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Media And Entertainment Industry Analysis

Overview of Indian Media and Entertainment

Industry

The Indian Media and Marketing industry has shown tremendous growth in the last few
decades. The industry has been one of the major contributors to the economy. In recent years,
the face of the M & E industry in India has changed a lot. Indian M&E industry has seen turmoil
from radio to internet-based entertainment, i.e OTT.
The revenue from the advertisement industry of India accounts for around 0.38 percent of
India’s GDP. These numbers are proof that India has been the second-fastest-growing
advertising industry in Asia only after China.

Value of the media and entertainment industry in India from the financial
year 2009 to 2019 with a forecast until 2024 (in billion Indian rupees)
Value of the media and entertainment industry in India FY 2009-2024

Size of the media and entertainment industry across India in the financial
year 2019, by segment (in billion U.S. dollars)

Size of M&E industry in India FY 2019 by segment

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The growth rate of the media and entertainment sector across India in
2019, by industry

Growth of the M&E sector in India 2019 by industry

The internet based media and entertainment has shown a positive growth while radio and print
media have lost their popularity over the time.

Average daily media consumption across India from 2018 to 2020, with
estimates until 2022 (in hours.minutes)

Daily media consumption in India 2018-2022

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Leading media and entertainment companies in India as of July 2020, by
net sales (in billion Indian rupees)

Leading Indian media and entertainment companies 2020 by net sales

Industry Scenario

Rise in income and evolving lifestyle has led to tremendous growth scope for all the M&E
sectors. India ranks 15 in the world in the music industry and is expected to enter the top 10
music markets by 2022. The media and entertainment industry will grow at a CAGR of 13.5 per
cent during FY19-FY24. It is expected to reach around Rs 3.1 lakh crore by 2024.

India's advertisement market is projected to grow 10.62 per cent y-o-y to Rs 85,250 crore till
2021. India’s advertisement spending touched Rs 67,603 crore in 2019, up 11 per cent y-o-y.
The Indian film industry reached Rs 100 billion in 2019. India’s video streaming industry is
expected to grow at a CAGR of 21.82 per cent by 2023.

The Government of India has supported this sector's growth by taking various initiatives such as
digitizing the cable distribution sector to attract greater institutional funding, increasing Foreign

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Direct Investment limit from 74 per cent to 100 per cent in cable and direct-to-home satellite
platforms and granting industry status to the film industry for easy access to institutional finance.
FDI inflow in the information and broadcasting sector stood at US$ 9.20 billion during April 2000
to March 2020. In 2019, the sector witnessed 21 mergers and acquisitions worth US$ 240
million.

Market Dynamics:
India's advertisement market is projected to grow 10.62% y-o-y to Rs 85,250 crore till 2021.
India’s advertisement spending touched Rs 67,603 crore in 2019, up 11% y-o-y. The Indian film
industry reached Rs 100 billion in 2019. Increasing share of Hollywood content at Indian box
office and the advent of 3-D cinema is driving the growth of digital screens in the country.
India’s video streaming industry is expected to grow at a CAGR of 21.82% by 2023.

Recent development/Investments:
Foreign Direct Investment(FDI) inflow in the Information and Broadcasting (I&B) sector
(including Print Media) for the period April 2000 – March 2020 stood at US$ 9.20 billion as per
the data released by Department for Promotion of Industry and Internal Trade (DPIIT).

● In 2019, the sector witnessed a total of 21 mergers and acquisitions (M&A) worth US $
240 million.
● Shipment of TVs to India increased 15% annually to reach the highest-ever level of 15
million units in 2019.
● In April 2020, Hotstar, owned by the Star network, was rebranded as Disney+Hotstar. It
plans to localise Disney movies and shows by dubbing or adding subtitles in Indian
languages, including Hindi, Tamil and Telugu.
● Bharti Airtel’s direct-to-home (DTH) arm, Airtel Digital TV and Dish TV merged by the
end of August 2019.
● As stated in the Union Budget for 2019-20, Government was to launch a dedicated
channel for start-ups.
● Spotify will launch a lite version for low-end Android phones in India.

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 ● As of January 2019, Zee Studios launched a digital content arm, Zee Studios Originals,
to globally produce premium, original content and create new Intellectual Properties(IPs)
for all digital platforms.
● As of July 2019, SonyLIV, India’s first premium video-on-demand platform (VOD)
crossed 100 million app downloads on the Google Play store.

