The Indian Media & Entertainment Industry 2018: Trends & Analysis - Past, Present & Future

The Indian Media
& Entertainment
Industry
2018
Trends & Analysis - Past, Present & Future
Chaitanya Chinchlikar
Vice President – Whistling Woods International
Vice President – Mukta Arts Ltd
[email protected]
The Indian M&E Industry - High-volume, low-value.
The Indian Media & Entertainment Industry includes
Film, Television, Print, Digital Media, Animation & VFX, Gaming, Radio,
Music, Events & Live Media, Sports, Out-of-home, Theme Parks & other
• Valued at over US$ 22.7bn media.
2500
(1,47,300Cr INR) in 2017
Indian M&E Industry
which is ~1.15% of the
global M&E industry 2000
2033
11.6%
(estimated at US$ 1.95tn)
INR Billions
1658
12.6%
• Growth from 2016-21 (11.6%) 1500
1473
is going to be over 2x of the 1308
global M&E industry (5.1%) 1000
• Growth of M&E is outpacing

500
India’s GDP growth by 50%
0
2016 2017 2018 2020
Source: FICCI-E&Y & MPA-Deloitte Reports 2018
Industry Breakdown
100%
12 12 12 12
2% 2% 2% 2%
%
2% %
2% 2%
% %
3%
90% 4% 4% 5% 5%
4% 5% 5%
6%
80% 7% 8% 9%
11%
9%
70% 11%
10%
9%
60%
23%
21% 20%
18%
50%
40%
30%
45% 45% 44%

20% 42%
10%
0%
2016 2017 2018 2020
TV Print Film Digital Animation & VFX Live Events Gaming OOH Radio Music

Where is the growth coming from?

Contribution of M&E in India’s economy

Changing Customer Segmentation

The Indian Film Industry
250
200
11.9%
27.9%
INRBillions
150
100 192
156 166
122
50
0
2016 2017 2018 2020
• Largest in the world by films produced (~1,900) & tickets sold (~4bn).
• That said, in value terms, at US$ 2.3bn, it is less than the BO of Avatar.
• 2017 was phenomenal for the industry as its 27% growth was fueled largely
by overseas BO, almost all of the increase coming from China.
Film Revenues Breakdown
Overseas Revenues market-share has doubled in just 1 year. Almost all this growth
has come from China, which is still not a free market & hence this overseas BO
size may not be an annual feature.
100% 0%
The fact that digital/OTT 0% 1% 0%
5%
90% 5% 4% 5% 8%
revenues are not 12%5%
5%
13% 12%6% 11%
growing significantly is 80%
7%
an indicator that they are 70% 16% 15% 15%
not actively seeking out 60%
‘film’ type content & 50%
would prefer to 40%

70%
commission original 30% 62% 62% 61%
content. 20%
Home Video, like in the 10%
rest of the world, is dead. 0%

2016 2017 2018 2020
Domestic Theatrical Overseas Theatrical
Cable & Satellite Rights
Digital / OTT In-Cinema Advertising
Home Video
Tourism Impact – 3 Idiots & Leh
Value Added by film-

induced tourism
- 4x revenue of the
film
- 500x employment
generation

Hindi Industry needs introspection
- Hindi – top 50 films contributed 97.75% of NBOC 100Cr+ Films
- Screens & Average Ticket Price have both 10
increased steadily over the past few yrs. Yet, no 8 9

8 8
of 100Cr+ films have remained around the same.
6 7
- NBOC of the top 50 films have remained steady; 4
6
profitability has halved. 2

