MINI PROJECT

MEDIA AND ENTERTAINMENT INDUSTRY ANALYSIS

(Submitted in partial fulfillment of Mini Project 2 for the course
MBA)

submitted by:
Faculty Mentor:
MR. PAWAN OMER PRAGYA TRIVEDI
ASSISTANT PROFESSOR. Roll no -2004340700030
MBA 2020-2022
JAGRAN INSTITUTE OF
MANAGEMENT
 ACKNOWLEDGEMENT

I have taken efforts in this project . However it would have not been possible without
the kind support and help of many individuals . I would like to extend my sincere
thanks to all of them .

I Would like to express my special thanks of gratitude to Mr Pawan Omer , assistant

professor, jagran institute of management Kanpur who gave me the golden
opportunity to do this wonderful project on the topic mini project which also helped
me in doing a lot of research and I came to know more about so many new things .

Secondly I would also like to thank my friends who helped me a lot in finishing this
project within the limited . It helped me increase my knowledge and skills.

PRAGYA TRIVEDI
MBA 2 semester
2020-2022
 Index
Content Page no

1. Type of the industry

2. Objective of the industry

3. Size of the industry

4. Industry contribution

5. Government policies and plan of the

industry
6. Type of product

7. Type of production

8. Industry investment

9. Demand and supply to the market

10. Industry growth drivers

11.Major players in the industry

12.Government plans and policies

13New innovation and creativity of the industry

14.Future strategies

15.Covid -19 impact

16.Bibliography
 Executive summary
India’s media and entertainment industries have always been an important part of
our national story. As a young nation born in an era where film and radio were in
their infancy, we have seen our triumphs and tribulations reflected in the mass media
from the very start. These Industries have also become important contributors to
Indian economic prosperity.
The Media and Entertainment (M&E) industry has multiple segments that combine
into one vertical; Movies/Cinema, Television, Music, Publishing, Radio, Internet,
Advertising and Gaming. Moreover, trends and drivers for each of the segments vary
across sub-segments, geographies and consumer segments. This makes the vertical
unique, since these sub-verticals compete, compliment and combine to fulfil the
ever-increasing demand for entertainment and information globally.
The industry also depends on multiple external factors/technology developments
like wireless, mobile, devices, digitization, internet access speeds, cloud storage,
consumer analytics and social media among others. The industry has successfully
adapted around these developments in every generation. Since 1990s, digitization of
content has changed creation and delivery of music. Another disruption in 2000s,
the rise of the internet was a game changer for all the sub-verticals of the industry.
Presently, social media has been instrumental in shaping the present media &
entertainment industry. Traditionally the M&E industry has been a creative industry
following technology innovations and consumer demands. By its inherent nature,
the industry is extremely dependent on markets, cultures, languages and consumer
segments.
The Indian Media and Entertainment (M&E) industry is a sunrise sector for the
economy and is making significant strides. Proving its resilience to the world, Indian
M&E industry is on the cusp of a strong phase of growth, backed by rising consumer
demand and improving advertising revenue. The industry has largely been driven by
increasing digitisation and higher internet usage over the last decade. Internet has
almost become a mainstream media for entertainment for most of the people.
Media is consumed by audience across demographics and various avenues such as
television, films, out-of-home (OOH), radio, animation, and visual effect (VFX),
music, gaming, digital advertising, and print.
 Type of industry
The word “media” derives its meaning from the Latin medium, which means “in the
middle”. In Media entrepreneurship, the media refers to the traditional mass
communication system and Content generators as well as other technologies for
mediated human speech. This would include Traditional publishing (newspapers,
periodicals, or books), traditional electronic media (broadcasting, broadband, cable,
or satellite), motion pictures, video gaming, recorded music, Advertising, and
adaptations of the Internet for any of these media. The term media used to Denote a
section of the media especially envisioned and designed to reach a very large
audience.
“Mass media” as the name suggests is the media that reach the mass spread over a
vast area Simultaneously. Any media that multiplies massages and takes it to a large
number of people Simultaneously is called Mass Media.
The phrase Media began to be used in 1920, the notion of mass media was generally
restricted to Print media up until the post Second World War, when radio, television,
and video were Introduced. Due to development in science and technology, different
types of media-originated Accordingly in different stages of the history of the world
as; Print media including books, pamphlets, newspapers, magazines, etc. Originated
from the late 15th century. Recordings including gramophone records, magnetic
tapes, cassettes, cartridges, CDs, DVDs, etc. Originated from the late 19 th century
and Cinema about 1900. Radio came into Existence from about 1910 and Television
find its place from about 1950, Internet from about 1990, and Mobile phones from
about 2000.
Media also broadly classified into two types visual and non-visual based on its
nature, scope, and Effectiveness on the society. Press or media evaluated as the
fourth pillar of Indian democratic System which was the prime force of the struggle
of independence Many freedom fighters started a newspaper and different works of
literature to address the public issues to create nationality Among the people, after
the independence over the 250 years media or enjoy the same status of Importance
and reputation due to the support and trust of people. The media and entertainment
industry consists of film, television, radio and print. These segments include movies,
TV Shows, radio shows, news, music, newspapers, magazines, and books.
 Size of the industry

