Category: Ficci Frames

MUMBAI: The Indian television industry is poised for a giant leap forward. With growth engines coming from both advertising and subscription revenues, the segment is estimated to touch Rs 521 billion by 2014, up from Rs 257 billion in 2009.

A CAGR of 15.2 per cent over the next five years will be fuelled by wider digital penetration, fiercer competition in the TV distribution business, and deeper advertising support.

Ad revenue will grow at a rate of 15.6 per cent, according to a Ficci-KPMG report released today at Frames 2010, slightly higher than subscription income that is set to run at a CAGR of 15 per cent.

The turning point is the improvement in the global economy. The slowdown had hurt the television industry in 2008-09 as it grew at 7 per cent during this period, compared to a 14 per cent grow in the year-ago period.

Digitisation will be the sweet spot as it increases transparency and unlocks undisclosed revenues for broadcasters from the cable TV operators. The share of broadcasters in the subscription pie is expected to go up from 18 per cent in 2009 to 27 per cent in 2014.

The share of subscription revenues in the top line of broadcasters is expected to increase from 26 per cent to 33 per cent by 2014. Subscription revenues for them are growing at a CAGR of 24 per cent compared with the segment’s ad revenue growth of 15.6 per cent.

2009 saw show budgets being cut by 15-20 per cent and certain cost effective formats becoming popular with producers. The disadvantage of reality TV is that it is more expensive than fiction and does not generate high TRPs compared to fiction.

On the advertising front, KMPMG notes that in 2009 regional general entertainment channels became popular with advertisers. Their ad spend grew to 29 per cent compared with 21 per cent in 2006. Their share came at the expense of Doordarshan which was earlier preferred by advertisers looking for a regional reach. Ad volumes on regional channels increased by 12 per cent due to new channel launches and increase in FCT.

The year gone by has not been good for English and Hindi news channels as both lost share. This was compensated to an extent by growth in the regional news channels. This reached a 3.4 per cent of all India viewership in 2009, up from 2.6 per cent in 2008. The share of Southern news channels reached 5.8 per cent.

2009 was also tough for music channels with viewership shares dipping across all TGs. They are finding it more and more difficult to attract and retain interest due to more competition from GECs and other genres. The maximum loss of share has been in the 25+ TG. A new development that took place was an attempt at re-positioning music channels, drawn from the fact that MTV and Channel V started focusing on non music content.

The kids genre grew their all India viewership across TGs. A positive trend for 2009 was that apart from children, the channels managed to attract the 15+ TG and adults as well. Kids channels tried to create a 360 degree communication platform by interacting with kids through sites, phones etc.

Challenges: The lack of transparency in analogue cable systems has traditionally been a challenge for broadcasters. LCOs still garner almost 75 per cent of subscription revenue due to under declaration while broadcasters get 20 per cent and MSOs five per cent. This scenario could change with the higher penetration of digital platforms.

Carriage fees eased during 2009, amounting to a payout of Rs 10-12 billion by broadcasters.

Another challenge lies in having an extended audience measurement system for the broadcasting industry. Though the current measurement system captures information from 8000 TV homes, the coverage is limited and the trends may not be descriptive of the entire nation.

The focus of advertisers is likely to rest on 360 degree connect with consumers. This may give rise to a need for multimedia campaigns. Broadcasters, thus, can expand their portfolio of services or tie ups with other players to offer ad packages.

“A continued focus on operational effectiveness and cost efficiency is likely to help improve overall profitability,” the KPMG report says.

MUMBAI: Does sports stop being entertainment when one starts rooting for a team and gets emotionally attached to the game?

Interestingly, this was one of the comments that came forth during a discussion at the Ficci Frames which sought to examine the correlation between sports and entertainment. Former cricket Ajay Jadeja sought to link the two by saying that the involvement of Bollywood was the key to the success of the Indian Premier League (IPL).

Other speakers were Triplecom Media chairman and CEO Kunal Dasgupta, actor Rahul Bose and former Indian hockey captain Viren Rasquinha.

It was noted that the IPL Governing Council glamourised the event to expand its reach, and people who otherwise would not have come for cricket came to see Shah Rukh Khan and other celebrities. Dasgupta admitted that when Max started on the IPL journey, the focus was more on entertainment rather than on emotion.

Bose said the game was beginning to be taken more seriously then as mere entertainment. Dasgupta noted that women and kids have now started watching the IPL. He admitted that bringing in Mandira Bedi in 2003 had been aimed at bringing in the glamorous quotient.

