India : Entertainment Sector Report_August 2013

Third largest TV market
• With 146 million television households in 2011, India stood as the third largest television
market after the U.S. and China
One of the largest
broadcasting market
• India has one of the largest broadcasting industries in the world with approximately 800
satellite television channels, 245 FM channels and more than 100 operational community
radio networks
Rising no. of
subscribers
• The total subscriber base for Indian television industry is expected to increase to 173
million by 2016 from 95 million in 2009
Fast growing Animation
industry
• The Indian animation industry is expected to expand at a CAGR of 15.8 per cent to
USD1.4 billion by 2017 from USD650 million in 2012
Source: Planning Commission, Aranca Research

• The engineering sector is delicensed;
100 per cent FDI is allowed in the
sector
• Due to policy support, there was
cumulative FDI of USD14.0 billion into
the sector over April 2000 – February
2012, making up 8.6 per cent of total
FDI into the country in that period
Growing demand
Source: KPMG report 2012, Aranca Research
Notes: AGV - Animation, Gaming and VFX, VFX - Visual Effects, M&A - Merger and Acquisition,
CAGR - Compound Annual Growth Rate, FDI - Foreign Direct Investment, E - Estimate
Robust demand
• Rising incomes and evolving
lifestyles have led to higher
demand for aspirational products
and services
• Higher penetration and a rapidly
growing young population coupled
with increased usage of 3G and
portable devices would augment
demand
Attractive opportunities
• Industry is set to expand at a
CAGR of 15.1 per cent over
2012–17, one of the highest rates
globally
• Television and AGV segments
expected to lead industry growth;
opportunities in digital
technologies as well
Policy support
• Policy sops, increasing FDI limits
• Measures such as digitisation of
cable distribution to improve
profitability and ease of institutional
finance
• Increasing liberalisation and tariff
relaxation
Increasing investments
• Higher FDI inflows
• Increasing M&A activity
• More big-ticket deals such as Walt
Disney- UTV, Sony-ETV and Zee-
Star
• Entry of big players across all
segment of industry
2012
Market
Size:
USD15.1
billion
2017E
Market
Size:
USD30.5
billion
Advantage
India

Source: KPMG Report 2013, Aranca Research
Notes: VFX - Visual Effects
Entertainment
Television
Gaming
Animation
& VFX
Out Of
Home
(OOH)
Music
Digital
Advertising
Radio
Films
Print

Market size (USD billion)
Note: F - Forecast, CAGR - Compound Annual Growth Rate,
* In Indian rupee terms
The entertainment industry is expected to develop at a
CAGR of 15.1 per cent during 2012–17
The total market size of the entertainment industry
expanded to USD15.1 billion in 2012 from USD9.2 billion in
2006, at a CAGR of 10.9* per cent
The industry recorded one of the highest growths in the
world in 2010 (11.0 per cent); the growth in 2012 picked up
even further to reach 12.6 per cent
9
11 12 12
14 15 15
17
19
23
26
31
0%
5%
10%
15%
20%
0
5
10
15
20
25
30
35
2006
2007
2008
2009
2010
2011
2012
2013F
2014F
2015F
2016F
2017F
size (USD Billions) Growth (RHS)

Size of major industry segments (2012)
The entertainment industry continues to be dominated by the television segment, accounting for 45 per cent of market
share in terms of revenues, which is expected to grow further to 51.0 per cent by 2017E
Television, print and films together account for 86 per cent of market share
Size of major industry segments (2017)
45%
27%
14%
2%
1%
2% 4%
2%
3%
Television
Print
Films
Radio
Music
Out of Home
Animation and VFX
Gaming
Digital Advertising
51%
20%
12%
2%1%
2% 4%
3%
5%
Television
Print
Films
Radio
Music
Out of Home
Animation and VFX
Gaming
Digital Advertising

Growth of television industry (in 2011)
Note: E - Estimates
With a growth rate of 15.8 per cent in 2011, Indian television industry stood second when compared with BRIC and other
major developed economies
Currently, the television industry in India derives the major share of its revenue from subscription segment (65 per cent)
and the rest from advertising (35 per cent)
The revenue share from subscription segment is expected to reach 69 per cent by 2016, driven by higher penetration of
subscription television
Television segments
2.1%
3.6%
10.6%
14.4%
15.8%
22.5%
United States
United
Kingdom
China
Russia
India
Brazil
35% 31%
65% 69%
2011 2016E
TV advertising Subscription revenues