Source: Business standard.com

India’s media and entertainment (M&E) industry is expected to expand at a CAGR

of 3.24% between 2019-20 and 2021-22 to reach US$ 25.56 billion by 2021-22 due
to acceleration of digital adoption among users across geographies.
In FY20, television, print and digital and OTT platforms stood at Rs. 778 billion
(US$ 10.66 billion), Rs. 306 billion (US$ 4.19 billion) and Rs. 218 billion (US$ 2.99
billion), respectively. These mediums are projected to reach Rs. 769 billion (US$
10.53 billion), Rs. 296 billion (US$ 4.05 billion) and Rs.338 billion (US$ 4.63
billion), respectively, by FY22. In FY20, the Indian digital segment grew by 35%
due to upsurge in paid subscriber base across all OTT platforms. The online music
market in India is expected to surpass US$ 273 million by end-2020.
In 2020, India’s mobile gaming segment registered a market size of US$ 1.2 billion
and is expected to increase at CAGR of 6.1% by 2025. The country posted average
revenue of US$ 8.8 per user, with user penetration rate of 10.1%.
In 2020, the television market size stood at Rs. 778 billion (US$ 10.66 billion) and
is estimated to reach Rs. 769 billion (US$ 10.53 billion) by 2022. TV broadcasters
witnessed a growth of 13% in FY20 to reach annual revenues worth Rs. 420 billion
(US$ 5.75 billion). Share of the subscription revenues in the overall revenue of
broadcasters rose from 32.4% in FY19 to 37.7% in FY20.According to the Media
and Entertainment Outlook 2020, India is likely to emerge as the world’s sixth-
largest OTT (over-the-top) streaming market by 2024. The market is expected to
post a CAGR of 28.6% over the next four years to generate revenue worth US$ 2.9
billion
Animation, OOH, VFX, Radio, Digital Advertising and Gaming are emerging as fast
growing Segments. Till 2023, these segments are expected to grow at a
Compounding Rate of:
Animation and VFX : 15.50%
OOH: 9.20%
Radio : 10.20%
Digital Advertising: 30.20%
Gaming: 22.10%
According to ratings firm Crisil, the Indian media and entertainment (M&E) sector
is projected to grow at 27% in revenue to ~ Rs. 1.37 lakh crore (US$ 18.92 billion)
in FY22. Segments which would recover faster to pre-pandemic levels include
digital and television (TV) while print, films, outdoor, and radio would take longer
to return to pre-pandemic levels.
The TV segment contributing about half of the sector’s topline, will register positive
growth in FY22. In 2020, Ad sales recovered rapidly driven by the airing of new
content, sporting events such as the Indian Premier League and an upbeat festive
season.
The entertainment and media industry has a potential to reach US$ 100 milion by
2030. India’s total online video market is anticipated to expand to US$ 4.5 billion in
revenue over the next five years, growing at a compound annual growth rate (CAGR)
of 26% between 2020 and 2025, according to
Media Partners Asia (MPA) in its latest report called India Online Video &
Broadband Distribution 2021.
Objective and goals of the industry

Media or mass media is a platform or a means of communication that reaches a large

number of people via television, magazines, billboards etc . Basically media includes
everything from broadcasting to internet . They play an important part in uplifting
brand / organization. One can always look out for different media relations firm
which offers excellent services for brands . The scope of mass communication or
media is very extensive and it deals with the variety of objectives . It is also a medium
to entertain people and make them fell happy and joyous. It also helps in educating
the audience . Media is one of the best media of communication. With the help of
various median like electronic, print and web media , the mass communication is
accomplished in a suitable way. A vast majority of people all across the world ,
rely upon various sources of media for keeping themselves updated on various
ongoing issues around the world . Media plays an important role in the whole society
which is the main reason that a lot of brands and organizations approach PR
companies .
Aim and objective of media
Educating the society- This is one of the most roles of media to educate the society.
One can explore and analyze various product reviews, do price comparison for
various items , read news about politics ,fashion ,war, weather , health and much
more with the help of media . Media exposes issues like poverty, illiteracy, social
backwardness etc which actually helps in educating a large number of audience .
Voice against social evils - Media also plays a important role in raising ones voice
for evils acts . Also plays a constructive role in the society by raising social issues .
For which we have many examples such as dowry, female foeticide, gender
discrimination etc, that have been raised by media quite well .
Transmits information- Media often gleans the information and then broadcast it
via print , television, radio etc from time to time so that the general public stays
aware of what is going on in the country and in the entire world .
Media and entertainment industry contribution to the society
The entertainment and media industry has been the powerhouse Of creative talent In
India for several decades . The Media and Entertainment Industry has been the
Powerhouse of creative talent in India for several decades. The industry also
Employs, across both formal and Informal sectors 1-1.2 million People, contributing
significantly To India’s job creation. Most media companies are Aware of the
massive shifts In content creation and Consumption in their industry. Companies are
reinventing Themselves by innovating their Business models to both attract and
retain audiences. The three Vectors of growth highlighted in the previous year’s
report – the Digitally connected consumer, The rural consumer and the Potential of
niche content Continue to represent the Opportunity pools of growth in The industry.
The industry promises to Continue a strong double digit Growth in the next five
years, And is poised to add 700-800K New jobs in the country.
With The rising consumer demands, Changing business models And digital
disruptions, the Industry needs to prepare Itself for a completely different And
perhaps, unrecognizable Workforce by 2022. The demand For talent and functional
skills In the industry will outstrip Supply given the pace of growth. Concerted efforts
from the Government, academia as well as industry bodies are the need Of the hour
to create a large And skilled workforce to take The industry to the pinnacles of
Growth.
The media and entertainment industry plays a principal role in this world of constant
and instant communication. The wide reach and influence that this sector is one of
the major reasons behind its popularity among job seekers. The media and
entertainment sector, with several potential filled sub sectors, is considered one of
India’s sunrise sectors. This industry, with its interesting and challenging sub sectors
like film, television, animation, gaming, radio, advertising and many more, is
attracting a lot of young talent. The Media and Entertainment industry exclusively
nourishes innovation. This eminently creative industry nurtures creative talent and
allows people interested in communication to combine their love for this industry
with creativity and originality. In summary, there is significant Potential for growth,
with Industry creating additional 700-800K jobs in the next 5 years. However,
industry Participants with the support of The government need to build strong
pipeline of talent and Ensure large scale upskilling of Its current workforce.