Even the IPL succeeded only because of the entry of giants as franchises of teams, he said. “The BCCI initially did not want to go the franchise route for the IPL. We told them to do this and allow for celebrity ownership and not just faceless corporates. This helped put a face on teams that people relate with’.

At the session it was also noted that actors are more effective marketing tools than cricketers even in the sporting world. It was observed that this was why more Shah Rukh Khan T-shirts are sold than those of Saurav Ganguly or any other cricketer. Indians have grown up more with Bollywood as opposed to sports, and cinema has been a cultural centre. In any case, it was said that cricketers or other sportspersons are not as savvy as actors when it came to marketing themselves.
 

MUMBAI: The opening of the annual Ficci Frames 2010 was glamorous with the presence of Bollywood personalities like Yash Chopra, Karan Johar, Shah Rukh Khan and Katrina Kaif, but the television industry was treated as a poor cousin on the first day.

With the 11th Ficci Frames concentrating like the previous years on the business of entertainment, even the bigwigs of Bollywood along with those from the United States concentrated on business.

Perhaps the only difference was that the presence of these personalities perforce made everyone speak only about cinema, despite the fact that the three-day meet is about all aspects of entertainment.

And Katrina along with Dutch actress Victoria appeared to be present to add the glamour quotient, and participated in the Lamp Lighting ceremony.

But unlike other events which do not have a political bent, Maharashtra Chief Minister Ashok Chavan stayed on for the entire duration of the session, which started almost an hour late and lasted around two hours.

And expectedly, Shah Rukh Khan who is still smarting from the ‘My name is Khan’ controversy and Yash Chopra apart from the Chief Minister used the podium to make political points, mostly surrounding around the attempts to prevent the screening of the Karan Johar-directed SRK starrer. 

Interestingly, Fox Filmed Entertainment CEO James N Gianopulos not only quoted SRK who had recently said that in India, seeing films was like brushing teeth in the morning and ‘you cannot escape it’, but also Mark Twain about the way Indian civilisation had affected the world.

As the day rolled on, the debate on entertainment moved to other areas. A big miss, however, was the absence of the Information and Broadcasting Minister Ambika Soni who was caught up in Parliament following the issuance of a whip in Rajya Sabha where the discussion on the Budget was coming up for voting. She will now be available on the final day of the event.
 

MUMBAI: With piracy looming as a major threat, most speakers at the inauguration of the Ficci Frames 2010 stressed the need for speeding up the process of digitalisation.

Turner Broadcasting System International president Louise Sans, who is also EVP and General Counsel for Turner Broadcasting, Fox Filmed Entertainment CEO James N Gianopulos, and Ficci SVP Harsh C Mariwala particularly emphasized on this and also said this had opened up several other mediums for entertainment content.

Sans also stressed on the increasing investments by Turner in India and said that apart from having come to India with CNN in 1991 and Cartoon Network and Pogo in 1995 and 2004 respectively, the conglomerate had now entered Hindi entertainment by acquiring Imagine TV which had been started by NDTV.

“India has emerged as the largest revenue market in the Asia Pacific region. India was also where we made our largest investment overseas in 2009,” said Sans.

Cartoon Network had been the first international channel to show Indian animation films overseas in 2001.Turner had also entered into a fruitful alliance with Subhash Chandra‘s Zee Group to create Zee Turner.

Gianopulos said digitalisation was redefining Hollywood and Bollywood. As against the VHS ten years earlier, entertainment was now being transmitted through DVD, BD Live, PPV, VOD Cable, VOD Online, Digital Copy, E-Copy, EST, Streaming, Flash Media and Mobile Video.

Gianopulos said the high costs of production in America had forced producers to move out and seek new tie-ups, and India was a favourite destination. He said India had great stories, but these would not sell unless they were told with the global audience in mind. There was need to act local but think global. “There is need to make films for everyone. We also have some movies made for someone’, he added.

He said this was one of the reasons for films like ‘My name is Khan’ getting released in 44 countries including the United States, and becoming the first global film from India.

Referring to the revenues from entertainment, he said the United States earned $10,675 million from a population of 340 million in the domestic market while a sum of $19,235 million was being earned from 6,500 million people in the international market.

India had a 93 per cent share in the international market in entertainment as compared to 60 per cent in Japan and 53 per cent in China.

The international revenues of ‘Avatar’ comprised 40 per cent from just 17 per cent of the screens in India.