Industry size of emerging segments (USD millions)
Notes: VFX- Visual Effects; F - Forecast,
CAGR - Compound Annual Growth Rate
Radio, Animation & VFX, Gaming and Digital advertising
are also emerging as fast growing segments
The total market share in terms of revenue is expected to
reach 15 per cent by 2017 from 11 per cent in 2012
During 2012–17, these segments are expected to develop
at a CAGR of:
Digital advertising (41.6 per cent)
Gaming (28.8 per cent)
Radio (21.2 per cent)
Animation (20.1 per cent)
0
20
40
60
80
2007
2008
2009
2010
2011
2012
2013F
2014F
2015F
2016F
2017F
Radio Animation and VFX
Gaming Digital Advertising

Advertising revenue forecast
Note: OOH - Out Of Home, F - Forecast
Total spending on advertising across all media stood at USD5.5 billion, accounting for 41 per cent of the total industry
revenue in 2011
Advertising revenue is expected to touch USD10.8 billion by 2016 from USD5.5 billion in 2011
Print is the largest contributor, accounting for 46 per cent of the advertising share
Advertising revenue share (2011)
39%
46%
6%
5%
4%
TV
Print
OOH
Digital Advertising
Radio
5.0
5.1
4.9
5.7 5.5 6.1
7.1
8.1
9.3
10.8
-10%
-5%
0%
5%
10%
15%
20%
0
2
4
6
8
10
12
2007
2008
2009
2010
2011
2012F
2013F
2014F
2015F
2016F
Total revenue- (USD billion) Growth (%) -RHS

Source: Company Websites, Business Week, KPMG report 2012 Aranca Research
Notes: M&E - Media and Entertainment
Company Business description
Star India Pvt Ltd
• Fully owned subsidiary of News Corporation
• Portfolio includes 33 channels in seven languages across various categories such as soaps, reality, news and films
• Also manages a portfolio of business ventures including DTH operator Tata Sky, cable system Hathway, channel
distributor STAR Den, news channel operator MCCS, the film production and distribution business Fox STAR Studios
India and STAR CJ Home Shopping
Zee Entertainment Enterprises Ltd
• Fully owned subsidiary of Essel Group and first listed media company in India
• One of the largest producers and aggregators of Hindi programming in the world
• An estimated reach of more than 670 million viewers across 168 countries
• Pioneer of television entertainment industry in India; launched Zee TV- the country’s first Hindi satellite channel
• Range of businesses across the value chain in the M&E industry
Multi Screen Media Pvt Ltd
• Fully owned subsidiary of Sony Pictures Entertainment
• Comprises of Sony Entertainment Television (SET) and SAB, leading Hindi general entertainment television
channels; MAX, a movies and special events channel; and PIX, a channel that airs Hollywood movies
• Its programming spans across various genres including drama, reality, comedy, horror, Bollywood and live events

Source: Company Websites, The Times of India, Aranca Research
Notes: CAGR - Compound Annual Growth Rate, FY - Financial Year
Bennett, Coleman and Co Ltd
• Largest media conglomerate in India
• Publishes world’s most widely circulated English broadsheet daily ‘The Times of India’ and second most widely
circulated financial daily ‘Economic Times’
• Other prominent publications include magazines such as Zigwheels, Filmfare, Femina and Top Gear and Hindi dailies
such as Navbharat Times and Sandhya Times
• The group has also diversified into radio and television business
HT Media Ltd
• Hindustan Times is the second most widely read newspaper with 3.8 million readers in India
• Other prominent publications include the business daily Mint and the Hindi daily Hindustan
• The group has also forayed into many adjacent businesses such as print and digital services, internet, radio, and
events and marketing solutions
• The company’s job portal www.shine.com has over 8.5 million registrations
Living Media India Ltd
• India Today and Readers Digest are among India’s most circulated magazines
• Other prominent magazine publications include Business Today, Cosmopolitan, Time, Golf Digest, Design Today,
Money Today and The Chartered Accountant
• The group has interests in various other businesses such as radio, events, printing, music, television, education and
publishing