Industries contribution in national GDP

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the
economy and is making significant strides. Proving its resilience to the world, Indian
M&E industry is on the cusp of a strong phase of growth, backed by rising consumer
demand and improving advertising revenue. India’s advertising revenue is projected
to reach Rs. 672 billion (US$ 9.29 billion) in FY22. Subscription revenue in India is
projected to reach Rs. 698 billion (US$ 9.65 billion) in FY22. The advertising-based
video on demand (AVoD) segment is expected to rise at a CAGR of 24% to reach
US$ 2.6 billion by 2025.
Their contribution to the M&E sector increased from 16% in 2019 to 23% last year
and they added a whopping ₹26 billion to the industry. “While television remained
the largest segment, digital media overtook print, and online gaming overtook a
disrupted filmed entertainment segment in 2020,
The media and entertainment industry has “humongous” potential in India and can
grow up to four times to USD 100 billion in the next 10 years .The audience demand
for entertainment is only going up and the mode of distribution has changed for the
industry. Currently, the media and entertainment industry stands at USD 24 billion
and is about one per cent of the country’s gross domestic product (GDP).
During FY20, the Indian media and entertainment sector registered a revenue growth
of 9%YoY at Rs 1.8 trillion (US$ 25.7 billion). While television retained its strength
as the largest choice of advertising, digital media overtook filmed entertainment in
FY20 to become the third-largest segment of the media sector. There are telling signs
that the Indian economy is slowing down. The government lowered its GDP estimate
for FY19 from 7.2 per cent earlier to 7 per cent, which is the lowest level in five
years. Despite the apparent downturn in overall economic Growth, the media and
entertainment industry (M&E) in India posted a solid growth Of 13 per cent during
FY19 to reach a size of INR1631 billion. TV remains the largest Segment within
M&E but digital and online gaming are the fastest growing.
Industries contribution to employment
The media and culture industries have undergone significant change in the past two
Decades, marked by rapid growth in employment opportunities in the sector and
dizzying Shifts in the structure of the labour market and in work organization – both
within Employment relationships and through commercial contracts – and by the
positive and Negative consequences of information and communications
technologies (ICTs) on Employment relationships and on business and work. These
industries play a crucial role in Meeting society’s need for information,
entertainment, communication and creativity, promoting the value of heritage,
expression and diversity, and supporting democratic processes. Employment in these
industries has grown, and draws on the creativity, skills, professionalism and
dedication of businesses and workers; however, the sector has a long tradition of
insecure work, characterized by unclear contractual arrangements and questions over
the employment status of its workforce .
M&E industry is a very vivid and versatile industry and the scope of a career in this
field is vast and varied. These unique jobs not only offer promising future but also
provide immense creative satisfaction. India presents great scope for the
development of media and entertainment industry. The large volume of population
with access to both print and electronic media represents tremendous growth
opportunities in media jobs.
In media and culture enterprises, restructuring, the reorganization of production
processes, the need to ensure economic viability and the use of increasingly
advanced technologies can lead to changes in employment relationships. The
increasing numbers of freelance workers and job losses in recent years have made
union organization a challenge, although such insecurity might encourage workers
to seek protection through collective efforts. The majority of media and culture
workers have long and irregular hours, low and variable earnings, temporary job
tenure, regular unemployment and low protection. Many performers are freelance
professionals for whom work tends to be infrequent, Unpredictable and short-term.
In the current era of non-standard work arrangements, workers in the media and
culture industries may be required to be increasingly flexible about tasks, work
schedules and the duration and nature of the employment relationship.

Industry contribution to consumer

Human beings are ever wanting social animals. In this present world, which is
considered to be full of complexities, consumers are always trying to entertain
themselves in naval ways. The type of media has always proved itself to be
crucial in delivering the entertainment content. Starting from a time when
various entertainment content was routed through face-to face mode, we have
reached in a revolutionary era of digitisation. With the increase in purchasing
power of consumers, acceptability of internet, improvement in technology and
availability of low cost data, the entertainment and media industry has adapted
itself successfully with the changing customer needs and wants.

The entertainment industry is entertaining the consumers from ages by various

media. From time to time and with changing market dynamics, different new
entertainment media has evolved. Entertainment media helps people reduce their
stress level. With the change in technological environment consumers have access
to a mix of various different entertainment media like movies, theatre, live concerts,
festival carnivals, art and exhibition, the internet, Etc.

Consumer behaviour has become highly volatile in the present era of globalization.
Changes in consumers’ exposure, income, education, experiences, easy
availability of foreign products and hallow effect have casted their shadow on their
behaviour. In present marketing scenario, it has become inevitable for business
firms to understand consumer behaviour in order to provide want-satisfying goods
and services to present and potential consumers. Marketers are always in search of
an offering which can satisfy the ever changing needs and wants of consumers.
One of such type of offerings is ‘entertainment’. Entertainment being intangible
in nature is something which can be just experienced. Media through which it is
delivered plays a very important role in increasing the effectiveness of this
offering. The entertainment industry has noticed major changes in entertaining the
customers.

Type of product

Media and entertainment companies create products and provide services for
different purposes. They may aim to educate and raise awareness or entertain and
give temporary escape from the stresses of daily life. From newspapers, television
and radio news shows, educational books, documentaries, and reality shows, to
cartoons, animated films, sitcoms, fiction films and books, workers in media and
entertainment bring various skills and backgrounds to their jobs.