But he regretted that while a film fails at the box-office in India, it succeeds in pirated versions. Infringement of copyright needed to be checked very strongly.

Mariwala referred to three developments in Indian entertainment: digitalization, growth of edutainment, and corporatization.

Ficci Entertainment Committee co-chairman and filmmaker Karan Johar who conducted the first session hailed the growing popularity of Indian films and actors, and said 3.2 billion people knew Shah Rukh Khan overseas as compared to a following of 2.9 billion for Brad Pitt.

Ficci Secretary General Amit Mitra said a whole new social milieu was coming into Indian cinema and television with a change in themes and stories.
 

MUMBAI: Eminent filmmaker Yash Chopra, who is chairperson of the Ficci Entertainment Committee, said today that the film industry was planning to mark the centenary of Indian cinema in a major manner in 2013.

He announced at the inauguration of Ficci Frames 2010 that the centenary celebrations were being launched from this meet.

Seeking support of the state government and Chief Minister Ashok Chavan, he said cinema had seen its birth in Maharashtra with the making of the first indigenous feature film ‘Raja Harishchandra’ by D G Phalke (known as Dadasaheb Phalke) in 1913.

He also said the film industry was passing through great crisis and needed support. He said that the police was generally efficient but greater help was needed to curb piracy which was threatening the very existence of the industry.

MUMBAI: Bollywood Badshah Shah Rukh Khan today stressed the need for greater synergy between Hollywood and Bollywood but said what India needs is expertise and experience more than investments.

In his keynote address, Shah Rukh listed some fields in which this could be achieved: treating screenplay writing as a science and not merely an art; using VFX and animation to its full potential; and improving the science of marketing to build a symbiotic relationship with Hollywood.

Khan staunchly defended the star system in India and the United States and said this had sustained the cinemas in the two countries.

Khan referred to Jim Gianopolous of Fox Entertainment quoting him on seeing films being akin to brushing teeth in the morning in India and said entertainment had become the most important need of the people in India after ‘roti, kapda aur makaan’.

He said entertainment was being seen as the backbone of the economy with the country moving forward positively. He also referred to many Indian film conglomerates like UTV, Reliance ADAG and Studio18 teaming up with Hollywood giants to make films and said this emphasized the need for synergy.

He strongly criticized the use of the word cross-over films and said he had never been able to understand what it implied. At the same time, he said that Indian films could not cross the seven seas unless they learnt that three-hour films full of song and dance will not necessary sell in other countries. There was clearly a need for quid pro quo from the side of Hollywood as well, and so producers from there should be allowed to make films here.

MUMBAI: The largest meet on the business of entertainment in Asia, Ficci-Frames 2010, got off today with a political statement when Chief Minister Ashok Chavan categorically said that India “does not need another censor board”, clearly alluding to the recent controversy relating to the film My Name is Khan.

Chavan assured the film fraternity, which included eminent filmmakers Yash Chopra and Karan Chopra apart from Shah Rukh Khan himself, that the state government will not allow any second censorship when the country already has the Central Board of Film Certification, indirectly referring to the Shiv Sena protests against My Name is Khan after Shah Rukh Khan‘s statement about Pakistanu cricketers not being taken by the IPL (Indian Premier League) franchises.

Chavan said that there was need to send out the message that one needed to uphold the Constitution of the country and support democratic means.

He claimed that the phased release of the film ‘My name is Khan’ in the face of protestors was not a mere political stunt but a well thought out strategy to send out a message to those who fomented trouble.

Addressing the inaugural session, Chavan also assured all help to the film industry in curbing piracy which was resulting in huge losses. He said there were adequate laws to deal with the menace but there was need for greater implementation and enforcement.

He also assured both the Ficci and the film industry that the state government would extend all help in marking the centenary of Indian cinema in 2013 and he would personally look into any suggestions in this regard. 

He said the aim was to work towards the best infrastructure support for the entertainment industry in the state.

MUMBAI: The media and entertainment industry will post a strong rebound and grow at a CAGR of 13 per cent to touch Rs 1091 billion in 2014, according to a Ficci-KPMG report released today at Frames 2010.

The sector is already showing signs of recovery and is expected to grow at 11.2 per cent in 2010, accelerating from a measly 1.4 per cent growth in 2009. The industry grew at a snail’s pace from Rs. 579 billion in 2008 to Rs 587 billion, bruised by a slump in advertising as corporates curtailed their spends in the wake of a global downturn.

