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Category: Event Coverage

  • Uday Shankar, Mukesh Ambani set the tone for FICCI FRAMES

    Uday Shankar, Mukesh Ambani set the tone for FICCI FRAMES

    MUMBAI: For a meet that is perhaps the largest in the country covering all all media and entertainment platforms, it was heartening to see the the universe of M & E industry gthered under one roof.

    FICCI Frames 2016 is up and rolling. ‘Change or Perish’ says the LED backdrop and that’s the theme of the 17th edition.

    And Communication and Information Technology Minister Ravi Shankar Prasad, Star India CEO Uday Shankar, Reliance Industries Ltd Chairman and MD Mukesh Ambani FICCI Entertainment wing Chairman Ramesh Sippy, Discovery President J B Perrete, and FICCI Secretary General Deedar Singh showed the way forward.  

    Star India CEO Uday Shankar, FICCI Chairman Ramesh Sippy, Minister of Telecom and Information Teachnology, Discovery President JB Perrete, and  Deedar Singh secretary general FICCI were among the dignataries who lit the lamp to mark the beginning of the edition.

    “Cable TV continues to struggle, struggling to be relevant in the ever changing scenario. Digitization is still to taste success; and the content is becoming more and more redundant. Overall the M&E sector is the same as it was while the timelines have changed and changed again,”

    Those opening lines by Star India CEO Uday Shankar touched many raw nerves, welcomes by loud claps at the inaugural session of the FICCI FRAMES 2016.

    But he added that even as there are certain teething issues that the industry is facing, there are great happenings to talk about too. In his un-orthodox manner, he touched on these. “But at the same time there is a disruption happening, there are four young boys who made more headlines than any other content creators. They took on the biggest of the players be it Mark Zukkerberg’s Facebook when their friendly internet’s neutrality came under threat. They had the guts to keep a name that the news channels in India chose not to pronounce wholly. They call them AIB.”

    Uday Shankar Mukesh Ambani and Shri Ravishankar Prasad at Ficci Frames 2016

    Talking about his own network, he said “the biggest launch in the media and entertainment industry was not a newspaper, nor a TV channel  but an app. Hotstar drove the wave, 5crore times the app was downloaded, more people watched EPL on Hotstar than on TV and this is how India is changing.”

    He also spoke about the global success story: “Imagine where Netflix Facebook were 10 years back and see the empire they have made in such a short span. Also remember the best animators are no longer sitting in California, they can now be spotted in Goregaon. Priyanka Chopra is now a global star and now India needs to be a global leader.”

    Concluding his remarks, he said: “The whole country today is looking at what Mukesh Ambani is busy with, there is a wave of expectation and the expectation is from Ravi Shankar Prasad (C and IT Minister) too. They are the two stakeholders on whom the digital wave depends. Hope they do the best as that will be the best of media and the entertainment Industry.”

    Reliance Industries  Chairman and MD Mukesh Ambani said: “I was here in 2004 when the industry was 2 billion dollars strong, and today it is 18 billion dollars strong. It is a great success and but there are miles to go. I believe the industry will be a 100 billion dollar one in the next decade, which means we have a major task in our hands.”

    Referring to the theme of the annual meet, he said: “There could not be a better theme than Change or Perish. To my mind digitization is the key to the industry’s success and that’s why we have JIO which can be called as the world’s largest startup.”

    He was confident that with the launch of Jio, India will be among the top ten in the next few years from the current rank of 155 among the top countries using mobile data. “Jio will provide coverage, and wherever you are you will be able to access. Quality will be 40 to 80 times faster than at present. Quantity and capacity currently is 0.15 GB per annum, with capacity of over 10 GB per user per annum  We will be affordable to consumers, and I believe affordability is the key “

    India, he said, will leapfrog and be a leader in the digital world. The world is moving from "orality to visuality. Images and videos will rule the digital world. Human beings and our thinking are linear.  Technology is an exponential idea. Exponential changes will create large opportunities," he said.