Print media
Print media is one of the oldest and basic forms of mass communication. It includes
newspapers, weeklies, magazines, monthlies and other forms of printed journals. A
basic understanding of the print media is essential in the study of mass
communication. A basic understanding of the print media is essential in the study of
mass Communication. The contribution of print media in providing information and
transfer of knowledge is remarkable. Even after the advent of electronic media, the
print media has not lost its charm or relevance. Print media has the advantage of
making a longer impact on the minds of the reader, with more in-depth reporting and
analysis.
This type of news media used to be the only way of delivering information to the
public. For the generations of the 80s and 90s, print media was the only media of
entertain. People relied on newspapers and magazines to learn everything, from
recipes and entertainment news to important information about the country or the
world. Print media includes:

Newspapers – printed and distributed on a daily or weekly basis. They include news
related to sports, politics, technology, science, local news, national news,
international news, birth notices, as well as entertainment news related to fashion,
celebrities, and movies. Today’s parents grew up with this type of printed media.
Magazines – printed on a weekly, monthly, quarterly, or annual basis. It contains
information about finance, food, lifestyle, fashion, sports, etc.
Electronic media
Electronic media are media that use electronics or electromechanical means for the
audience to access the content. This is in contrast to static media, which today are
most often created digitally, but do not require electronics to be accessed by the end
user in the printed form.
Television - In the past, there were a few channels sharing various types of content,
whereas now we have hundreds of TV channels to choose from. Each channel
delivers a different type of content, so you have a separate channel for news, drama,
movies, sports, animation, nature, travel, politics, cartoon, and religion. It’s the
number one broadcasting media due to its reach to the audience.
Radio - uses radio waves to transmit entertaining, informative, and educative
content to the public. Due to its high reach to the audience, radio is widely used for
advertising products and services. Radio is one of the oldest means of entertainment,
and today people often hear it to find out the weather and traffic while commuting.
Internet Media - Nowadays, we are relying on the Internet to get the news a lot
more often than traditional news sources. Websites provide information in the form
of video, text, and audio. We can even choose the way we want to receive the news.

Type of production
The Media and Entertainment Industry is emerging as a crucial sector for
India’s development. It has and will contribute hugely to our country’s
economic growth. It has also been a major job creator and is known to
nurture creative and innovative talent. This industry offers jobs under five
major sub sectors; Advertising and Digital Industry, Print Industry,
Gaming and Animation, Film, Television and Radio, and Music Industry.
Advertising and Digital Industry
The advertising industry is one of the most important sectors of the media
and entertainment industry. India is the 2nd fastest growing advertising
market in Asia. With the advent of game changers like Jio, advertising,
internet and digital industries have witnessed exponential growth.
Print Industry
The print industry has always been the most sought out after, by
individuals with a flair for writing and communicating. This well
established and age old industry is now evolving to be much more
advanced and digitised.
Gaming and Animation
The Indian Gaming and Animation Sector is getting bigger and better.
According to the KPMG India-FICCI Indian Media and Entertainment
Industry Report 2017, the Indian animation and VFX industry grew at
16.4 per cent in 2016 to reach a size of INR59.5 billion. This consistent
and speedy advancement of this industry, in synergy with technological
developments is resulting in a large number of jobs under various heads.
Film, Television and Radio
The Indian film and television industry is very popular among the creative
section of the job seekers. This sector particularly focuses on vocational
skills like hair styling, decorating (Set), prosthetic make-up, photography,
etc.
Industry investment
India is the fifth largest media and entertainment (M&E) market in the world.
More than 1800 films are produced every year in various languages in India. The
country has a large broadcasting and distribution industry, comprising of
approximately 900 satellite TV channels, 6,000 Multi-system operators and 60,000
local cable operators.

The government of India has been exceptionally supportive for the Media &
Entertainment as an Industry. The FDI limits in radio, including private FM has been
increased from 26% 49%.Private operators are allowed to own multiple channels in
a city, subject to a limit of 40% of total Channels in the city. Government has given
a free hand to Private Players to have new bulletins of All India Radio. FDI limit for
DTH satellite and digital cable network had been raised from 74% to 100% by the
Government. All restrictions from the FDI for up- linking and down linking of TV
channels have Been removed. The FDI of up to 100 % through the automatic rout
has been granted by the Government.

The Government of India has supported M&E industry’s growth by liberalising FDI
limits in various segments:
• FDI in Direct-to-home (DTH) satellite and digital cable network raised from
74% to 100%.
• In movies, FDI up to 100% through the automatic route
 • FDI investment up to 26% in an Indian firm dealing with publication of
newspaper and periodicals
• FDI investment up to 26% in Indian editions of foreign magazines
• FDI up to 100% in publications of scientific and technical magazines/
specialty journals/ periodicals
• 100% FDI allowed in Animation, gaming and VFX through automatic route.
The digital media space has been attracting substantial foreign investments in the
last few years and has been creating significant employment opportunities in India.
The government had announced an FDI limit of 26 percent in the digital media sector
including OTTs. It should consider increasing the FDI limit to 49 percent as this will
create a level playing field with companies operating in the news broadcasting
segment and attract greater foreign investment.
Recent investment
From April 2000 to September 2020, FDI inflow in the information and broadcasting
(including print media) sector reached US$ 9.37 billion.
• In February 2021, BookMyShow launched a pay-per-view video streaming
service—BookMyShow Stream. The platform aims to offer customers >2,000
movies by end-2021
• In February 2021, Vodafone Idea Ltd. (Vi) launched the pay-per-view
streaming service on Vi Movies and TV app to offer content as part of a
contract with Hungama Digital Media Entertainment.
• In February 2021, Inox Leisure expanded its footprint in Kolkata, West
Bangal; launched Metro INOX, a multiplex with digital features such as
paper-less ticketing & check-ins, and touchscreen-enabled interactive food-
ordering.
• In January 2021, Entertainment Network (India) has entered into a brand and
content licencing agreement with a Dubai-based radio broadcaster—Dolphin
Recording Studio LLC’ (DRS)—for use of the company’s trademarks and
content. The Hindi/Urdu language radio station is officially branded as ‘Suno
FM’ by DRS. It will now be rebranded on mutually agreeable terms and
conditions as ‘Radio Mirchi/Mirchi’.