Television:
Growing faster than the M&E sector, television will post a 15.2 per cent CAGR over the next five years to touch Rs 521 billion in 2014. It will continue to account for 48 per cent of the sector’s total revenues.

Filmed Entertainment:
Hit by a two-month strike and impact of IPL, the filmed entertainment sector degrew by 14 per cent to clock Rs 89 billion in 2009.

KPMG, however, forecasts a nine per cent CAGR growth for the filmed entertainment sector over the next five years, sizing up to Rs 137 billion by 2014.

“The growth drivers for the sector would include expansion of multiplex screens resulting in better realisations, increase in number of digital screens facilitating wider releases, higher C&S revenues, improving collections from the overseas markets and ancillary revenue streams like DTH and digital downloads which are expected to emerge in future,” the report says.

Print Media:
The Indian Print Media industry grew at a modest rate of 2 per cent to end the year at Rs 175 billion. “There was a decline in advertisement revenues being offset by growth in circulation revenues. In the second half of the year, the sector took some steps towards recovery supported by a general perception of improvement in the overall economy. Regional markets for print showed growth, whilst the national players (particularly English) were affected,” KPMG says.

The industry is projected to grow at a CAGR of nine per cent over the next five years to touch Rs 269 billion by 2014.

Radio:
Radio industry fell 0.3 per cent to Rs 7.8 billion in 2009, due to a drop in ad volumes and rates.

Radio is expected to grow at a CAGR of 16 per cent over 2010-14 and reach a size of Rs 16.4 billion by 2014. “Increase in the number of radio stations in Phase III, expected regulatory reforms that are likely to improve profitability and stimulate foreign investments, enhancement of current measurement systems and growth in locally targeted advertising are some of the growth drivers for the sector,” says KPMG.

Music:
The Indian music industry saw a 14 per cent jump to close 2009 at Rs 8.3 billion. Increased acceptability of different digital distribution models, acceptability of music genres other than the Indian film industry, and broadcast and public performance licensing revenues, fuelled this growth.

The sector is expected to grow at a CAGR of 16 per cent over the next five years to touch Rs 17.2 billion.

Out of Home (OOH):
OOH media suffered a 15 per cent drop in 2009 to end the year at Rs 13.7 billion. “Till now, the growth has been centred largely in Tier I towns but a noticeable trend in 2009 was increased investments in Tier II and III towns,” KPMG says.

KPMG projects a 12 per cent CAGR over the next five years for the sector to reach a size of Rs 24.1 billion.

Animation:
The Animation & VFX segment, at Rs 3.2 billion, posted a 13.6 per cent growth in 2009.

The industry is expected to grow at a CAGR of 18.7 per cent in the next five years to reach Rs 46.6 billion by 2014. This growth is going to be triggered by the increased consumption of animated content, focus on IP creation and growth of 3D formats.

Gaming:
Gaming has shown a 22 per cent growth in 2009, and is expected to grow at a CAGR of 32 per cent in the next five years to reach Rs 32 billion by 2014.

“Console gaming currently constitutes the largest share of the pie, but going forward mobile gaming platform is expected to eventually surpass levels of console games. The growth in this sector will be backed by the increase in number of casual and active games, arrival of 3G, availability of localised content, growth in ad funded gaming platforms and greater awareness of products and services,” says the report.

MUMBAI: The Indian media and entertainment industry, which went through a tough phase in the last two years due to a slowdown in the economy, has registered a measly 1.3 per cent growth in 2009 to touch Rs 591.59 billion.

The M&E sector is hurt by a slump in advertising budgets that account for almost 40 per cent of its revenues, according to the Ficci-KPMG report that is to be released tomorrow at Frames 2010.

The TV industry, however, displayed an almost double digit growth, mainly on account of subscription revenues. Advertising revenues also showed positive growth, the study said.

Internet, gaming and animation also showed signs of double digit growth, albeit on a smaller base.

Some sectors were impacted more than the others like OOH and films, both of which registered a negative growth during the year. Even in 2010, they are expected to recover with an almost flat or moderate growth rate. Sectors like print, radio and music either remained flat or showed a very moderate growth.

For 2008, KPMG had assessed the industry at Rs 584 billion, a 12 per cent increase over the year-ago period.

Interestingly, in its report last year, KPMG had projected a 12.5 per cent CAGR over five years – from Rs 584 billion in 2008 to Rs 1052 billion by 2013.

