Media

The global entertainer

India has a large broadcasting and distribution sector, comprising approximately 900 satellite TV channels, 6000 multi-system operators, around 60,000 local cable operators, 7 DTH operators and few IPTV service providers.India has 114,820 registered publications (newspapers and periodicals), close to 2,500 multiplexes and more than 400 mn Internet users – second largest base after China, and is expected to reach out to 640 mn by 2019.

By 2019, digital advertising is projected to have the highest CAGR of 30.2%, while all other sub-sectors are expected to grow at a CAGR between 8% and 18%
By 2020, media market expected to reach USD 33.7 bn

Up to 74% with FDI allowed in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV, Headend-in-the-Sky Broadcasting Services: Upto 49% allowed under automatic route and beyond 49% (up to 74%) allowed under government route

100% FDI is allowed in publishing/ printing of scientific and technical magazines/ speciality journals/ periodicals under the government route

for more details FDI Policy 2017

HIGHLIGHTS

Largest newspaper circulation market globally
World’s largest film industry in terms of tickets sold and number of films made
Second largest TV market in the world

Industry Scenario

The Indian Media & Entertainment sector will touch USD 34.8 bn by 2021.

The Indian M&E industry is projected to grow at a pace of 14% over the period 2016-2021, outshining the global average of 4.2% CAGR, with advertising revenue expected to increase at a compounded Annual Growth Rate (CAGR) of 15.3% during the same period.
Television is expected to grow at a CAGR of 14.7% over the next five years as both advertisement and subscription revenues are projected to exhibit string growth at 14.4% and 14.8% respectively.
Print is projected to continue its growth at 7.3%, largely on the back of continued readership growth in vernacular markets and advertisements' confidence in the medium, tier II and tier III cities.
Films segment is expected to bounce back and is forcasted to grow at CAGR of7.7% as the revenue streams broaden.
Digital advertising is expected to grow at a CAGR of 32% by 2020
Animation and VFX is expected to grow at a CAGR of 20.4% over 2016-2021

Growth Drivers

Entertainment industry CAGR (2016-21)

11.8%
TV industry revenue share

44.2%
Advertising revenue share

38.1%
Print media revenue share

24%

Key policies

Ease of Doing Business initiatives

With a view to promote and facilitate film shootings by foreign film makers in India, Film Facilitation Office (FFO) under the aegis of National Film Development Corporation (NFDC) has been set up to allow single window clearances. FFO Units are located within the NDFC premises at Mumbai, Delhi, Chennai and Kolkata.

Fiscal incentives

• To promote dissemination of information in localized content, the Government is providing 90% subsidy for North-Eastern states and 75% subsidy for other states towards setting up of Community Radio Stations in the country.

• Customs duty on wood in chips or particles for the manufacture of paper, paperboard and newsprint has been reduced to 0 % from 5 %.

National Communication Policy

Ministry's plans of introducing a National Communication Policy and stated that the government has allocated Rs 100 crore (US$ 14.91 million) to revive community radios stations across the country.

National Film Heritage Mission (NFHM)

NFHM aims to restore, digitize and archive films and film material through National Film Archive of India.The project, although envisaged in 2012,received its first tranche of funds of INR 20 crore in March 2016.

Industry Trends

FDI Facts

Growth in FDI equity inflows during April 2014 – March 2017 as compared to April 2011-March 2014
FDI inflows (in USD) in information & broadcasting (including print media) during April 2000 - December 2017
FDI allowed in local cable networks and Multiple System Operators (MSO) in non-Digital addressable System (DAS) areas
FDI allowed in Teleports, DTH, Multi-System Operator, cable networks in DAS areas, mobile TV and others

Recent Investments

February 2018 - Chinese Internet investment company Tencent Holdings Ltd has acquired minority stake in Gaana, a leading music streaming platform, for USD 115 mn
August 2017 - US based investment firm Tiger Global Management LLC has acquired a 25 % stake in 'The Viral Fever' (TVF), an online video content creator, for USD 10 mn.
March 2017 - Star India makes strategic investment in media tech startup Zapr.
March 2017 - Cinepolis, a Mexico-based multiplex chain, plans to add 160 more screens by investing around USD 59.6 mn
January 2017 - KidZania, a Mexican chain of family entertainment centers, plans to invest USD 14.9 mn for setting up a theme park. The third KidZania in India will be somewhere in the South.