FDI limit(in%)
 Source: PHD chamber of Commerce

Demand and supply to the market

The media and entertainment industry has “humongous” potential in India and can
grow up to four times to USD 100 billion in the next 10 years The world of work is
constantly changing. In many industries today, the most in-demand occupations or
specialties did not exist a couple of years ago, and the pace of change is set to
accelerate.
The Media and Entertainment (M&E) industry has multiple segments that combine
into one vertical; Movies/Cinema, Television, Music, Publishing, Radio, Internet,
Advertising and Gaming. Moreover, trends and drivers for each of the segments vary
across sub-segments, geographies and consumer segments. This makes the vertical
unique, since these sub-verticals compete, compliment and combine to fulfil the
ever-increasing demand for entertainment and information globally.
The industry also depends on multiple external factors/technology developments
like wireless, mobile, devices, digitization, internet access speeds, cloud storage,
consumer analytics and social media among others.
The industry has successfully adapted around these developments in every
generation. Since 1990s, digitization of content has changed creation and delivery
of music. Another disruption in 2000s, the rise of the internet was a game changer
for all the sub-verticals of the industry. Presently, social media has been instrumental
in shaping the present media & entertainment industry.
Traditionally the M&E industry has been a creative industry following technology
innovations and consumer demands. By its inherent nature, the industry is extremely
dependent on markets, cultures, languages and consumer segments. We have,
however, witnessed content that have bridged not only the language barrier, but also
worked across segments internationally. M&E is also unique due to its
psychological, emotional and aspirational appeal to its customers. Quality and
acceptance hence become extremely subjective to each individual. Traditionally,
content creators were the deciders on what to supply – the critical change in the new
era is that demand is completely consumer driven. The new age consumer not only
demands what they like, but also in the format they like, additionally, they also want
to customize the content to their preferences.

Industry growth drivers

About 80-odd years since then, today, the M&E sector has a lot to write home about.
Take, for instance, how quickly the sector has cottoned on to digitization and how
both new media and traditional media business models are complementing—not
competing—with each other. That’s true as much for India as it is for the rest of the
world. The Indian media segment is growing double the rate of global media. Credit
must be given to the rise of the Internet and a generation that hasn’t been fed the
staple diet of TV. For the millennials, the Internet is TV and online music is radio.
They consume news, opinions, and ideas online. And that has redefined the M&E
sector.
The Growth of Media & Entertainment Industry over the years has cottoned the
sector by increasing digitization which has influenced and touch the lives of people
across the world. The credit for doubling the media segment should be given to the
rise of the Internet and a generation that hasn’t been fed the staple diet of TV. The
consumption of news, opinions, and ideas online has redefined the Media
&Entertainment Industry.
The growth of Media & Entertainment industry mainly focuses on monetization of
emerging digital business models; strong regional opportunities and favorable
regulatory and operating scenarios across traditional business. Some growth drivers
are:
• Television and AGV (Animation, Gaming and VFX) segments are expected
to lead the industry growth, with opportunities in digital technologies as well.
The segment has produced over 1,600 hours of original OTT content, 1,800+
films and over 200,000 hours of entertainment television.
• Growth in the number and spread of multiplexes.
• Increasing liberalization through FDI and tariff relaxation.
• Measures such as digitization of cable distribution to enable the viewer’s
choice and higher growth.
• Rising incomes and evolving lifestyles, leading to higher demand for
aspirational products and services.
• Higher penetration and a rapidly-growing young population, coupled with
increased usage of 4G and portable devices, to augment demand.

Income factor driving growth

Apart from the impact of rising incomes and widening of the consumer base, will be
aided by expansion of the middle class; increasing urbanization and changing
lifestyles. The entertainment industry will also be benefited from continued rise in
the propensity to spend among individuals; empirical evidence points to the fact that
decreasing dependency ratio leads to higher discretionary spending on
entertainment.
Traditionally only advertising has been a key source of revenue for Media and
Entertainment industry, but off late revenue from subscription and value-added
services has also contributed significantly. With consumers willing to pay for
content and extra services, the subscription segment will play an important role in
the post digitization era.
Foreign Direct Investments into Media & Entertainment Industry-
Owing to the strong impetus for growth from the economic and demographic factors
coupled with some regulatory corrections, the sector also recently witnessed
increasing foreign investment inflows in most segments of the Media &
Entertainment industry, especially the print media. FDI inflows into the information
and broadcasting sector during April 2000 to December 2019 stood at US$ 8.71
billion. Demand growth, supply advantages and policy support are the Key drivers
in attracting FDI.

Major players in Industry

Zee TV Aaj Likhenge Kal (2017–present)

The Zee Entertainment Enterprises was incorporated in 1982 on November 25 and
obtained the Certificate of Commencement of Business on 5 th January 1983 as
Empire Holdings Ltd. In the state of Maharashtra. It was promoted by the Essel
group of companies and aimed at entering into the business of entertainment
software which finally took place in 1992.
 The company operates through content and broadcasting segment. The company
has a library, housing over 260,000 hours of television content. The company holds
rights to approximately 4,800 movie titles. The company's brands include Zee TV,
Zee Cinema, Zee Action, Zee Classic, Zee Anmol, Zee Cafe, Zee Studio, Zee
Salaam, Zing, ETC Bollywood, Zee Q and Zindagi.