    Sharing his analysis he said, “The world is graduating to a telemedia world. The focus will be on all from all. The telco will focus on content, the broadcaster will invest on technology and producers will have  new delivery platforms. We are all part of a telemedia world. Downloading has now become streaming, linear has become interactive.”

    Ambani drew light on the way forward. “Abundance will be a global trend. Data is the new oil of this industry, and intelligent data is the petrol. It is not about technology – it is about humanity, the true power of technology is in the evolution of humanity. All our efforts need to be to make India the leader in 21st century. Together we can make India the leader with more than one-sixth of humanity residing in India.”

     

     

  • Uday Shankar, Mukesh Ambani set the tone for FICCI FRAMES

    Uday Shankar, Mukesh Ambani set the tone for FICCI FRAMES

    MUMBAI: For a meet that is perhaps the largest in the country covering all all media and entertainment platforms, it was heartening to see the the universe of M & E industry gthered under one roof.

    FICCI Frames 2016 is up and rolling. ‘Change or Perish’ says the LED backdrop and that’s the theme of the 17th edition.

    And Communication and Information Technology Minister Ravi Shankar Prasad, Star India CEO Uday Shankar, Reliance Industries Ltd Chairman and MD Mukesh Ambani FICCI Entertainment wing Chairman Ramesh Sippy, Discovery President J B Perrete, and FICCI Secretary General Deedar Singh showed the way forward.  

    Star India CEO Uday Shankar, FICCI Chairman Ramesh Sippy, Minister of Telecom and Information Teachnology, Discovery President JB Perrete, and  Deedar Singh secretary general FICCI were among the dignataries who lit the lamp to mark the beginning of the edition.

    “Cable TV continues to struggle, struggling to be relevant in the ever changing scenario. Digitization is still to taste success; and the content is becoming more and more redundant. Overall the M&E sector is the same as it was while the timelines have changed and changed again,”

    Those opening lines by Star India CEO Uday Shankar touched many raw nerves, welcomes by loud claps at the inaugural session of the FICCI FRAMES 2016.

    But he added that even as there are certain teething issues that the industry is facing, there are great happenings to talk about too. In his un-orthodox manner, he touched on these. “But at the same time there is a disruption happening, there are four young boys who made more headlines than any other content creators. They took on the biggest of the players be it Mark Zukkerberg’s Facebook when their friendly internet’s neutrality came under threat. They had the guts to keep a name that the news channels in India chose not to pronounce wholly. They call them AIB.”

    Uday Shankar Mukesh Ambani and Shri Ravishankar Prasad at Ficci Frames 2016

    Talking about his own network, he said “the biggest launch in the media and entertainment industry was not a newspaper, nor a TV channel  but an app. Hotstar drove the wave, 5crore times the app was downloaded, more people watched EPL on Hotstar than on TV and this is how India is changing.”

    He also spoke about the global success story: “Imagine where Netflix Facebook were 10 years back and see the empire they have made in such a short span. Also remember the best animators are no longer sitting in California, they can now be spotted in Goregaon. Priyanka Chopra is now a global star and now India needs to be a global leader.”

    Concluding his remarks, he said: “The whole country today is looking at what Mukesh Ambani is busy with, there is a wave of expectation and the expectation is from Ravi Shankar Prasad (C and IT Minister) too. They are the two stakeholders on whom the digital wave depends. Hope they do the best as that will be the best of media and the entertainment Industry.”

    Reliance Industries  Chairman and MD Mukesh Ambani said: “I was here in 2004 when the industry was 2 billion dollars strong, and today it is 18 billion dollars strong. It is a great success and but there are miles to go. I believe the industry will be a 100 billion dollar one in the next decade, which means we have a major task in our hands.”

    Referring to the theme of the annual meet, he said: “There could not be a better theme than Change or Perish. To my mind digitization is the key to the industry’s success and that’s why we have JIO which can be called as the world’s largest startup.”