6
- There is a business-model review needed for the 0

2012 2013 2014 2015 2016 2017
Hindi Film industry.
No of Screens 35
60% 58%
Top 50 Hindi
30 54% Film7s0%
52% 60%
8000 7000
7000 25 50%
5500
6000
36% 35%
INR Billions
5000 4200 20 40%
3500
4000 3000
3000 15 30 30%
26 27 26 27
2000 1000 24
500 10 20%
1000
0
1994 - 2009 - 3 2012 - Ek 2013 - 2015 - 2016 - 2017 - 5 10%
Hum Idiots Tha Tiger Dhoom 3 Bajrangi Dangal Bahubali 0 0%
Aapke Bhaijaan 2012 2013 2014 2015 2016
Hain 2017
Koun Box Office Collection
Profitability %
The Indian Film Industry = ‘ Bollywood’
2017
While‘Bollywood’ is often a commonly used term to Hindi 265
define the Indian Film industry, Hindi films Tamil 310
accounted for only 14% of the 1,900+ films in 2017. Telugu 325
Kannada 210
Malayalam 150
English 150
Bhojpuri Punjabi Odiya
4% 2% 1% Bengali 100
Guajrati Others Hindi
Marathi 120
4% 4% 14% Guajrati 75
Marathi Bhojpuri 80
Bengali Tami
5%
6%
l
Punjabi 40
16% Odiya 30
English Others 80
8%
Telug 1,935
Malayalam Kannada u
11% 17%
8% Regional Cinema BO:
• Telugu growth at 47%
• Tamil de-growth by 5%
The South Indian Film industry accounts • Gujarati growth at 44%
for almost 50% of the films • Malayalam growth at 38%
The steady growth of Marathi
- The number of Marathi films had slipped into single digits in late 90s / early 2000s.
- Today, there are ~120 Marathi films annually.
- Discerning plots and
progressive subjects are Marathi Films Box office Collection
1200
balanced with more ‘mass’
genres of action & 1000
110
0
humour & romantic 800
INR Billions
comedies.
600
- Sairat became the 1 st
500
400
Marathi film to cross 100Cr 400 400 400
320 330
at the Box Office. 200
- ROI for Marathi films is 0
excellent, probably one of

the best among all of the
film industries

Hollywood in India – Good growth
- Between 100-150 Hollywood films Box Office Collection - Top 10
Hollywood Films
release in India annually. 6
- Hollywood films have never had 5

4.8
more than 10% market share of the
INR Billions
4
3
Indian M&E industry. 3.4
2
- Hollywood has achieved viewership 1 1.6
& revenue growth with the dubbed 0

2015 2016 2017
versions of their films doing well.
- With growing internet access and % Contribution of Dubbed Films
general awareness of global 70% 58%
60%
cultures, the cultural alienation 50%
45%
41%
33%
between Hollywood & the Indian 40%
27% 27%
30% 21%
cinema viewer is reducing. 20%
15%
10%
0%
2014 - 2014 - 2015 - Star 2015 - Ant 2015 - 2016 - 2016 - 2016 -
Guardians Captain Wars VII Man Avengers Finding Captain Jungle
of the America Age of Dory America Book
Galaxy Winter Ultron Civil War
Soldier
Film – Revenue Split
When you pay Rs 100 for a movie ticket, what is the split?
• Gross – 100% (Rs 100)
• Entertainment Tax – 30% (Rs 30)
• Exhibitor – 50% of balance 70% (Rs 35)
• Distributor – 50% of balance 70% (Rs 35)
• Producer(s) / Co-producer(s) – depends on what deal they have
made with distributor – Outright / MG / Commission / Distribution Fee
– and with each other.
• P&A funding – deal specific, but usually is Last-In-First-Out.
• Talent – actors / director – may or may not have sweat equity.

Exhibition – Needs to grow!
39,233 40,024 40,000 40,393
140 40,000
125
120
Screens/Million 35,000
100 30,000
80 25,000
60 18,195
60 20,000
40
15,000
40 10,635 9,951
16 10,000
20 10 8 4,723 9,530
5,000
0
US UK South China Brazil India -
2009 2013 2017
Korea
9,710 China India US
10,000 9,121
8,451 8.0 7.5
8,000
7,400
7.0
Domestic Box Office Size 6.5
6,780
5.7
6.0
6,000
4.7
5.0
Billion $
4,000 2,750 3.5
2,100 4.0
1,225 1,500
2,000 925 3.0
1.5 1.7
2.0 1.4 1.4 1.4
-
2009 2011 2013 2017 1.0
2015
-
2013 2014 2015 2016 2017
Multiplex SingleScreen
China India
Factoid:
Multiplex growth at 14%; F&B+Advertising growth at 21%. Source: FICCI-E&Y & MPA-Deloitte Reports 2018
Education
• Almost 70%+ people involved in the creative process of Filmmaking
are not formally trained / educated in film
• Despite having 17% of the world’s population and 9% of the world’s
economy, the Indian M&E industry is only 1% of the world’s M&E
industry
• We do not make films that appeal to the rest of the world and hence end
up leaving out a massive market for our content.
• We need 5-times as many
India USA
graduates each year trained in
Population 1.25bilion 300million
Film & Media
• Not just film, it affects other No of Films being made 1800+ 400+
areas of Media too, including No of world-class film 4-5 150-160
schools
TV & Journalism.
No of graduates from 300-500 15,000+
these schools each year