In 2021 The company launched India’s first-ever music league, the Indian Pro Music
League (IPML), which was aired on Zee TV & ZEE5. This unique concept and the
league’s star-studded line-up attracted multiple advertisers to be a part of IPML as
official sponsors, including Maruti Suzuki India Ltd. & Hindustan Unilever Ltd.’s
Lifebuoy as co-presenting sponsors, Parle Products Pvt. Ltd.’s Parle G and Procter
& Gamble Hygiene and Health Care Ltd.’s Whisper as co-powered sponsors, Balaji
Wafers as Special Partner, Nilkamal Industries’ Nilkamal Mattrezzz, Asian Paints
Ltd.’s Ultima Protek and Life Insurance Corporation (LIC) as associate sponsors.

Sun TV network

Sun TV Network is an Indian mass media company headquartered in Chennai, Tamil

Nadu, India. It is a part of Sun Group and is one of Asia’s largest TV networks.
Established on 14 April 1992 by Kalanithi maran, it owns a variety of television
channels and radio stations in multiple languages .
Sun TV Network is engaged in producing and broadcasting satellite television and
radio software programming in the regional languages of South India. The company
currently operates 33 television channels in four South Indian languages
predominantly to viewers in India such as Malayalam Telegu Kannada and Tamil
and also to viewers in Sri Lanka Singapore Malaysia United Kingdom Europe
Middle East United States Australia South Africa and Canada. Sun TV the flagship
channel of the company is the largest TV channel in South India by penetration
viewership and ad revenues.

The other major satellite channels of the company are Surya TV Gemini TV and
Udaya TV. As on 31 March 2018 the Company holds 59.44 % of its paid up equity
share capital.Sun TV Network also has a large network pan India in the FM Radio
broadcasting segment along with its subsidiaries. It currently has 55 FM radio
stations operational in all important cities and towns in India. The company also
owns the Sun Risers Hyderabad Cricket Franchise of the Indian Premier League.
Sun TV Network is also into movie production and distribution business.

Dish TV
Dish Nahi Dishkiyaon

DishTV India is an Indian direct broadcast satellite service provider in India owned
and operated by the Zee Group. DishTV was launched by the Zee Group on 2
October 2003. It ranked # 437 and # 5 on the list of media companies in Fortune
India 500 roster of India’s largest corporations in 2011.

Dish TV was also voted India’s most trusted DTH brand according to the Brand
Trust Report 2014, a study conducted by Trust Research Advisory. On 22 March
2018, Dish TV completed a merger with Videocon d2h, creating the largest DTH
provider in India at the time of merger.
Company’s segments include DTH and teleport service, and infra support services.
It is also engaged in the business of broadcasting of other satellite
telecommunications activities. Its products include DishHD+ with Recorder, Dish+,
DishFlix and dish on wheels. It provides many kinds of set top boxes such as DISH
HD+ with recorder, which provides hi-definition signals for picture quality along
with the power to pause, record and rewind live television, and digital set-top-box,
which allows customers to record programs of their choice. Its services include
active services, movie on demand, multilingual services and miniplex. Its active
services include music active, games active and jobs active. Its multilingual services
allow customers to watch their programs in various languages, such as Hindi,
Kannada, Telugu, Marathi, Gujarati, Bengali and Urdu. It also offers do-it-yourself
services.

Entertainment Network India Limited

Entertainment Network India Limited (ENIL) is a subsidiary of Times Infotainment
Media Limited, the holding company promoted by Bennett, Coleman & Company
Limited- the flagship company of the Times of India Group, was incorporated in
1999.
The company was formed in June 1999 post the first phase of licensing. The
Information Broadcasting Ministry offered 108 frequency across 40 cities and ENIL
got the maximum of them. It started its operations with the launch of its services in
Indore on 4 October 2001.The company simultaneously started operations in seven
more cities. In the second phase the company got 25 more frequencies. That took the
count of total number of stations to 32.
The tag line of the brand is “Its Hot!” Mirchi is a Hindi word for chilly. While all
other radio brands were in English, ENIL came up with a Hindi brand name. The
brand name Mirchi was coined by Mr. Vineet Jain (Chairman, Times Group ).
ENIL with tie up with Bharti Airtel ltd have launched Mirchi Mobile. Under this
service Airtel customers could tune into Radio Mirchi channels of different cities.
This service allowed customers to tune into 12 stations of Radio Mirchi. This service
was later extended to Reliance and BSNL customers also.

T- series
Super Cassettes Industries Private Limited, doing business as T-Series,[note 1][1][2]
is an Indian music record label and film production company founded by Gulshan
Kumar on July 11, 1983 . It is primarily known for Bollywood music soundtracks
and Indi-pop music. As of 2014, T-Series is India’s largest music record label, with
up to a 35% share of the Indian music market, followed by Sony Music India and
Zee Music.T-Series also owns and operates the most-viewed and the most-
subscribed YouTube channel, with 186 million subscribers and over 157.8 billion
views as of June 26, 2021. While best known as a music label, T-Series has also had
some moderate success as a film production company.
T-Series and The Indian Performing Right Society Limited (“IPRS”) in a joint press
release announced on 31 march 2021 that Super Cassettes Industries Limited,
popularly known as “T-Series”, has joined the membership of IPRS.
This development is a watershed moment in the Indian Music Industry and will
provide a game-changing boost to the IPRS, the registered Indian Copyright Society
representing music composers, lyricists and owner publishers of music. T-Series
presence as a member will significantly benefit authors and music composer
members of IPRS. IPRS will now represent the T-Series music publishing catalogue
of lyrics and musical compositions and license a wide variety of platforms and
businesses which exploit music in India significantly enhancing the music
publishing ecosystem in India and vastly improving the ease of doing business for
numerous music licensees including broadcasters, digital services, telcos and various
other small businesses intending to license music in a seamless single-window
clearance for underlying works embodied in a sound recording or a music video