Source: Company Websites, Business Week, Aranca Research
Yash Raj Films Studios
• The only privately owned film studio in India
• Apart from film production, the company has also expanded into distribution of films and music, home entertainment,
production of television software, ad films, documentaries and private label music production
• The company launched a youth films studio Y-Films in 2011 to connect with the large young population of the country
Eros International Media Ltd
• Strong distribution network spanning across 50 countries and over 27 dubbed foreign languages
• One of the largest content owners in the industry having a film library of over 2600 films, thus ensuring stable, recurring
cash flows
• The company is diversifying into Marathi, Punjabi, Tamil and other regional language films to leverage upon the
growing demand for regional cinema
Red Chillies Entertainments Pvt Ltd
• Founded in 2002 as a film production house, the company has branched into TV shows and advertisement, visual
effects and multi-media production equipment leasing
• Its latest venture 'Ra.one‘ is Bollywood's most expensive movie and very first Sci-fi movie
• It also owns the Kolkata Knight Riders cricket franchise in the Indian Premier League

Source: Company Websites, Business Week, Aranca Research
Music Bharti
• A wholly owned subsidiary of Bharti Airtel
• The largest music company in terms of revenues
• Provides mobile-based value-added music services (VAS) such as hello tunes, call back tunes, music on demand,
Mirchi mobile and Airtel radio
Saregama India Ltd
• The company owns the largest music archives in India, one of the largest in the world
• It uses the music labels Saregama, RPG Music and HMV
• The company is making efforts to digitise its catalogue to make inroads into the digital music market and counter
declining physical music sales
Super Cassettes Industries Ltd
• The company owns the rights to over 2,000 video and 35,000 audio titles, comprising of nearly 24,000 hours of music
• The company has diversified into film production, consumer electronics and mobile phones manufacture
Tips Industries Ltd
• The company owns 3,500 titles of which a minimum of 25 have been sold over a million copies, with another 10
selling over 10 million copies
• Since 1981, Tips has the highest number of gold and platinum discs to their credit in India
• Tips also holds soundtrack copyrights of over 50 Hindi movies and has also ventured into film production
• The company’s distribution channel serves more than 1,000 wholesalers across country

Television
• Television penetration in India is at about 60 per cent and penetration is expected to reach
70 per cent by 2016
• The government announced the digitisation of cable television in India in four phases,
which would be completed by the end of 2014
• The direct-to-home (DTH) subscription is growing rapidly driven by content innovation and
product offerings
• The subscription share to the total revenue is expected to grow to 69 per cent by 2016
Print
• Considering the huge potential in regional print markets, national advertisers are entering
these markets to increase their advertising share
• Increasing income levels and evolving lifestyles have led to robust growth in niche
magazines segment
• Increasing literacy levels leading to a rise in the readership base
Film
• Growth to be fuelled by multiplex chains, increasing footfalls of consumers and higher
quality content
• Increasing share of Hollywood content in the Indian box office
• 3D cinema is driving the growth of digital screens in the country
• The Indian film industry is largest producer of films globally with 400 production houses
and corporate houses involved in film production
Source: KPMG Report 2012, Economic Times, Aranca Research
Notes: DTH - Direct to Home, 3D - Three Dimension

Animation, Gaming and
VFX (AGV)
• Growing focus on the ‘kids genre’ and rise in dedicated channels for them
• Surge in 3D/HD animated movies in theatres and use of animation and VFX in TV
advertising and gaming
• Growing outsourcing of VFX and gaming to India is due to cost effectiveness of Indian
players
• Content localisation such as T20fever.com and ICC World Cup 2011 games
Radio
• Increasing FM enabled radio phones, mobiles and car music systems
• During 2010, there were a total of 245 channels operating across India
• Government introduced favorable guidelines for expansion of the 3rd phase of FM radio
broadcasting services, which will bring 294 towns and 839 stations under FM coverage
• Liberalisation of policy on community radio took place in 2008 which led to 29 community
radio stations getting operational in the country
Music
• The Indian music industry is a consortium of 142 music companies
• Players are looking at new ways and mediums to monetise music, such as utilising social
media to promote music
• Mobile phones, iPods and mp3 players – devices that enable music on-the-go – are
becoming the primary means to access music
• Digital music on mobile continues to drive music industry revenue
Source: KPMG Report 2012, Economic Times, Aranca Research

Source: Aranca Research
Growing demand
Inviting Resulting in
Growing demand Increasing investmentsPolicy support
Higher real
incomes and
changing lifestyles
Falling prices,
increasing
penetration
Growing young
user base with high
access to
technology
Policy sops,
favourable FDI
climate
Policies to enhance
growing segments
like animations and
gaming
Increasing
liberalisation,
tariff relaxation
Higher FDI inflows
Increasing M&A
activity
Increasing
participation of big
players