Government Initiatives:
The Telecom Regulatory Authority of India(TRAI) would approach the Ministry of Information
and Broadcasting, Government of India, with a request to fasttrack the recommendations on
broadcasting. This will help to boost reforms in the broadcasting sector.
The Government of India has agreed to set up the National Centre of Excellence for Animation,
Gaming, Visual Effects and Comics industry in Mumbai.
The Indian and Canadian Governments have signed an audio-visual co-production deal to
enable producers from both the countries exchange and explore their cultures and creativity,
respectively.

Various initiatives are being taken by the Government of India, such as

● digitising the cable distribution sector, to attract greater institutional funding

● increasing FDI limit in cable and DTH satellite platforms from 74% to 100%, and
● granting industry status to the film industry for easy access to institutional finance.

Road Ahead:
Indian M&E industry is on an impressive growth path. The industry is expected to grow at a
much faster rate than the global average rate.
Growth is expected in retail advertisement on the back of several players entering the food and
beverages segment, E-commerce gaining more popularity in the country, and domestic
companies testing out the waters. Rural regions are also a potentially profitable target.
Note: Conversion rate used in April 2020, Rs 1 = US$ 0.013123

Porter's Five Forces Analysis of Entertainment

Industry

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 VARIOUS JOB OPPORTUNITIES IN M&E SECTOR
The media and entertainment industry is one the most important industries and it is estimated
that the industry will provide 7-8 lakhs jobs by 2022. It is one of the fastest growing industries in
the world. There are various factors driving the growth of the industry and some of them are
increase in digital content consumption (COVID has substantially increased that consumption),
easy and innovative access to various digital platforms, higher media penetration in tier II and
tier III cities, regional media has been successful in gaining wider audience base.

ADVERTISING:

Advertising industry is another major employer for media professionals. As a result of the
changing social trends, this industry has seen rapid growth in the last decade. Some of the top
advertising companies in India include. Some of the top advertising companies in India include
DDB Mudra, Madison World, Creative think Media Ltd. Various roles offered in this industry are:

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 ● Creative Director
● Art director
● Account Director
● Brand strategist
● Graphic designer
● Illustrative designer
● Social media manager
● Content producer
● Copywriter

PRINT MEDIA:

Print media is an old and well-established industry offering a wider range of jobs. The various
positions here are:

● Editor in chief
● Officer – Legal and statutory
● Community Journalist
● Script Researcher
● Content Writers – Online

GAMING AND ANIMATION:

The stability and consistent growth & advancement of this industry, in synergy with technological
developments has resulted in a large number of vacancies. This sector is providing a large pool
of jobs to youngsters who are techno-freak.

● Layout Designer
● Storyboard Artist
● Animation Director
● Assistant Graphic Designer
● Modeller
● Roto Artist
● VFX Editor

FILM, TV AND RADIO

Bollywood has influenced each and every Indian soul. Besides the actors and actresses we see
on the big screen, there are various other jobs that Indian film, TV and radio offer. This sector

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has been successful in providing vocational jobs like hair styling, decorating (Set), make-up
artist, photography, fashion designing etc.. The film and television industry comprises 25 major
crafts. These crafts fall under

● Radio Jockey and Producer

● Actor
● Make-up Artist
● Script Writer
● Camera Operator
● Production assistant
● Costume Designer

MUSIC:
Indian music industry is yet another sector that has seen transformation and has been thriving
over many years. From regional music to folk songs, every music form is getting a new platform.
Our music industry is estimated to become the 10th largest market for work by 2020.

● Sound Engineer
● Voice-Over Artist
● Music Composer/Director
● Singer/Vocalist

RADIO INDUSTRY:

● In 1922, the radio broadcasting began in India under British raj. Only two radio
stations were allowed to operate. Since then Indian radio industry has travelled a
long way and in 2019 the market size stood at 30.5 billion Indian rupees.