Government plans and policies

The Telecom Regulatory Authority of India (TRAI) is set to approach the
Ministry of Information and Broadcasting, Government of India, with a
request to Fastrack the recommendations on broadcasting, in an attempt
to boost reforms in the broadcasting sector. The Government of India has
agreed to set up National Centre of Excellence for Animation, Gaming,
Visual Effects and Comics industry in Mumbai. The Indian and Canadian
Government have signed an audio-visual co-production deal to enable
producers from both the countries exchange and explore their culture and
creativity, respectively.
On February 25, 2021, the government outlined the Information
Technology (Intermediary Guidelines and Digital Media Ethics Code)
Rules 2021 to establish a progressive institutional mechanism and a three-
tier grievance redressal framework for news publishers and OTT
platforms on the digital media.
In February 2021, the digital entertainment committee of the Internet and
Mobile Association of India (IAMAI) finalised a code of conduct to form
the basis for self-regulation code for OTT content. The code has been
endorsed by 17 OTT platforms including Netflix, Amazon Prime Video,
Disney+ Hotstar, ZEE5 and Voot.
In February 2021, Prasar Bharati (India) and PSM (the official State
Media of Maldives) inked an agreement to facilitate collaboration and
capacity building in the field of broadcasting.
From April 2000 to September 2020 , FDI inflow in the information and
broadcasting sector reached US$ 9.37 . Digital audio–visual content
including films and web shows on over-the-top (OTT) streaming
platforms, as well as news and current affairs on online platforms, have
been brought under the Ministry of Information and Broadcasting in
November 2020.
 New innovation and creativity of industry

Since spring 2020, the COVID-19 pandemic has been stimulating

structural challenges and trends that have long faced the media and
entertainment industry. And digital transformation trends for media and
entertainment industry focused on things like the increase in video ads, a
clamour for digital experience, and a rise in mobile data usage due to
such high demand. In 2021, all these things are likely to continue. Let’s
explore the biggest media and entertainment trends for 2021.
The digital media space has been attracting substantial foreign
investments in the last few years and has been creating significant
employment opportunities in India.
The media and entertainment (M&E) sector is a significant part of the
economy both in terms of its size and employment generation. During
FY 2020, the sector grew at a slower rate of 7.4 percent to reach Rs 1.75
trillion as compared to a growth rate of 13.2 percent in FY19.
The Indian M&E sector still derives a significant portion of its revenues
from advertising, though the pandemic has resulted in faster adoption of
subscription models. The growth in the M&E sector depends invariably
on the overall growth in the economy including the key sectors such as
FMCG, real estate, financial services, automotive and e-commerce,
which tend to contribute significantly towards the growth in advertising.

Increase FDI limits

The digital media space has been attracting substantial foreign investments in the
last few years and has been creating significant employment opportunities in India.
The government had announced an FDI limit of 26 percent in the digital
media sector including OTTs. It should consider increasing the FDI limit to
49 percent as this will create a level playing field with companies operating
in the news broadcasting segment and attract greater foreign investment.

Amend Section 72A of I-T Act

The post-pandemic economic environment will witness a lot of consolidation

in different segments of the M&E sector. Under the present provisions of the
I-T Act, in case of amalgamation of companies, losses of the amalgamating
company are allowed to be carried forward to the amalgamated company
only to a certain class of business activities. Section 72A of the I-T Act should
be amended to include M&E companies in the list of business activities.

Benefits to start-ups
The New Age digital media, gaming, VFX and OTTs segments are attracting
a lot of young minds and talent in India. Given the immense potential these
segments provide, the I-T Act should be amended to extend the concessions
under Section 80-IAC beyond 1 April, 2021. In addition, the government had
provided registered start-ups with an exemption from ‘Angel tax’ under
Section 56(2)(viib)of the I-T Act in case amongst other conditions the paid-
up share capital and share premium of such start-ups is less than Rs 25
crore. Given the significant capital raised by start-ups engaged in digital
media, the VFX and the gaming segment, the government should increase
this limit manifold.

It should also look at the long-standing demand of the M&E sector to defer
the taxation of ESOPs, which constitute a significant portion of
employee compensation, to transfer as opposed to exercise.
 Future strategies
We expect television advertising in 2021 to be close to 2019 levels,
growing over 20% to reach INR304 billion on the back of a line-up of
fresh sports content, regional channel rate increases and continued growth
of free television .
Subscription income would grow 5% to reach INR456 billion on the back
of fresh content, Several marquee sports events and pending Movie
releases, though ARPUs may face Regulatory hurdles
Television will go mass
Pay TV will continue to grow marginally as states Like UP, Bihar,
Rajasthan and West Bengal get Electrified However, more new users
will enter the Free TV Market as Free Dish channel count increases To
around 200 by 2022 (from 120 in 2019), Providing a low-cost
advertising opportunity to Marketers. Growth of unidirectional TV will
be far Outstripped by the growth of connected TVs, Which could reach
40 to 50 million connected Sets by 2025, on the back of 46 Indian cities
Which have a population of over a million each And a total population
of 122 million which Can be wired-up more easily for broadband22 As
well as telcos partnering with LCOs to drive Broadband services This
means that overall TV connections will keep Growing at a healthy pace
of over 5% per year to Cross 71% of Indian households by 2025.
Mass television will require different Content
As top-end subscribers gravitate to smart and Connected television sets
and the free television Audience crosses 150 million by 2025, the
Affluence of the average television audience will Reduce Consequently,
we expect content on television Will adopt to become more escapist and
mass in Nature. This fact can help control the increase in average
Content costs for television programming,