Rising per-capita income in India (USD)
Source: IMF, Aranca Research,
Note: CAGR - Compound Annual Growth Rate
Incomes have risen at a brisk pace in India and will continue
rising given the country’s strong economic growth
prospects. Nominal per capita income is estimated (IMF) to
have recorded a CAGR of 11.2 per cent over 2000–12
Rising incomes, with its positive impact on the consumer
base, will be the key growth driver for the entertainment
industry (across the country)
As the proportion of ‘working age population’ in total
population increases, per capita income and GDP are
expected to grow higher -5%
0%
5%
10%
15%
20%
25%
30%
300
600
900
1,200
1,500
1,800
2,100
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011F
2012F
2013F
2014F
2015F
2016F
2017F
Gross domestic product per capita, current prices Growth

Indian residents shifting from low-income to high-
income groups
Source: McKinsey Quarterly Report, Aranca Research
Apart from the impact of rising incomes, widening of the
consumer base will also be aided by expansion of the
middle class, increasing urbanisation, and changing
lifestyles
The entertainment industry will also benefit 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
1 3 72 6
17
12
25
29
35
40
32
50
26
15
2008 2020 2030
Globals (>18412.8) Strivers (9206.4-18412.8)
Seekers (3682.5 - 9206.4) Aspirers (1657-3682.5)
Deprived (<1657)
Million Household,100%

Television
• Digitisation of the cable distribution sector to attract greater institutional funding, improve
profitability and help players improve their value chain
• FDI limit increased from 49 per cent to 74 per cent in cable and DTH satellite platforms in
2012
• No restriction on foreign investment for uplinking and downlinking of TV channels other
than news and current affairs
Film
• Co- production treaties with various countries such as Italy, Brazil, UK and Germany to
increase the export potential of the film industry
• Granted ‘industry’ status in 2001 for easy access to institutional finance
• FDI upto 100 per cent through the automatic route has been granted by government
• Entertainment tax to be subsumed in the GST; this would create a uniform tax rate regime
across all states and will also reduce the tax burden
Radio
• FDI limit in radio increased to 26 per cent from 20 per cent in 2011
• Private operators allowed to own multiple channels in a city, subject to a limit of 40 per
cent of total channels in the city.
• Private players allowed to carry news bulletins of All India Radio
• Further boost may be given to the radio sector by charging licence fees on the basis of
‘net income’ so as to provide relief to loss making radio players
Source: Aranca Research,
Notes: FDI – Foreign Direct Investment, FII – Foreign Institutional Investors

Print
• FDI/NRI investment upto 26 per cent in an Indian firm dealing with publication of
newspaper and periodicals
• FDI/NRI investment upto 26 per cent in publications of Indian editions of foreign
magazines
• FDI/NRI investment upto 26 per cent in publications of scientific and technical magazines/
specialty journals/ periodicals
Music
• Parliamentary approval on the Copyright Act (Amendment) Bill, 2012, which strengthens
the royalty claims of musicians, lyricists and others in the field
• Policies are adopted against digital piracy and file-sharing; steps have been taken to block
illegal music websites
• Adoption of revenue sharing model by Copyright Board requiring FM radio companies to
share 2 per cent of their net advertising revenues with music companies
Animation, Gaming and
VFX (AGV)
• 100 per cent FDI allowed in the sector through automatic route provided it is in compliance
with Reserve Bank of India guidelines
• The government has craved out a National Film Policy to tap the potential of the film
sector mainly for the animation segment
Source: PwC India Entertainment and Media Outlook 2011, KPMG report 2012, Aranca Research

Source: Digital Dawn, KPMG Report 2013, Aranca Research
In December 2011, the Indian government passed ‘The Cable Television Networks (Regulation) Amendment Act’ for
digitisation of cable television networks by 2014
The cable operators under the digitisation regime are legally bound to transmit only digital signals, while the customer can
access the subscribed channels through a set-top box
The number of DTH subscribers in India is expected to increase from 44 million currently to 200 million by 2018
The entire process of digitisation will be carried out in four phases
Phase City/Region Date for switchover*
Phase 1
Delhi 31st October 2012
Mumbai 31st October 2012
Kolkata 15th January 2013
Chennai Not completed
Phase II 38 cities in 15 states 31st March 2013
Phase III All remaining urban areas 30th November 2014
Phase IV Rest of India 31st March 2015

