Slide 1: Entertainment as Business
Slide 2:  Films  TV Broadcasting  Cable Television  TV Software  Music  Radio  Live Entertainment Source: Arthur Anderson Report 2001
Slide 3: Potential of Growth
Slide 4: Industry Size 11.46 7.53 1.6 1.52 13.81 21.5 12.49 18.73 50.94 66.61 23.78 30 84.64 69.75 2000 – Rs 100 Bn 2005- Rs.314 bn
Slide 5: India is ½ of 1% of World Entertainment Industry •
Slide 6: Advertising spend as % of GDP 1.6 1.4 Percentage of GDP 1.2 1 0.8 0.6 0.4 0.2 0 India US Japan Europe UK Thailand Indonesia
Slide 7: India Advertising Expenditure % Average share of print media in total advtg. expenditure is 45% TV 36% Radio 2% Outdoor 6% Press 55% Cinema 1%
Slide 8: TV Penetration 40 percent of Indians have access to a TV
Slide 9: Television • • • • Size of industry estimated at Rs. 13.8 bn Revenue from 43 channels Rs 10.6 bn Export of television software Rs. 4.7 mn Webcasting of content : NumTv Television Content Market in 2000 Exports 23% Regional 33% Others 14% All Inida Premeir 30%
Slide 10: India has 12,900 cinemas Others 24% Andhra 21% UP 8% Maharashtra 9% Karnataka 9% Kerela 10% Tamil Nadu 19% “India needs 20,000 cinemas” UNESCO Study
Slide 11: Population (in millions) Number of Screens Population per screen Theatres per 1 mn People U.S.A. 265.9 31,000 8,580 116.6 India 1000 12,900 77,520 12.9 Theater admissions in England, Germany and Australia tripled with the multiplex and theater boom and a similar growth could be expected in India with adequate number of multiplexes.
Slide 12: The Indian Film Industry • • • • • • • Current size in terms of cost Rs. 21.5 billion Growth rate 15 percent Unorganized sector: Unstructured and lack of diligence. Informal sources of finance Exhibition infrastructure insufficient. Entertainment tax very high Institutions wary of investing in the sector
Slide 13: Profile of Movie Revenue Internation al theatricals 31% Domestic theatricals 33% Satellite rights 20% Music rights 16%
Slide 14: India exported 412 films in 1999. Taal and Kuch Kuch Hota Hain grossed over US$ 8 million in exports. Mission Kashmir has released overseas with 125 prints.
Slide 15: Projection of Film Exports 18 16 14 12 10 16 Rs.Bn 8 6 4 2 9 4.5 2 2.5 1999 2000 2001 2002 0 1998
Slide 16: Distribution of Revenue (“A” Grade Film) 0.7 0.8 0.5 US$ mn 3.3 1.4 1.8
Slide 17: Music • Present size: Rs. 12.5 billion • Genres of music: New hindi film, old hindi film, regional, Indipop, International, classical and devotional. • Structure: Dominance of Hindi film music, Capital Intensive structure and genre focus • Consolidation has taken place from 25 odd companies to 10 companies
Slide 18: Realizing the Dream • Film Industry is the driving force behind Indian entertainment • Music, TV, Shows rely substantially on Indian cinema for content
Slide 19: Villains of the Piece Non recognition as an industry with all its ramifications Highest Entertainment tax in the world (up to 110%) Rampant Piracy
Slide 20: Developments so far.. • • • • • Announcement: Film sector declared an industry under the IDBI Act Public Issues by companies: Mukta Arts, Zee Financial institutions join the movement: IDBI Insurance enters: United India Insurance 15 films in 2001
Slide 21: • • • • • Completion bonds debut: Film Finance, Inc to start operations in India this year Multiplexes boom: More than 25 new multiplexes to be ready by 2003 UP, Maharashtra, Gujarat and others declare investment friendly multiplex policy FICCI and CII both have active entertainment cells Crackdown on underworld finance
Slide 22: What More? • Multiplex policy must be adopted by the other states • Rationalization of entertainment tax • More intensive curb on Piracy • Film Exports incentives to be increased • Development of India as an animation hub • Other banks to take the lead from IDBI • Venture capitalists and Investment bankers to enter the fray • Recognition of entertainment on the same platform as IT.
Slide 23: THANX!