    He was confident that with the launch of Jio, India will be among the top ten in the next few years from the current rank of 155 among the top countries using mobile data. “Jio will provide coverage, and wherever you are you will be able to access. Quality will be 40 to 80 times faster than at present. Quantity and capacity currently is 0.15 GB per annum, with capacity of over 10 GB per user per annum  We will be affordable to consumers, and I believe affordability is the key “

    India, he said, will leapfrog and be a leader in the digital world. The world is moving from "orality to visuality. Images and videos will rule the digital world. Human beings and our thinking are linear.  Technology is an exponential idea. Exponential changes will create large opportunities," he said.

    Sharing his analysis he said, “The world is graduating to a telemedia world. The focus will be on all from all. The telco will focus on content, the broadcaster will invest on technology and producers will have  new delivery platforms. We are all part of a telemedia world. Downloading has now become streaming, linear has become interactive.”

    Ambani drew light on the way forward. “Abundance will be a global trend. Data is the new oil of this industry, and intelligent data is the petrol. It is not about technology – it is about humanity, the true power of technology is in the evolution of humanity. All our efforts need to be to make India the leader in 21st century. Together we can make India the leader with more than one-sixth of humanity residing in India.”

     

     

  • FICCI FRAMES: Broadcasting stalwarts feel it is possible to survive the digital wave

    FICCI FRAMES: Broadcasting stalwarts feel it is possible to survive the digital wave

    MUMBAI: Is the past too old to be relevant in the future, and will it actually ‘perish’ if ‘change’ does not take place?

    These questions were discussed by panelists at a session to discuss the formula to Survive the digital wave: Change or perish.

    On the dias were The India Today Group Chairman and Editor-in-chief Aroon Purie, Discvery Asia Pacific Managing Director and President Arthur Bastings Viacom 18 group CEO Sudhhanshu Vats, Disney India MD Siddharth Roy Kapur, NDTV Group Director and CEO Vikram Chandra, and Hungama CEO Neeraj Roy, and the session was moderated by Pranjal Sharma with questions also coming from the delegates.

    “The fundamental is still the same, produce quality and you will have consumers and that’s the way forward as far as I am concerned,” asserted Purie.

    Bastings said staying with the mood of the occurrences is a must. “We cannot only have a channel. We need to have, whatever is there in the ecosystem. Once you have everything you can decide your core business and the rest depending on the performances you can plan your investments,” he added.

    During the course of the discussion, the AVOD model was questioned numerous times. Offering content for free is habit forming which might hurt the ecosystem and what is happening to TV now can happen to OTT too a few years later.

    Vats, whose Viacom’s digital AVOD offering VOOT was launched recently, said: “The consumer is paying. He may not be paying me but is paying for the data. As the payment mechanism develops, bundling can happen. So to say that the consumer is not paying is actually not a correct conclusion.”

    Kapur had a somewhat different point of view as compared to Vats. ‘Waiting for later’ was is not a saleable proposition for him. “We launched 500 channels and did not make consumer pay anything for it. We believe if we form a habit that consumers will later come, pay and watch, does that mean that we open a series of screens and let people walk in for free. I do not think so.”

    “Yes, people are watching movies on mobile phones but that does not mean theatre screens are going away” he added

    Chandra said there was room for profits and opportunities, “It is possible to monetize and it is possible to make profits. But you cannot put archival content, you need to create content exclusively for that very platform and only then will you taste success. The mindset that I will put archival content on digital is a slightly wrong mindset that the broadcasters have been following.”

     

  • FICCI FRAMES: Broadcasting stalwarts feel it is possible to survive the digital wave

    FICCI FRAMES: Broadcasting stalwarts feel it is possible to survive the digital wave

    MUMBAI: Is the past too old to be relevant in the future, and will it actually ‘perish’ if ‘change’ does not take place?

    These questions were discussed by panelists at a session to discuss the formula to Survive the digital wave: Change or perish.

    On the dias were The India Today Group Chairman and Editor-in-chief Aroon Purie, Discvery Asia Pacific Managing Director and President Arthur Bastings Viacom 18 group CEO Sudhhanshu Vats, Disney India MD Siddharth Roy Kapur, NDTV Group Director and CEO Vikram Chandra, and Hungama CEO Neeraj Roy, and the session was moderated by Pranjal Sharma with questions also coming from the delegates.