Source: Digital Dawn, KPMG Report 2013, Aranca Research
Advantages of Digitisation
Higher consumer preference, which lacked in the former Conditional Access System (CAS)
Consumers will be able to select content of their choice as well as indefinitely store and access digital content
The digital platform in films also includes the ‘video-on-demand’ feature on television
Higher transparency; subscriber declaration level is expected to increase to 100 per cent under post-digitisation regime as
compared to 15–20 per cent as declared by local cable operators (LCOs) to multiple system operators (MSOs)
Stake-holder revenues share Pre-digitisation Post-digitisation
Consumer ARPU 100 100
Local Cable Operators (LCOs) 65–70 35–50
Distributor 5 0–5
Multiple System Operators (MSOs) 15–20 25–30
Broadcaster 10–15 30–35

Average revenue per user per month (USD)
Note: F - Forecast
Presence of analog cable and higher contribution has led to
lower Average Revenue Per User (ARPU) level, which is
around USD3.0 for a digital pay television
However, with higher scope of introduction of new and
niche channels with digitisation, ARPU levels are expected
to increase
3.0
3.1 3.1
3.1
3.12.9
3.1
3.3
3.7
4.2
4.6
2011 2012 2013F 2014F 2015F 2016F
Analog Digital

Consolidation will be the major route to grow inorganically
for entertainment companies in order to expand their
portfolios and enter into new regions
A few big deals have come about, the most notable ones
being Walt Disney-UTV and TV18-ETV (together amounting
to around USD700 million)
Mergers and Acquisitions (M&A) deals during 2011-2012
Acquirer Target Deal date
Deal value
(USD
million)
Gujarat Telelinks
V&S Cable
Private Limited
April -2012 -
Educational
Trustee Company
Metronation
Chennai
Television
Mar-2012 3.2
Walt Disney UTV Feb-2012 300
TV18 Eenadu Group Jan 2012 395
Samara Capital Newswire18 Dec-2012 18.8
Blackstone
Jagran Media
Network
Jul-11 46.9

Cumulative FDI inflows into Information and
Broadcasting from April 2000 (USD billion)
Source: DIPP, Aranca Research
Notes: DIPP - Department of Industrial Policy and Promotion,
FY13* Data from April 2012-February 2013
FDI inflows into the entertainment sector between April
2000 and February 2013 stood at USD3.1 billion
By February 2013, the share of FDI in ‘Information and
Broadcasting’ was 1.6 per cent of total FDI inflows into the
country
Demand growth, supply advantages and policy support are
the key drivers in attracting FDI
0.6
1.3
1.8
2.2
2.9
3.1
FY08 FY09 FY10 FY11 FY12 FY13*

Source: Company Annual Reports, Aranca Research
Television content
Motion pictures
Games content
Broadcasting
Television content
Motion pictures
Games content
Broadcasting
Started as a
content provider
for Doordarshan
Ventured into
internet
content
creation and
aggregation
Launched IPO as
UTV Software
communications
Ltd
Launched
Hungama TV
Disney becomes a
majority share holder
with a stake of 32.1%
Deal with Disney
to dub its content
into Indian
languages
Acquires
Indiagames Ltd,
enters gaming
software and
content
Became world’s
first company to
record over 100
million downloads
on Nokia store
1990 1996 2000 2004 2005 2007 2008 2012
Interactive

Source: Company website, Aranca Research
1985 1993 2000 2003 2005 2007 2008 2012
‘SUN TV’ is
launched with
daily three hours
of programming
Launches SUN
Direct to provide
DTH services
Launches three
pay channels and
four ad-free action
movie channels
Starts its first FM
Channel
‘Sumangali FM’
Direct to Home
Motion pictures
Radio
Newspaper
Magazine
Broadcasting
Founded as
Sumangali
Publications
Launches a slew of
other channels in
various South Indian
languages
Acquires
Dinakaran
newspaper, Tamil
Nadu’s leading
daily
Enters Film
Production and
Distribution
through ‘SUN
Pictures’

Adlabs Imagica
Adlabs Imagica, a flagship project of Adlabs Entertainment
Ltd is a 300-acre entertainment theme park located on the
Mumbai–Pune expressway
It is India's most elaborate theme park for a total value of
USD294 million
The park features 21 attractions including rides, film shows
and live acts drawn from Indian mythology and Bollywood
cinema
The total footfall is expected to be around 2-3 million per
year
SALIENT FEATURES
Total area - 300 acre
Total cost - USD294 million
Visitor capacity - 10,000 to 15,000 visitors per day
Ticket cost - Weekday (USD23) weekends (USD28)