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 ● AIR(All India Radio) which was established in 1936, is the largest radio network in
the world.it is one of the largest broadcasting organizations in the world in it comes
to the number of languages broadcast diversity it serves. The services include 420
stations located across the country covering 99.19% of the total population. AIR
broadcasts its radio in 23 languages and 175 dialects.
● In 1993 the industry was privatized and Radio City Bangalore was India’s first private
radio station.
● Radio listenership touched 51 million in April 2020; the survey was conducted by AZ
Research.
● As per FICCI-EY, in 2018 the radio industry grew 7.5%. It contributes 4.2% to the
overall advertising revenues of the media and entertainment sector.
● COVID IMPACT: the industry is likely to lose 600 crore and the government to pump
some money into the industry. In April 2020 the revenue of the sector stood at ₹34
crore which was far lesser in April 2019 (₹198 crore)

MUSIC INDUSTRY:

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 ● The IPI is the second oldest industry in the world.
● The industry consists of three types of basic segmentation

1)Live industry 2)Recording Industry 3)Publishing industry.

● Major players include T-series, Sony entertainment, saregamapa ltd. Sale of

music through digital/Streaming channels accounted for more than 85% of the
overall music sales in India in fiscal 2020.
● The segment is expected to grow at a healthy CAGR of 15-20% for next five
year.YouTube; Facebook and Instagram were the major sources of the music
industry rather than music dedicated apps and platforms.
● The entry of Spotify has disrupted the streaming sector with major players like
Gaana, Saavn. As we all know that film music plays a very important role but
digital platforms have allowed non film music to flourish.
● The COVID impact, live events and performances have been hit very hard
however online platforms have become the hub where young artists are
flourishing. Seeing the opportunity, bookmyshow has shifted to online music
concerts and launched a video streaming vertical.

SPORTS INDUSTRY

A country like India where a sport like cricket is treated as a religion & sportspersons like
Sachin Tendulkar are treated like gods, it's significant enough to prove the importance of the
Sports Industry in the nation. But with changing times, viewers developed interest in
different sports like football, Tennis, Kabaddi, Hockey, and currently these sports also attract
a large viewerbase in the country. The prevailing pandemic, COVID-19 has had a large
impact on the sport industry. Big sporting events like the Summer Olympics of 2020, to be
held in Tokyo, Japan and the T-20 Cricket World cup have already been postponed. The
flagship cricketing event of the country, the IPL is being played out of India. Live sports
events are impacted the most. Even though the viewers are willing to watch live sports, the
current scenario has made it impossible for people to be allowed inside the stadiums.

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Some of the important key points of the Sports Entertainment Industry:
1) One of the most viewed content.
2) Broadcast, Live events & OTT.
3) As many sports leagues introduced in recent times.
4) OTT rise as primary sports viewing Platform.
5) Viewers for modern sports increasing in large numbers.
6) The sports watcher stereotype does not exist anymore.
7) Increase in Female & Rural viewership.
8) Cricket maintains its 1st position like previous years.
9) Sports leagues result in rising no. of viewership for other sports.
10) Soccer, kabaddi, wrestling manage to create their viewer base.
11) Boost in no. of viewers for tennis during grand slam seasons.
12) Modern sports like Bike & Car racing create a huge viewer base in the young generation.

ANIMATION & VFX

In the past few years animation & VFX entertainment emerged as an industry with a lot of
exposure & possibilities. This is an industry with a lot of scope in the coming time as due to
covid era it's difficult to bring people together for entertainment purposes, where animation and
VFX stands out in entertaining the masses. Animation is a purely technological based
entertainment medium that has been in the market since Disney brings it in the industry from
then till the date it's always been an industry with a lot of content with a quality to entertain
viewers. This industry has strengthened with a new technology like VFX to give it a more
realistic appearance.

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We can see in the above analysis how the animation & VFX industry is growing in the country
with a lot of positive numbers.

● From the year 2011 till 2019 it has shown a growth in a Market size of animation and
VFX industry.
● The growth has been forecasted for coming years to follow a similar pattern of growth.
● After the evaluation of covid era where it became difficult to provide any firm
entertainment medium which can stand strong in even such bad times, the animation
industry rose as an exception.
● It can clearly predict that the Animation and VFX industry will grow stronger in the
coming time.