    “The fundamental is still the same, produce quality and you will have consumers and that’s the way forward as far as I am concerned,” asserted Purie.

    Bastings said staying with the mood of the occurrences is a must. “We cannot only have a channel. We need to have, whatever is there in the ecosystem. Once you have everything you can decide your core business and the rest depending on the performances you can plan your investments,” he added.

    During the course of the discussion, the AVOD model was questioned numerous times. Offering content for free is habit forming which might hurt the ecosystem and what is happening to TV now can happen to OTT too a few years later.

    Vats, whose Viacom’s digital AVOD offering VOOT was launched recently, said: “The consumer is paying. He may not be paying me but is paying for the data. As the payment mechanism develops, bundling can happen. So to say that the consumer is not paying is actually not a correct conclusion.”

    Kapur had a somewhat different point of view as compared to Vats. ‘Waiting for later’ was is not a saleable proposition for him. “We launched 500 channels and did not make consumer pay anything for it. We believe if we form a habit that consumers will later come, pay and watch, does that mean that we open a series of screens and let people walk in for free. I do not think so.”

    “Yes, people are watching movies on mobile phones but that does not mean theatre screens are going away” he added

    Chandra said there was room for profits and opportunities, “It is possible to monetize and it is possible to make profits. But you cannot put archival content, you need to create content exclusively for that very platform and only then will you taste success. The mindset that I will put archival content on digital is a slightly wrong mindset that the broadcasters have been following.”

     

  • FICCI FRAMES: Prasad says -Indian broadcast industry needs an improved rating system

    FICCI FRAMES: Prasad says -Indian broadcast industry needs an improved rating system

    Mumbai, 30 March: Communication & IT Minister Ravi Shankar Prasad today said the Digital India initiative of the Government is a $ 1 trillion business opportunity across IT and IT enabled services, telecom and electronics manufacturing.

    Speaking at the inauguration of the 17th edition of FICCI Frames Media & Entertainment Industry Conclave, Prasad said Digital India is aimed at empowering the citizens of India digitally.

    He said nearly $400 billion will be added from the electronics manufacturing including mobile phones, solar panels etc, while a $ 350 billion opportunity will be presented by the IT and ITES sector. The Communication services will provide business opportunities of $ 250 billion.

    The Minister said: “the aspirational urge of Indians is driving the digital world in a phenomenal way. And the Government’s job is to create an enabling eco-system for its growth.”

    Speaking about the Media & Entertainment Industry, Prasad who had been the Information Minister under Mr Atal Behari Vajpayee said Indian content has a global reach and “we must utilize its strength to depict virtues of our rich cultural heritage”. Prasad suggested that the epic stories of Ramayana and Mahabharata should be taken to the world via quality film making.

    Prasad said the Government recognized the importance and relevance of promoting media and entertainment industry. Hence, visa processes were being eased for film shootings.

    A National Centre of Excellence was coming up for the media and entertainment industry and a new film facilitation office was also being set up.

    He added that a new category in the National Film Awards – Most Film Friendly State – had been introduced to felicitate the state that provides greater access to the film industry.

    He said with the spread of internet new platforms were emerging which would lead to change in business models.

    The Minister asserted at the same time that Internet should remain democratic, plural and inclusive. “Internet is the finest creation of human mind, it should not be abused by few,” he said.

    Stressing that the television rating system must improve, Prasad said he was not impressed with TAM’s alternative – BARC – either.

    It was imperative for the television rating data to be more fair and reasonable. “I was not impressed by the TAM, and I am not impressed by the alternative too. How can a few thousand boxes determine what India is watching?” he asked. He said there was a need for a structured, fair and reasonable system to allow creation of quality content.

    He said several of his government initiatives like Skill India, Stand Up India, Aadhar roll out, Make in India, and Smart Cities involve enormous use of digital technology.