Regional television will drive ad rate Growth

Companies like Zee have already started to Segment the HSM market
with defined offerings For Punjabi audiences Regional ad rates have
been rising over the last Two years faster than HSM and we expect the
Same to continue .This will be driven by increase in regional Content
consumption on TV to 60% of total TV consumption, improved quality
and higher Quantity of content on regional channels.
End-consumer pricing will be Benchmarked to OTT
For television subscription to grow, it would need To remain cost
efficient as compared to the price Of [OTT + data] packages
Consequently, the impact of data prices and Bundling of popular OTT
packages will be the Benchmark against which television subscription
Will need to be maintained We also expect to see more [linear + digital]
Bundled products from broadcasters and DPOs In order to retain gross
reach of their products
Sports will become table stakes for broadcasters
The move of sports programming to prime-time (through day-night
matches, evening scheduling, etc.) can have an impact on GEC
viewership Having a sports product in the bouquet will become
increasingly important for broadcasters.
 Covid 19 impact
COVID-19 which has become a New Normal in the world of today has changed the
pattern of consumption and absorption of social media apps in India. While India is
under lockdown and following the norms of social distancing, the usage of social
media has been beyond giving information and escaping from boredom. It has been
a powerful weapon in the hands of doctors and police working on the frontlines
fighting the deadly virus.

Media is playing an important role in the COVID-19 response, even as it poses

challenges to the Industry. New research shows between 80% and 90% of people
consume news and entertainment for an average of almost 24 hours during a typical
week. On an average, under half of consumers Pay for media – 44% for
entertainment and only 16% for news.

The industry faces key challenges in the future of advertising and attention. The
COVID-19 pandemic is disrupting every industry. For the media sector, coronavirus
creates both opportunities and challenges. The spread of Covid -19 pandemic has
not only adversely impacted the human mankind but has Also shaken the complete
global ecosystem marking a significant impact on media supply, Consumption and
advertising around the world, leaving a daunting impact on the Indian Media And
Entertainment Industry. The Indian central and state governments have undertaken
several unprecedented and drastic Measures to curb the spread of the novel
coronavirus (“COVID-19”), characterized as a Pandemic by the World Health
Organisation. Specifically in the context of the media and Entertainment sector, the
lockdowns and prohibitions imposed by the governments, along with The stalling of
the film and television productions, sporting events and other industry events;
Shuttering of cinema halls and theatres across the country, and the ‘social distancing’
and ‘stay at Home’ advisories from authorities, have severely affected operations in
the media and Entertainment industry, resulting in reduced revenue prospects for
several businesses.

The onslaught of the COVID – 19 pandemic has changed the social lives of people
across regions and economic sections. The lockdowns and restriction on movement
of people has not only led to an increased demand for content but has also changed
content consumption patterns. While traditional and outdoor mediums of
distribution of content, such as cinema theatres, continue to be unavailable; the home
consumption mediums, such as television channels and OTT platforms have gained
even more popularity and viewership. However, despite the rise in viewership,
monetisation and revenues are hugely impacted, considering reduction in ad-spends
by other industries owing to the global recession.

Unlike other sectors, Entertainment and Media industries have also faced
unprecedented turbulence in the pandemic. According to F.I.C.C.I. and E&Y Report,
the industry fell 24% in the pandemic. Television channels must go on, and their
viewership witness spike, as people are primarily at their home and T.V. sets or
mobile phone was the only way to connect with the outer world. Unfortunately, this
did not result in a similar increase in revenue. Every segment has witnessed a decline
in revenue except digital and online gaming. According to the study of EY, digital
media had overtaken print, and online gaming had overtaken the film entertainment
segment in 2020.

Last year few movies had to pull out from the theatre and eventually released on the
O.T.T. platform. However, many big-ticket films from mainstream and regional
languages have also been delayed because various state governments ordered to
close the Cinema Hall. When the prime minister announced nationwide lockdown
sealed the fate of several projects, which directly impacted daily technician and
marginal workers employed in the art, commerce, and light department who were
dependent on industry for their livelihood.

Not only the film industry, but even the event industry has also suffered a lot, approx.
10 million people were affected by the crisis. M.I.C.E. (meetings-incentives-
convention-exhibition) is a 500,000-crore market including organised and
unorganised sector put together, and covid-19 is responsible for impacting job.

As per the study by EY, the media industry would grow 25 percent this year to reach
Rs 1.73 trillion, covering up for the loss suffered in 2020. The study says the market
would cross the Rs 2.2-trillion-mark by 2023, growing at a compounded annual
growth rate of 17 percent.

OTT entertainment platforms gain acceptance in Covid times Life will be marked as
the ‘pre-covid’ era and ‘post -covid’ era when travel and other restrictions forced
people to adjust to a new world and consumer behaviour is rapidly evolving. As a
result, there is an ever-increasing demand for the O.T.T. platform, which is
expanding to new demographics and locations. It coupled with the continued
proliferation of internet users with cheap data and smartphones led to a rise in
subscriptions.
 Bibliography

www.wikipedia.com
www.businessstandard.com
https://www.ibef.org/industry/media-entertainment-india.aspx
https://www.exchange4media.com/amp/announcements-news/t-series-joins-the-
indian-performing-right-society-limited-111978.html
https://www.makeinindia.com/sector/media-and-entertainment