The Indian Film Industry - Key points
• Urgent and significant scale needed in Film education.
• Screens need to double in 5 yrs; Government intervention needed.
• Globally-merchandisable, home-grown IP(s) needed.
• Hindi industry needs to review its business model. If costs are going to
continue to rise, the films need to start doing better in overseas high-value
markets. Alternatively, be more cost efficient and viewer-relevant.
• Regional shows its importance – Telugu, Marathi, Gujarati, Punjabi
• Hollywood films box office growing (on the back of dubbed films), though
not as much as to threaten domestic content.
• Funding avenues, beyond the studios, grow with banks (IDBI, Kotak, YES),
Film Funds, Crowd-funding all becoming serious options.

The Indian Television Industry
• The most consistently 1200
TV
performing sector of the 1000
9.8% 862
Indian M&E Industry. 11.1%
800 734
• It is, presently, over 4 times 660
INRBillions
594
600
the size of the Indian Film
industry and is the largest 400
employer in the M&E space. 200
• The TV pipeline has almost 0

2016 2017 2018 2020
1500 MSOs,
60000+LCOs, 6 DTH Value headroom - Average subscription
operators, 2 IPTV rate for Cable TV / DTH:
• India – 3-4$ per TV per month
Operators and over 850
• US / UK / Europe – 60-100$ per TV per
channels.
month
Penetration Subscribers
200 1.5
0.5
26 31
150
49 52
Millions
100
100.5 99
50
0
2016 2017
Cable DTH Free TV HITS
Source: FICCI-E&Y & MPA-Deloitte Reports

2018
TV Channels, Viewership
1000 Viewership Others
900 Channels & Growth Kids 1%
Sports
3%
800 877 Music 6%
800 GEC 6%
700
600 Movie
News
500 550 News 7%
400
Music GEC
300 Movie
Kids
200 263 23% 54%
100 5 55 130 Sports
0
1990 1995 2000 2005 2010 2015
2017 Others
No of Channels
• India has added, on an avg, 4.25

• With over 75% of viewership of
channels/month for the last 10 yrs.
GEC / Movies, people still prefer
• India has over 380 news
fiction / escapism on TV
channels.
• The ones that don’t, are not
• Channel differentiation is weak.
watching TV anymore and have
switched to OTT
GEC – GRP v/s Profitability
Why do we see what we see on GECs?
How does programming get divided between building a viewer base and profitability,
thorough the application of the concept of ‘stick-ability’!
Long running soaps
High
Low-cost game /
Profitability performance based
reality shows
Mythological series
Low Recently released movies Finite

Fiction Series
Profitability Celebrity-based shows
Low Viewership High Vieweship

TV Revenues – Getting better, slowly!
• Growth in subscription revenue 600
TV Revenues - Split & Growth 494
expected to bring about more money 500
430
393
368
to the broadcasters which in turn 400 351
304
INR Bilions
300 267
will fund more innovative content. 243
200
• A 25%-odd revenue share by
100
broadcaster is still much lower than
0
what they should receive. 2016 2017 2018 2020
Subscription Revenue Advertising Revenue
600 25.70%
25.64% Subscription Revenue
25.60%
500
25.50%
400
25.40%
25.35%
300 25.30%25.30%
494
25.19% 430 25.20%
Bi 200 393
351 25.10%
lli
100
125 25.00%
o 90 99 109
0 24.90%
n 2016 2018
2017
s
2019 %
IN Paid by Consumers
Recd by Broadcasters
R
Indian Animation picks
up
• Broadcasters are willing to pay over
double for good quality Indian
Animated content as compared to
daily soaps / Hindi general
entertainment content, even though
this segment gets only 5.6% of the
viewership, as compared to 28.4%
for Hindi GECs.
• Also the fact that this segment
continues to be under-indexed
doesn’t bother broadcasters as this
content has long-tail revenue
• It offers repeat viewing value, multi-
language dubbing value and
merchandising value.