    “If the industry needs more policy initiatives, the government is open to it,” the Minister asserted.

    Prasad said with 250,000 gram panchayats being connected through Optic Fiber Network, the entire country was being brought under the broadband regime.

    He claimed that India is now the second largest mobile phone market. The internet penetration had reached 400 million, with 60% of it being mobile internet. He also said that India with one billion mobile phone connections had overtaken the United States to becomethe second largest mobile phone market in the world behind China.

    He asserted that with successful Aadhar enrolment, the government has been able to save Rs 15,000 crore through direct delivery of subsidies.

    Driving home the importance of Digital India and the opportunities it was offering, the Minister cited examples of a mathematics teacher-cum-App maker from Rajasthan, and a 68 year old person from Telangana who became digitally literate in order to communicate with her grandson in Dubai through skype. He said “Indians first watch, then adopt, enjoy and become empowered”.

     India’s talent combined with the power of Information Technology would act as a springboard to launch India into the big league, said Prasad.
    He ended by expressing his unhappiness towards the rating system in India, “I was never happy with TAM and I am not very happy with BARC either, I request Uday and the industry to have an improved rating system” he concluded

     

  • FICCI FRAMES: Prasad says -Indian broadcast industry needs an improved rating system

    FICCI FRAMES: Prasad says -Indian broadcast industry needs an improved rating system

    Mumbai, 30 March: Communication & IT Minister Ravi Shankar Prasad today said the Digital India initiative of the Government is a $ 1 trillion business opportunity across IT and IT enabled services, telecom and electronics manufacturing.

    Speaking at the inauguration of the 17th edition of FICCI Frames Media & Entertainment Industry Conclave, Prasad said Digital India is aimed at empowering the citizens of India digitally.

    He said nearly $400 billion will be added from the electronics manufacturing including mobile phones, solar panels etc, while a $ 350 billion opportunity will be presented by the IT and ITES sector. The Communication services will provide business opportunities of $ 250 billion.

    The Minister said: “the aspirational urge of Indians is driving the digital world in a phenomenal way. And the Government’s job is to create an enabling eco-system for its growth.”

    Speaking about the Media & Entertainment Industry, Prasad who had been the Information Minister under Mr Atal Behari Vajpayee said Indian content has a global reach and “we must utilize its strength to depict virtues of our rich cultural heritage”. Prasad suggested that the epic stories of Ramayana and Mahabharata should be taken to the world via quality film making.

    Prasad said the Government recognized the importance and relevance of promoting media and entertainment industry. Hence, visa processes were being eased for film shootings.

    A National Centre of Excellence was coming up for the media and entertainment industry and a new film facilitation office was also being set up.

    He added that a new category in the National Film Awards – Most Film Friendly State – had been introduced to felicitate the state that provides greater access to the film industry.

    He said with the spread of internet new platforms were emerging which would lead to change in business models.

    The Minister asserted at the same time that Internet should remain democratic, plural and inclusive. “Internet is the finest creation of human mind, it should not be abused by few,” he said.

    Stressing that the television rating system must improve, Prasad said he was not impressed with TAM’s alternative – BARC – either.

    It was imperative for the television rating data to be more fair and reasonable. “I was not impressed by the TAM, and I am not impressed by the alternative too. How can a few thousand boxes determine what India is watching?” he asked. He said there was a need for a structured, fair and reasonable system to allow creation of quality content.

    He said several of his government initiatives like Skill India, Stand Up India, Aadhar roll out, Make in India, and Smart Cities involve enormous use of digital technology.

    “If the industry needs more policy initiatives, the government is open to it,” the Minister asserted.

    Prasad said with 250,000 gram panchayats being connected through Optic Fiber Network, the entire country was being brought under the broadband regime.

    He claimed that India is now the second largest mobile phone market. The internet penetration had reached 400 million, with 60% of it being mobile internet. He also said that India with one billion mobile phone connections had overtaken the United States to becomethe second largest mobile phone market in the world behind China.

    He asserted that with successful Aadhar enrolment, the government has been able to save Rs 15,000 crore through direct delivery of subsidies.