Film Industry

Film industry in India started in 1913. India is the largest producer of movies in the world and
has the largest DTH and the second-largest pay-TV subscriber base in the world. Regional
markets have surged in investments towards the media industry. The thousands of
single-screen cinemas that have traditionally dominated the Indian market are beginning to
disappear as a result of the multiplex boom. Due to pandemic hits, the distributors, producers
and theatres have seen so much loss. Now, the film industry is inclined towards digital platforms
and the experience of watching pictures on big screens is different. There will be an increase in

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operating costs to theatres due to norms by the government for social distancing. The
occupancy rates will decrease until the pandemic goes off.

Indian OTT Industry

An over-the-top media service is a streaming media service offered directly to viewers via the
Internet. OTT platforms are likely to overtake the radio and film industry by 2025 in terms of
market share. The Indian OTT market comprises players operating in various industry segments
like television distributors, telecom companies, broadcasters and independent companies and
platforms. We can see the growth in the consumption of OTT content by consumers through the
raise in video consumption and time spent on social media. Advertisers are shifting their focus
towards digital and companies like FMCG, BFSI are estimated to spend more 25% of their
advertising budget on digital.

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Due to covid, there is an increase in digital consumption by the consumers and by the above
graph we can say that, growth in digital video consumption. The revenue from the OTT
platforms increased 18.6% in 2020.

SWOT Analysis of the Indian M&E Industry

Media and Entertainment(M&E) industry is one of those very few sectors of the economy that
can be considered to be evergreen. Domestically, as well as globally, the industry has been
moving on an upward trajectory and is poised to grow further, going ahead. The industry has
been providing employment to people in all the 3 categories, skilled, semi-skilled and unskilled.
The LPG reforms undertaken in 1991 by India, led to a thrust of foreign investments into the
domestic M&E industry which helped the industry as a whole to grow and provide better
services to its customers.

SWOT analysis is a simple framework that lets one to analyze an industry’s or a firm’s
four important pointers:

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 ● Strengths
● Weaknesses
● Opportunities
● Threats

SWOT analysis is so simple yet so powerful that it can be used to analyze even an individual
person or a single firm or even to the whole sector of an economy. The framework assumes that
the first two pointers, i.e. , strengths and weaknesses are internal to an individual or an
organization and the last two, opportunities and threats are more external in nature.

1. Strengths:
● Historically, people are habituated to use this industry and today, the industry has been
branched out into various categories like films, radio, OTT etc.. each of which has seen a
huge viewerbase.
● The ease with which people can access this industry is a huge strength for this industry
as today we can see even in the remote villages, people are pretty much ok to use
devices like radio, tv e.t.c.

2. Weaknesses:
● The industry has been in locks with various institutions on grounds of defamation and
other legal lawsuits, and a lack of a proper set of rules means that it continues to be
under the whims of the ruling political parties.
● Also, a general negative aura has surrounded the industry with studies showing the
ill-effects of spending more time with the industry. An example of this is a drop in child’s
performance as a result of increased time spent in front of TV.

3. Opportunities:
● India is home to close to 1.4 billion people and there’s a huge potential for the industry to
tap into this huge market.
● The advent of smartphones and the penetration of mobile data services, indirectly
helped the industry manifold as now the industry can offer its services across different
mediums like a mobile app.
● On an average, an Indian spends more time in front of a TV than their global
counterparts. The huge TRP ratings being recorded by Indian daily soap operas can be
seen as a validation to this, and the industry has a huge opportunity to grow as there’s a
lot of space to increase the revenue that can be brought in from advertisements.

4. Threats:

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 ● Political instability or a change in governments could affect the industry. Although, there’s
no such instability in India, a shift in regime definitely hampers the industry as a whole.
● The ambiguity with respect to some of the laws related to broadcasting has not helped
the industry and the absence of well documented regulations means that the industry
continues to be locking horns with the governments in rule.

PESTLE Analysis of the Indian M&E Industry

A PESTEL analysis is also a framework or tool used to analyse and understand the external
factors that may impact an organisation's performance. Generally, foreign investors before
entering into a new country, perform this analysis to evaluate how the firm or the industry they’re
planning to takeover or invest in has been performing.

Political Factors:

● These factors determine to what extent a government may or can influence a certain
industry.
● The industry has been used by political parties across the world to mass communicate
with people and failing to adhere to the party in power can even lead to the permanent
closure of the channel or the outlet.