2018
Hindi GEC Fiction content changing. Slowly.
• GECs have finally embraced the
tele-series format with season-
based programming
• The value:volume ratio is reversed
in such programming as
compared to the daily / weekly
soaps.
• For the past 20-odd years, the
content has largely mirrored
American programming of the
70s-80s, with our soaps
comparable to content like the Bold
& The Beautiful, Santa Barbara,
Dallas, etc.

TV – Key Points
• Digitisation – increased revenue for the broadcaster, should lead
to more investment in content (& hence better quality content)
• Global proliferation of Indian-origin content is increasing, albeit for
the Indian diaspora only. This is THE BIG opportunity.
• Indian animation on TV is starting to matter.
• Hindi GECs are exploring new content programming & a changed
value:volume mix in revenue models.
• Targeted advertising is the next step

Digital – Growth galore!
250
• The Digital industry is expected to Digital 24.9%
224
double from 2017-20, both by 200
29.3% 151
way of market size & internet
INRBillions
150
119
users. 100
92
• India is already the 2nd largest 50
internet using country in the world.

0
900 2016 2017 2018 2020
772
800
700
600
500 462.12
400
312.32
300
200 149.01643.21618.6 3
1 09.5958.39
100 85 80.4879.13 67 64 63.060.42 57 56.754.851.848.21

Telecom Base – Data is the new Oil!
Tele-Density: 92.84.
Telecom Broadband Cost
Urban: 165.90, Rural: 59.05 Service market- (Rs/GB
Subscribers Provide share )
Telecom r
(As of March
Jio 44% 3.55
Compan 2018)
Bharti Airtel 304,191,806 Airtel 20% 5.08
y Vodafone 14% 5.64
Vodafone 222,697,757
Idea 10% 5.99
IDEA 211,209,603 BSNL 6% 4.58
Jio 186,560,828 Others 6% 4.85
90
BSNL 111,679,483 80
80
Monthly Cost
Aircel 74,152,299 70
60
Telenor 37,984,582 50 45
Tata 31,189,225 40
30
MTNL 3,557,060 20
7
US$
10 3
Reliance 185,968 0
US India
TOTAL 1,183,408,611 Cable
OTT

The Digital Business – A BLITZ of growth!
969
1000 Internet Users 250.0 Digital Industry Revenue
900 821 203.6
800 690 200.0
700 575 145.5
Milions of Users
600 150.0
INR Billions
475 114.9
500 390
89.2
400 100.0
300
200 50.0 20.1
100 22 24 26 29 32 35 2.6 3.9 5.7
0 -
2016 2017 2018 2019 2020 2021 2016 2017 2018 2020
Wired Wireless Advertising Subscription
100% 2% 3%
Internet Users 90% 10% 6%
500 16%
80%
File Sharing
400 70% 39%
429
400
Users (millions)
60% Streaming
300 Audio
295 50% Web & Other
200 40% Data
186 75% Video
30%
100 49%
20%
0 10%
2017 2021
0%
Urban Rural 2016 2021

Massive increase in India’s online video audience
India’s
online
video
audience
to
double
in 3 yrs.
Time English
Spent 7%
on
Digital
Content
Other Hindi
Regional
Languages 63%
30%

Global Digital Platforms

Indian Digital Platforms

2018
What Apps are people downloading?
Social Media still #1
Entertainment is the
fastest growing
segment

Opportunities in Digital
• Digital is no more a ‘also’ platform. It is the present & the future. Content
consumption modes & patterns are changing with a large number of sub-18-yr-olds
finding their ‘stars’ online.
• ANALYTICS & TARGETING – Audience analytics, Content-based analytics,

Predictive analytics, Campaign analytics
• Digital is a writers’ medium - New IP Creation
• Look beyond digital as JUST a 3rd screen with limited censorship
• Multi-formatting ALL content to include Digital platforms (15% extra effort)
In any industry, building volume is hard. India already has the volume and is
likely to be the largest digital market (free) by 2021-22. We now need to
build value to each unit of volume. Only way to do it is quality.

