading in the last 12 months

Total 177.4 3.10%

182.9 0 Potential for differentiated value propositions
2009 2010P 2014P
Circulation
*Internet Protocol Television High Music concerts, stage shows
Print industry size (Rs crore)
Advertising

30,000
26,900 GAMING “Rich” physical media
Sales value of music

25,000
19,000 Performance royalty charges / TV shows
20,000
16,000 17,200 17,500
15,000 13,900 Mobile Console PC and online
Mobile phone/
10,000
Size of the Indian gaming industry (Rs crore) Internet-based
Audio cassettes CDs
inexpensive CDs music subscription/
4,000
downloads/ringtones
5,000 3,200
3,000
0
2006 2007 2008 2009 2010P 2014P 2,000 Devotional Old film Non-film / classical, New Indian / New film
980 Low etc. Western pop
1,000 650 790
300 440
ANIMATION 0

AD INDUSTRY
2006 2007 2008 2009 2010P 2014P

Size of animation and visual effects industry in India (Rs crore)

OUT OF HOME (OOH) Size of the Indian advertising industry (Rs crore)
5,000
Post-production
Television Print Radio Outdoor Internet advertising
Visual effects
Animation product creation 50,000
4,000
Animation services 42,690
Geographical break-up of OOH spending in 2009
40,000
3,000
Others 34% Mumbai 32%
30,000
2,000 24,690
22,120 22,030
20,000 19,640
16,570
1,000
Delhi 12% 10,000
Pune 2%
0 Ahmedabad 4%
2008 2009 2010P 2014P Hyderabad 4% Chennai 2% 0
2006 2007 2008 2009 2010P 2014P
Bangalore 4% Kolkata 6%
Graphics by Ahmed Raza Khan/Mint P: projected Source: Ficci-KPMG Indian Media and Entertainment Industry Report