    Driving home the importance of Digital India and the opportunities it was offering, the Minister cited examples of a mathematics teacher-cum-App maker from Rajasthan, and a 68 year old person from Telangana who became digitally literate in order to communicate with her grandson in Dubai through skype. He said “Indians first watch, then adopt, enjoy and become empowered”.

     India’s talent combined with the power of Information Technology would act as a springboard to launch India into the big league, said Prasad.
    He ended by expressing his unhappiness towards the rating system in India, “I was never happy with TAM and I am not very happy with BARC either, I request Uday and the industry to have an improved rating system” he concluded

     

  • Discovery to showcase Indian content across the world, to further strengthen local programming

    Discovery to showcase Indian content across the world, to further strengthen local programming

    MUMBAI: The flagship Discovery Network is all set to optimise the content programming and channels under its stable, even as the network foresees a growth in India’s GDP in the year 2016 and plans to broaden its portfolio in the nation.

    The network is re-focusing on expanding its scale in India by coming up with better programming line-up, catering to the regional market and by going local using the local talent available in India.

    Discovery Communications, which launched in India back in 1995 with only one channel, has now grown into a conglomerate with as many as 11 channels in five languages. The leader in the factual entertainment genre, Discovery roughly has 550 advertisers on board with approximately 275 million cumulative households across India.

    The company’s portfolio in South Asia comprises Discovery Channel, Animal Planet, TLC, Discovery Science, Discovery Turbo, Discovery Tamil, Discovery Kids, Investigation Discovery, and three high-definition channels namely Discovery HD World, Animal Planet HD World and TLC HD World.

    “No other market in the entire world has shown a growth like India. We want to become a multi-genre platform and want to grow as a media company. With the fresh content line-up, we are broadening our portfolio from what it looks like and are targeting the local audience”, said Discovery Networks International president J B Perrette.

    The network believes that the strong brands under them are extremely powerful and are doing economically well for them.

    Discovery Networks is also considering launch of its over-the-top (OTT) platform in India soon once the bandwidth stabilizes and once 4G gets in place in the country. The network is dependent on the response from the market rather than following one particular model.

    The network already has two direct-to-customer OTT products offering in Europe – Dplay and Eurosport – which are doing exceptionally well for them. “The consumption of video content is rapidly increasing in Norway. The country has proved to be a beneficiary market for us”, added Perrette.

    Known for providing high quality content to its viewers across the nation, Discovery is embarking on a very ambitious content production programme with $2 billion global investment. “We are seeing enormous traffic in India. This year, we have invested $2½ billion on our content programming globally to provide good quality shows on our flagship channels”, added Perrette.

    As it is not a platform only for documentaries, the network will bring new non-fiction genres like sports, kids, non-organic fiction, etc to India. For the first time, the network will broadcast shows produced in India to the rest of the world.

    “Over the years we have increased our local productions in India, and will continue to invest in content to better serve our viewers and clients. Some of the local programmes also find resonance around the world, just like the global content which is viewed in India,” Perrette said.

    Targeting the younger generation at large, the network plans to providing content across all its platforms in an easy, simple, accessible way providing various options of entertainment.

     

  • Discovery to showcase Indian content across the world, to further strengthen local programming

    Discovery to showcase Indian content across the world, to further strengthen local programming

    MUMBAI: The flagship Discovery Network is all set to optimise the content programming and channels under its stable, even as the network foresees a growth in India’s GDP in the year 2016 and plans to broaden its portfolio in the nation.

    The network is re-focusing on expanding its scale in India by coming up with better programming line-up, catering to the regional market and by going local using the local talent available in India.

    Discovery Communications, which launched in India back in 1995 with only one channel, has now grown into a conglomerate with as many as 11 channels in five languages. The leader in the factual entertainment genre, Discovery roughly has 550 advertisers on board with approximately 275 million cumulative households across India.