Content vs Experiences
Technology-enabled experiences in content consumption are
what the consumer is seeking out.
While the ‘idea’ is important, what is equally important is the
consumption experience.

Content structure for various platforms
Film / Theatrical TV Digital VR/AR
Platform Fixed frame, large Fixed frame, small Fixed frame, mini No fixed frame
Viewing screen, Captive screen, Non- screen, Non- (FRAMELESS),
Details Community captive Family / captive Captive Individual
viewing Individual viewing Individual viewing
viewing
Duration & 110-180 mins 22–44 mins 3–60 mins ???

Structure 60-100 scenes 8-10 scenes 2-20 scenes (15 mins – health
1-8 shots / scene 1-20 shots / scene 1-4 shots / scene advisory)
2D & 3D 2D 2D 2D & 3D
Fiction Primarily stand- Primarily serial, Primarily serial, ???

Content alone, marginally marginally stand- marginally stand- (expected to be
Structure serial alone alone similar to Digital)
USP Audio-visual Story & Character High concept, ???

narrative spectacle development writing-focused, (Immersive &
pace is critical interactive is all we
know currently)
So rce: FICCI-E&Y & MPA-Deloitte Reports
u 2018
Virtual Reality / Augmented Reality
• AR introduces virtual content into the real world, through a mechanism that takes
digitally created content / user experience and overlays it on top of the real world
(existing reality) in order to enhance the user’s reality.
• VR transports the user into an alternate world. VR is an artificial, digitally-generated
recreation of a world which may or may not resemble reality.
• VR’s goal is to immerse the user by stimulating senses of sight & sound and in
some cases – senses of touch & smell also.
• AR adds layers to the real world, VR blocks it out entirely.
• AR is designed to be used in public, VR in private.
• AR can be social, VR may create new social interactions in virtual spaces.

The Gartner Hype Curve for Emerging Technologies

2018
Platforms
There are 5 viewing platforms presently. On a viewership & value
matrix, this is where are they now & where are they likely to be 5
yrs from now.
Theatrical
360 VR
High
Content
Value Premium DVOD

(Netflix, Hulu,
Amazon Prime,
etc)
Free(mium) Digital Platforms C&S / DTH

(Youtube / ALT / Hotstar, Voot,
Low Viu, etc
Value
Note:
This is India-specific
Low Volume High Volume

Tech Pipeline – No standardisation yet
Acquisition Production / Distribution Playback / Viewing

Post-production
• 2-22 camera • Stitching • Internet Head Mounted
rigs • Edit + Effects Streaming (very Displays:
• Removable / • Finishing / low res) • HMDs for
Non-removable exporting to • Tethered to cellphones
camera rigs required format server • Google
• Single 360 • Download video Daydream
video feed / & playback • HTC Vive
Multiple feeds to • Oculus
be stitched Rift
• Local / Cloud • Samsung VR
Stitching Gear
• Sony Playstation
VR
Inside-out 360deg
displays
VR content guidelines:
What do we know, What have we learnt?
• Don’t bore people! Don’t confuse people! Don’t make people vomit!
• VR content is not a treasure hunt!
• If a story can be told as effectively in any other format, it should be.
Just because something can be done in 360VR, doesn’t mean it
should.
• Contextually 360deg. Content-wise between 160-210deg.
• Directing Attention is the new craft to be introduced in the
filmmaker’s learning
•Solving people’s FOMO is the big challenge
Much more to come...