KPMG forecasts a stronger recovery in 2010 as the economy improves. Growth in the M&E industry is expected to be driven, amongst other factors, by subscription revenues through enhanced penetration and expansion of digital delivery infrastructure.

The report says that rising disposable incomes of the working population and increased spend on discretionary items, not only in Tier I but also Tier II and III cities, is expected to continue impacting the M&E industry favourably.

It also suggests that growth of newer delivery platforms with superior technology and functionality is likely to expand horizons for the M&E business. Aspirations of Indian players to go global and foreign players entering the industry will also help the sector post a double digit growth in the next five years.

The report also states that the role of new media is becoming increasingly important in the distribution portfolio of advertisers. Focus on talent development, consumer research and innovation will help the players in differentiating themselves amidst growing competition.

It observes that 2009 was a year marked with innovations and cost efficiencies which came about in all the sectors, more as a necessity to combat the pressures on bottom line. Newer content formats and strategies adopted by the players in the industry ensured that customers had more choices. Cost efficiencies, which came about last year, proved to be a silver lining in a bad year.

The FICCI-KPMG report has identified 10 key drivers for the growth of the M&E industry.

1.Digitisation: Availability and penetration of newer distribution platforms will benefit the M&E industry in years to come.

2.Regionalisation: Regionalisation across Print, TV, Music, Films and Radio increased in 2009. It will be one of the significant factors driving growth with growing increase in literacy, consumption and disposable incomes in Tier II and III cities.

3.Convergence: Advertisers are looking at multiple delivery platforms for content to break through the clutter in existing platforms. The new media is merging the functionalities of customer end terminal devices like TV, PCs, Mobile phones.

4.Consolidation: With entry of newer players the industry is increasingly becoming fragmented. Increasing competition is expected to give way to consolidation of operations.

5.Competition: The entry of newer players has had a positive impact on the overall market as it has helped in expanding the market size. This will continue in future with new players emerging to capture newer set of audiences with advancements in their product, marketing and distribution to tap these customer segments.

6.Talent development: Investment in educational institutions providing specialised courses for skilled technicians is a step in the right direction to develop talent and meet the demand of the industry.

7.Innovation: Innovation across product, process, marketing, distribution and business model is essential for players to adapt to the changing market scenario, technology and consumer behaviour.

8.Growing importance of pay markets: Subscription revenues are becoming important with consumers paying for media services. The growth in ticket prices of movies at multiplexes, increasing number of Pay TV subscribers, increasing penetration of DTH and introduction of VAS by media players are some examples of pay markets gaining importance.

9.Consumer research: With increasing fragmentation of audiences and competition within and from outside media sectors, it is becoming difficult for players in the M&E industry to rely purely on past experience and creative expression.

10.Focus on 360 degree connect: The players are taking the help of multiple touch points at the same time to communicate to the consumer across platforms like TV, Print, Radio, OOH, Films, Internet, Mobile and Retail.

Meanwhile, the report quotes that the amount of media spends in India is 0.41 per cent of the GDP, which is half of the world’s average of 0.80 per cent and is much less compared to developed countries like USA and Japan.

Also, the current media spend per capita for India is very low at $4 compared to the other countries. Even though it is difficult to reach the levels of countries like US, Japan and UK, due to a very large population base and lower spending power per capita, there is scope to follow China and enhance this ratio.
 

MUMBAI: Ficci has tied up with Holland as the partner country for its upcoming annual media and entertainment conference Frames 2010, to be held in Mumbai from 16 -18 March.

This partnership has happened primarily through the ME-India platform, a collaboration of 14 companies of the Dutch M&E industry and Dutch Ministry of Economic Affairs, which focuses on stimulating and expanding the creative industry of Holland and India alike.

ME-India programme coordinator and initiator Soeniel Sewnarain says, “ME-India calls for making efficient use of existing networks, developing new initiatives and creating a structural link between the two countries in creative audio-visual terms. The collective entry into Ficci Frames is an example of the activities ME-India organises to reach her goals.”

All of the participants of the ME-India delegation come from different backgrounds from the Dutch Media and Entertainment sector. They all see the possibilities India has to offer and they come to the Ficci Frames to expand their (already existing) network or to offer their products and services. The delegation includes such film directors, Martin Lagestee, San Fu Maltha and Dutch actress Victoria Koblenko.

Ficci will facilitate interaction of the Dutch delegation with Indian companies in their field of interest. Indian Media and Entertainment companies interested in the Netherlands can also meet the delegation at their stand at Ficci Frames.