    The company’s portfolio in South Asia comprises Discovery Channel, Animal Planet, TLC, Discovery Science, Discovery Turbo, Discovery Tamil, Discovery Kids, Investigation Discovery, and three high-definition channels namely Discovery HD World, Animal Planet HD World and TLC HD World.

    “No other market in the entire world has shown a growth like India. We want to become a multi-genre platform and want to grow as a media company. With the fresh content line-up, we are broadening our portfolio from what it looks like and are targeting the local audience”, said Discovery Networks International president J B Perrette.

    The network believes that the strong brands under them are extremely powerful and are doing economically well for them.

    Discovery Networks is also considering launch of its over-the-top (OTT) platform in India soon once the bandwidth stabilizes and once 4G gets in place in the country. The network is dependent on the response from the market rather than following one particular model.

    The network already has two direct-to-customer OTT products offering in Europe – Dplay and Eurosport – which are doing exceptionally well for them. “The consumption of video content is rapidly increasing in Norway. The country has proved to be a beneficiary market for us”, added Perrette.

    Known for providing high quality content to its viewers across the nation, Discovery is embarking on a very ambitious content production programme with $2 billion global investment. “We are seeing enormous traffic in India. This year, we have invested $2½ billion on our content programming globally to provide good quality shows on our flagship channels”, added Perrette.

    As it is not a platform only for documentaries, the network will bring new non-fiction genres like sports, kids, non-organic fiction, etc to India. For the first time, the network will broadcast shows produced in India to the rest of the world.

    “Over the years we have increased our local productions in India, and will continue to invest in content to better serve our viewers and clients. Some of the local programmes also find resonance around the world, just like the global content which is viewed in India,” Perrette said.

    Targeting the younger generation at large, the network plans to providing content across all its platforms in an easy, simple, accessible way providing various options of entertainment.

     

  • KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    MUMBAI: If 2015 was a good year for media and entertainment industry with a growth rate of 12.8 per cent taking it to Rs 1157 billion,(RS 1,15,700 crore) with advertising revenues touching Rs 475 billion (Rs 47,500 crore), 2016 promises to be even better. Estimates show that the industry is to touch  Rs 1315 billion by this year end, with television alone commanding Rs 617 billion (Rs 61,700 crore). And the industry stalwarts project even rosier tidings for 2020.

    As per KPMG- FICCI Indian Media and Entertainment Industry Report 2016 that was released on 30 March at FICCI Frames 2016, the sector is projected to grow at a CAGR of 14.3 percent to be valued at Rs 2260 billion (Rs 2,26,000 crore) by 2020, with advertising revenue touching a whooping Rs 994 billion (Rs 99400 crore) at a CAGR growth of 15.9 per cent.

    Television continues to thrive:

    While 2015 saw the growing stress on the need to transport from traditional media to digital options, the current report reassures the continued importance and relevance of television as a medium, which is projected to grow at a rate of 15.1 CAGR between 2015- 2020, and touch Rs 1,09,760 crore by 2020, out of which Rs 364.5 billion (Rs 36,450 crore) will be contributed by advertising revenue. TV ad revenue is expected to touch Rs 210.3 billion (Rs 21,030 crore) by the end of 2016. On the other hand, subscription revenue for broadcasters is expected to grow at a CAGR of 15 per cent between 2015- 2020, to Rs 733 billion (Rs 73,300 crore). Subscription revenues for TV is estimated to have grown at 13 per cent to reach Rs 361 billion (Rs 36,100 crore). While the figures show a positive growth in advertising revenues, a delayed digitisation process would slow down the subscription growth.

    Digital, the fastest growing medium:

    Digital Advertising will continue to grow at a high CAGR of 33.5 per cent, the highest growing medium of all. The evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimates that by 2020 digital advertising will touch Rs 255.2 billion  (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

    Impact of BARC India ratings on Television:

    There are no two opinions about the fact that roll out of BARC ratings was a major event that changed the face of the industry, and perhaps its rules as well.  The implementation of BARC was a major theme in 2015. While inclusion of rural markets and increase in sample size led to a reshuffle of rankings in the ratings of TV channels, particularly highlighting the viewership of FTA channels, there was no immediate impact on ad budget allocations among channels or genres. Going forward, sustained trends in ratings could lead to advertisers re-thinking their ad spend mix and broadcasters their content strategy.