Economic Factors:

● The opening of Indian economy to foreign competitors in 1991 led to a huge inflow of
investments in the sector which helped in the positive growth of the industry.
● The ongoing pandemic of COVID-19 has forced people to stay indoors and this indirectly
helped the industry as the average viewing time jumped up during the nationwide
lockdown.
● India is home to a diverse population of over 1 billion people and only China can be seen
as the country that closely mimics our population. But, the regime in China doesn’t give

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 enough freedom for the industry as the State still exercises control over the content that
is being broadcasted.
● Foreign investors would feel India as a better place to invest rather than investing in
China as in India, there’s a considerable amount of freedom to press and entertainment.

Social Factors:

● India is a vast country and geographically it can be divided into 4 parts, North, South, the
East and the Central India. The tastes and preferences of people in these four broad
geographies are not the same and they vary from one area to another.
● These huge indifferences help the industry as now the industry too can segment itself
and target peoples in different geographies differently.
● The industry has been the most important one in bringing people of all parts of life
together and to fight on a cause. The recent BLM movement in the US or the MeToo
campaign that shook the entire world were all successful because the industry is able to
bring people from different geographies on one single page and voice out their opinion.

Technological Factors:

● Technological advancements over the past few years means that, there are rapid
changes that are happening in the industry and the existing players of the industry need
to keep up with the pace to remain relevant.
● Adapting to new technology would enhance the quality of service that is being provided
which in turn helps to retain the customers.
● Now, even in the remotest parts of India, one can still access a newspaper, a television
and even internet services too. If there’s no access to this then there’d be no market to
tap into. The technical advancements have made it possible for the industry to reach to
even the remote parts of the country.

Legal Factors:

● The media and entertainment industry is one of those industries that’s constantly facing
some or the other legal issues pertaining to defamations, false propogandas e.t.c..
● The ambiguity in the rules laid down by the regulatory council is also not helping the
industry as today there are innumerable number of cases still pending for trial in courts.
● Severe or harsh regulations in the industry would hamper the foreign investments into
the industry thereby affecting the growth of the industry.

Environmental Factors:

● The industry is responsible for successfully bringing awareness to the majority of the
masses on many environmental issues like climate change, ozone layer depletion e.t.c..

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 ● Information regarding climate change and its consequences attain a wider reach through
the industry. The story of Greta Thunberg, a child activist from Sweden who made her
voice heard at a recent world leaders summit on climate change, is well known today
thanks to social media platforms, another arm of the M&E industry.

Conclusion

Media and Entertainment industry has seen huge cultural and technical shifts in the past several
years. From on stage performance, then from Black & white television to color & now 3D, 4K
and Virtual Reality. From single channel Antenna to multi-channel DTH services & now OTT
platform. These changes came across all entertainment and media mediums. Books are getting
replaced by E-Books, E-newspapers. Through all these changes this industry keeps growing in
the country and always sets new benchmarks through its contributions to the economy.

Ongoing covid era again bringing the shift to this industry & pushing it even faster towards the
future scopes of the industry. The OTT platform has experienced a huge boost during lockdown.
To follow the hygiene practices in current scenario paperbacks are hugely replaced by E-Books.
Live events and concerts are replaced by online concerts. Youtube is undoubtedly a medium for
the artists to put forward their art and entertaining masses.

Future Technology in the Industry

Present:
● 8K content acquisition for films.
● 8K/6K Stereo content acquisition in 360 VR.
● Mobile filmmaking.
● Indigenization of the entire VFX pipeline.
● Emergence of Virtual Filmmaking.

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 ● Emergence of Digital labour.
● Immersive content in Gaming, Tourism, Sports.

Coming soon:
● Ubiquitous 4K/8K workflows for TV ang HIGH-end OTT.
● Virtual Filmmaking.
● Mainstream Cinematic VR.
● 6DoF Volumetric capture.
● Mainstreaming of Digital Labour.

Opportunities

● Education in Media and Entertainment.

● IP creations
● Globally merchandisable IPs across Film, TV, OTT, Gaming.
● Content creation that can be recognised globally.
● Better and more multiplex screens.
● Regional OTT content.
● Immersive content using technology like VR and AR.
● Virtual Filmmaking Technology pipelines.
● E Sports and Online Gaming.

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