The distribution problem / solution in VR
Bandwidth vs Latency  Sweet Spot |

Viewport+Extra
Full 360 Image Viewport + extra
Viewport Needs 20ms
Viewport 12% - 14%
photon to
motion
latency
Very low
Very high Latenc latency
bitrates for requirement
Hyig
Full 360 Latency for
h
Viewport
Low Latency only
Sweet Spot
Reception of
Viewport++ Reception of a
Full 360 Viewport only
Bitrate
High Bitrate
Low Bitrate
VR’s expected journey from 2018-2021
• The first generation of Cinematic VR content creators to emerge
• Stabilisation of VR workflow using the OMAF / HEVC / MPEG-H codecs
• Cameras / acquisition rigs to get better. Better sensors, lensing, and heat
& data management.
• Distribution to settle down on a Viewport+Extra base
• Headsets to get better
• 4 business models / consumer segments to emerge:
o Headset + Mobile
o Wireless connected headsets
o Tethered to server headsets
o Headset + swivel chair + haptic feedback

Gaming
80
• Grew over 15%, on the back of Gaming 68
70
mobile gaming. 60 27.5%

50
INRBillions
• There is an obvious correlation 40 15.4%
40
30
between in smartphone + internet 30 26
growth and gaming growth. 20
10
0
2016 2017 2018 2020
As of 2018, Grand Theft Auto 5

became the single most profitable
piece of media of ALL TIME
Produced at a cost of US$265mn, it
has aggregate revenues of over
US$6bn as of April 2018.

Global Snapshot - Gaming & E-sports
• In the US, Gaming accounted for over 50% of the total Media &
Entertainment Market share in 2017. India was 2%. There is enormous
potential for Gaming as an industry.
• The global e-sports market, which is US$ 655mn in 2017 is expected to
reach US$ 900m+ in 2018 & US$ 1.65bn by 2021.

Animation, VFX & Post-Production
• The industry has shown growth / will 120 114
continue to grow on the back of strong 100

20.4%
80
VFX / post-prodn growth, but Animation 80
24.1% 67
INRBillions
has not grown as much. 60 54
• Lack of original IP is the major reason 40
of low growth in Animation. 20
• Cost arbitrage is the key driver for 0

2016 2017 2018 2020
animation services. Cost of producing a
100%
full-length animated film in the US is 90%
US$ 71-106 mn, in India is US$ 13-22 80% 23.2 31.3 40.6
70% 63.5
mn, a saving of approximately 80%. INR Billions 60% VFX
50%
• More 3D films = more conversion work 40% 15.9
18.3
Post-
20.9 Prodn
26.9
= more post-prodn revenues for India. 30%
Animation
20% Services
15.0 17.0 18.9
10% 23.2
0%
2016 2017 2018 2020

VFX & Post-Production
Increased high-end domestic content
(Film / TV / Digital) has caused
increased demand for VFX / post-
production services
Good News - India

has gone from
NIL to
‘Emerging’ in the
Conceptualisaton
stage of global
VFX films
Live Events
120
• Still largely unorganised Live Events 109
18%
• Licensing & Taxation issues 100
77
• IPs generate a disproportionately high 80
16.1%
INRBillions
65
56
proportion of revenue 60
• Corporates account for 75% of the 40
organised industry’s revenues 20
0
2016 2017 2018 2020

Radio 50
45
40
Radio
8.6%
34
35 8.3%
INRBillions
28
• Growth has been volume driven – 30
25
24
26
more stations in more towns / cities. 20

15
10
• India lacks a listenership 5
0
measurement system. 2016 2017 2018 2020
What’s New?
Transit Radio
Mirchi – Delhi Airport
Red FM – Shatabdi
Radio City – Lucknow
Metro

Music
• Over 50% of Indian web users access 25
Music
unlicensed content. 20
10.6% 18
8.3%
• Limited high-quality, full-time, structured
INRBillions
15 14
13
career-education in Music. 12
10
• Growth is coming from streaming
5
Source 20.0% 0
2016 2017 2018 2020
Hindi
20.0% 60.0%
Regional
International Consumption Breakdown
9%
15%
Digital
11% Physical
65%
Syndication
Public
Performanc
e

Sports
• Sports is one of the
largest content
providers to the
broadcast, live events
& digital industries.
• BCCI continues to be
the most efficient &
productive sports body
in India.
• Kabaddi warrants
multiple case studies.
The ‘sports-watcher
stereotype’ has been
broken with 35%+ female
& 40%+ rural viewership
for India’s top 3 leagues.