Dish TV revenues (USD million)
Dish TV is Asia's largest and India's first direct-to-home or
commonly known as DTH company
Dish TV India Limited, a division of Zee Network Enterprise
(Essel Group Venture) provides DTH satellite television
Dish TV ranks 5th on the list of media companies in the
Fortune India 500
The company’s revenue rose at a CAGR of 48.3 per cent to
USD423.1 million in FY12 87.4
149.4
233.7
320.9
423.1
FY08 FY09 FY10 FY11 FY12
CAGR: 48.3 %

14.8 16.8
19.4
22.7
26.4
30.5
2012 2013F 2014F 2015F 2016F 2017F
Market size (USD billion)
Over 2012–17, the total market size is expected to expand
at a CAGR of 15.6 per cent to USD30.5 billion
The next five years will see digital technologies increase
their influence across the industry leading to a sea change
in consumer behaviour across all segments
CAGR: 15.6%

Size of major industry segments (USD billion)
Television will continue to be the lead contributor to the
overall industry growth. The segment is estimated to expand
to USD15.6 billion by 2017 (CAGR of 18.5 per cent since
2012)
Radio, Animation & VFX, Gaming and Digital advertising
are emerging as the fast growing segments
During 2012–17, these segments are expected to expand at
a CAGR of:
Digital advertising (41.6 per cent)
Gaming (28.8 per cent)
Radio (21.2 per cent)
Animation (20.1 per cent)
0.0 5.0 10.0 15.0
Music
Radio
Gaming
Out of Home
Digital Advertising
Animation and VFX
Films
Print
Television
2017F 2012

Size of the animation industry in India
(USD million)
Source: KPMG Report 2013, Aranca Research;
Note: F - Forecast VFX - Visual Effects, CAGR - Compound Annual Growth Rate
Animation encompasses three key segments; these are ‘Animation Entertainment’, ‘Visual Effects (VFX)’ and ‘Custom
Content Development‘
India’s animation industry has been growing steadily; from a size of USD355 million in 2007, the sector is forecasted to
post a CAGR of 18.0 per cent to reach USD1.4 billion over 2007–17
Share of sub-segments in India’s
animation industry (2012)
16%
20%
64%
Animation VFX
Animation
Entertainment
Custom Content
Development
0.4
0.4 0.4 0.5
0.6
0.6
0.7
0.9
1.0
1.2
1.3
2007
2008
2009
2010
2011
2012
2013F
2014F
2015F
2016F
2017F
CAGR: 14.3%

Source: ‘’Media and Entertainment in India: Digital Road Ahead’ by Deloitte, Aranca Research;
Notes: * We have portrayed the intensity of opportunities in each segment based on the extent
of Indian players’ current presence in that segment
Gaming can be classified under three segments – ‘Personal Computer Games (PC)’, ‘Mobile Games’, ‘Console Games’
and ‘Online Games’
Revenues from Console gaming are expected to reach USD343.8 million by 2017E from USD144.5 million in 2012.
Revenues from Mobile and PC & Digital TV are expected to grow to USD329.1 million and USD96.9 million by 2017 from
USD104.2 million and USD32.9 million, respectively in 2012
Opportunities* for Indian gaming firms across the segment’s value chain
Concept
Creation
Pre-production Development
Post- Production
and Testing
Final Testing
Console Very Strong Strong Good Good Good
Mobile Good Good Good Good Good
PC Strong Strong Good Good Good
Online Strong Strong Good Good Good

Number of subscribers (Millions)
Note: F - Footnote
The share of digital cable as well as DTH service providers
is expected to increase post-digitisation
Total subscription for DTH is expected to increase to 75
million subscribers by 2016 from 4 million in 2009
Total subscription for DTH is expected to increase to 86
million by 2016 subscribers from 16 million in 2009
69 68 68 59 50
32
12 4
4 5 6 19 32
49
67 75
16 28 37
46
53 64 78 86
6
7
8
8
8
8
8
8
2009 2010 2011 2012F 2013F 2014F 2015F 2016F
Analog Digital DTH DD Direct