Theme Parks
• Current size Rs 29.3 billion. Expected to grow to Rs 70
billion by 2021 with a 19.1% CAGR.
• Destination tourism built around Theme Parks yet to
materialise in India
• Evolution:
o 1980s – Appu Ghar
o 1990s & 2000s – Esselworld
o 2010s – Imagica & Wonderla
o 2016 – INR 300 bn+ investment committed for 10 parks
across India

Jobs in M&E
• Direct employment is ~7.5L. Indirect is ~23.5L
• TV is the largest employer (~5L), followed by Film (~2.5L).
• As per the NSDC, by 2022, the Media & Entertainment industry would be
requiring 16.5 lakh professionals, ~85% of these in the Film, TV & digital
verticals.
• The media industry as a whole still lacks sufficient world-class training
facilities to enable professionalism and best practices.
• Significant government-intervention and private investments will be
needed to correct this imbalance.

What are the pain-points of the Indian M&E Industry?
• M&E Education & Training

o Of the 4 lakh people employed, nearly 75% involved in content creation have
no formal training.
o Very few world-class Film & Media institutes with a combined output of
approx 500 graduates a year, with 200 of them being from a single institute.
• Lack of original Intellectual Property creation leading to lack of a globally
merchandisable brand.
• Innovation – Lack of original formats or technical / narrative innovation.
• Piracy - Affects every sector of the industry & causes nearly
35% revenue reduction

The Great Opportunities in M&E
In the M&E industry, building volume is hard. India already
has the volume. We now need to build value to each unit
of the already existing volume.
This can only be done by enhancing quality.
The big opportunities in Indian M&E are:
• Education in M&E
• IP creation - interoperable IPs across Film, TV, Digital
• Content that travels well globally (to non-diaspora viewers)
• Screens for Film

Thank You!
Chaitanya Chinchlikar
[email protected]
Vice President - Business Development, Whistling Woods

International Chief Technology Officer, Whistling Woods International
Vice President – Strategic
Development, Mukta Arts Ltd

The Indian Media & Entertainment Industry 2018: Trends & Analysis - Past, Present & Future

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The Indian Media & Entertainment Industry 2018: Trends & Analysis - Past, Present & Future

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The Indian Media

is going to be over 2x of the 1308

global M&E industry (5.1%) 1000

• Growth of M&E is outpacing

45% 45% 44%

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

not actively seeking out 60%

‘film’ type content & 50%

would prefer to 40%

Home Video, like in the 10%

rest of the world, is dead. 0%

Value Added by film-

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

increased steadily over the past few yrs. Yet, no 8 9

profitability has halved. 2

- There is a business-model review needed for the 0

humour & romantic 800

- ROI for Marathi films is 0

excellent, probably one of

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

- Hollywood films have never had 5

& revenue growth with the dubbed 0

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

• It is, presently, over 4 times 660

employer in the M&E space. 200

• The TV pipeline has almost 0

Cable DTH Free TV HITS

Source: FICCI-E&Y & MPA-Deloitte Reports

• India has added, on an avg, 4.25

Long running soaps

Low Recently released movies Finite

Low Viewership High Vieweship

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Subscription Revenue Advertising Revenue

Source: FICCI-E&Y & MPA-Deloitte Reports

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

double from 2017-20, both by 200

• India is already the 2nd largest 50

internet using country in the world.

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Wired Wireless Advertising Subscription

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

Source: FICCI-E&Y & MPA-Deloitte Reports 2018

• ANALYTICS & TARGETING – Audience analytics, Content-based analytics,

• Digital is a writers’ medium - New IP Creation

• Look beyond digital as JUST a 3rd screen with limited censorship

• Multi-formatting ALL content to include Digital platforms (15% extra effort)

Source: FICCI-E&Y & MPA-Deloitte Reports 2018