Television
• Television is projected to garner a share of 51 per cent in the television pie by 2017 (as
addressable digitisation is expected to cover the entire country by then)
• Television advertisement revenue is also expected to witness robust growth and increase
from USD2.1 billion in 2011 to USD4.2 billion by 2016
Animation
• The Indian animation industry was worth USD650 million in 2012 and is expected to
expand at a CAGR of 15.8 per cent to USD1.4 billion by 2017
• Growth in international animation films, especially 3D productions, and the subsequent
work for Indian production houses will help growth in this segment
Print
• The print industry was worth USD4.1 million in 2012 and is expected to develop at a
CAGR of 8.7 per cent to USD6.3 billion by 2017
• Newspapers and niche magazines are likely to drive industry growth
• Accelerated growth is forecasted in regional print and local news segments

Film
• Size of the Indian film industry is expected to touch USD3.6 billion by 2017, up from
USD2.1 billion in 2012
• Increasing digital screens and 3D films are expected to help industry growth
• Big ticket releases lined up for the next couple of years are also expected to boost
revenues
Radio
• Size of the Indian radio industry is expected to reach USD503 million by 2017, up from
USD234 million in 2012
• Phase III of e-auctions for FM radio licenses will provide an impetus to the segment
• Radio advertising is another area likely to experience accelerated growth
Music
• Size of the music industry is expected to grow to USD413 million by 2017, up from
USD195 million in 2012
• Mobile VAS and arrival of 3G are likely to lead to a surge in paid digital downloads
• Phase III radio licensing will also help in increasing music revenues from radio

Indian Motion Picture Producers’ Association (IMPPA)
"IMPPA HOUSE”, Dr Ambedkar Road, Bandra (West), Mumbai - 400 050
Tel: 91-22-26486344/45/1760
Fax: 91-22-26480757
Website: www.indianmotionpictures.com/imppa/index.html
The Film and Television Producers Guild of India
G-1, Morya House, Veera Industrial Estate,
Off Oshiwara Link Road, Andheri (W), Mumbai - 400 053
Tel: 91-22-66910662
Fax: 91-22-66910661
E-mail: guild@filmtvguildindia.org
Website: www.filmtvguildindia.org
Newspapers Association of India (NAI)
A -115, Vakil Chamber, Top Floor, Vikas Marg, Shakarpur, Delhi - 110092
Tel: 91-9971847045, 9810226962
E-mail: contact@naiindia.com
Website: www.naiindia.com

Association of Radio Operators for India (AROI)
304, Competent House, F-14, Connaught Place, New Delhi - 110001
Tel: 91- 124-4385887
e-mail: info@aroi.in
Website: www.aroi.in
The Indian Music Industry (IMI)
Crescent Towers, 7th Floor
B-68, Veera Estate, Off New Link Road, Andheri West, Mumbai - 400 053
Tel: 91-22- 26736301 / 02 / 03
Fax: 91-22-26736304
E-mail: sudhir@indianmi.org
Website: www.indianmi.org

AGV: Animation, Gaming and VFX
CAGR: Compound Annual Growth Rate
DIPP: Department of Industrial Policy and Promotion, Ministry of Commerce and Industry
DTH: Direct to Home
FDI: Foreign Direct Investment
FM: Frequency Modulation
FY: Indian Financial Year (April to March)
So FY10 implies April 2009 to March 2010
GST: Goods and Service Tax
IPO: Initial Public Offering
M&A: Merger and Acquisition
M&E: Media and Entertainment

PPP: Purchasing Power Parity
USD: US Dollar
Conversion rate used: USD1= INR 54.45
VAS: Value Added Services
VFX: Visual Effects
Wherever applicable, numbers have been rounded off to the nearest whole number

Year INR equivalent of one USD
2004-05 44.95
2005-06 44.28
2006-07 45.28
2007-08 40.24
2008-09 45.91
2009-10 47.41
2010-11 45.57
2011-12 47.94
2012-13 54.31
Exchange Rates (Fiscal Year)
Year INR equivalent of one USD
2005 45.55
2006 44.34
2007 39.45
2008 49.21
2009 46.76
2010 45.32
2011 45.64
2012 54.69
2013 54.45
Exchange Rates (Calendar Year)
Average for the year

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by
Aranca in consultation with IBEF.
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The
same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium
by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in
any manner communicated to any third party except with the written approval of IBEF.
This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the
content is not to be construed in any manner whatsoever as a substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in
this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of
any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on
the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

India : Entertainment Sector Report_August 2013

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