    Paid C&S penetration of TV:

    The number of TV households in India has increased to 175 million (17.5 crore), at 62 percent growth rate. The figures are estimated to touch 200 million (20 crore) by 2020, with paid cable and satellite subscriber base growing to 174 million (17.5 crore) and command a lion share of 87 per cent of total TV households. However, when considering distribution, challenges in improving addressability, increasing monetisation continues to plague the industry, the report foretells. Meanwhile, competition in the TV distribution space is expected to intensify with Reliance Jio coming in the cable TV business.

    ARPU continues to back DTH growth:

    As per industry observations shared in the report, DTH has seen an ARPU growth of 10 per cent in 2015, driven by price hikes,  and increased HD feed penetration which constitutes 15 percent of the total subscriber base in the sector. This trend is expected to rule the sector in the upcoming years as well, with average ARPU of HD subscriber estimated to grow to 1.5 to 2 times that of a non HD subscriber. The report also hints at a growth in demand and adoption of 4K STBs, though lack of enough 4K content could be a disadvantage to this growth.

  • KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    KPMG-FICCI: TV industry to touch Rs 1,09,700 crore by 2020

    MUMBAI: If 2015 was a good year for media and entertainment industry with a growth rate of 12.8 per cent taking it to Rs 1157 billion,(RS 1,15,700 crore) with advertising revenues touching Rs 475 billion (Rs 47,500 crore), 2016 promises to be even better. Estimates show that the industry is to touch  Rs 1315 billion by this year end, with television alone commanding Rs 617 billion (Rs 61,700 crore). And the industry stalwarts project even rosier tidings for 2020.

    As per KPMG- FICCI Indian Media and Entertainment Industry Report 2016 that was released on 30 March at FICCI Frames 2016, the sector is projected to grow at a CAGR of 14.3 percent to be valued at Rs 2260 billion (Rs 2,26,000 crore) by 2020, with advertising revenue touching a whooping Rs 994 billion (Rs 99400 crore) at a CAGR growth of 15.9 per cent.

    Television continues to thrive:

    While 2015 saw the growing stress on the need to transport from traditional media to digital options, the current report reassures the continued importance and relevance of television as a medium, which is projected to grow at a rate of 15.1 CAGR between 2015- 2020, and touch Rs 1,09,760 crore by 2020, out of which Rs 364.5 billion (Rs 36,450 crore) will be contributed by advertising revenue. TV ad revenue is expected to touch Rs 210.3 billion (Rs 21,030 crore) by the end of 2016. On the other hand, subscription revenue for broadcasters is expected to grow at a CAGR of 15 per cent between 2015- 2020, to Rs 733 billion (Rs 73,300 crore). Subscription revenues for TV is estimated to have grown at 13 per cent to reach Rs 361 billion (Rs 36,100 crore). While the figures show a positive growth in advertising revenues, a delayed digitisation process would slow down the subscription growth.

    Digital, the fastest growing medium:

    Digital Advertising will continue to grow at a high CAGR of 33.5 per cent, the highest growing medium of all. The evident shift would be towards mobile and video advertising backed by the opening up of bandwidth in the country by 2020. The report estimates that by 2020 digital advertising will touch Rs 255.2 billion  (Rs 25,520 crore) and contribute 25.7 percent of the total advertising revenue.

    Impact of BARC India ratings on Television:

    There are no two opinions about the fact that roll out of BARC ratings was a major event that changed the face of the industry, and perhaps its rules as well.  The implementation of BARC was a major theme in 2015. While inclusion of rural markets and increase in sample size led to a reshuffle of rankings in the ratings of TV channels, particularly highlighting the viewership of FTA channels, there was no immediate impact on ad budget allocations among channels or genres. Going forward, sustained trends in ratings could lead to advertisers re-thinking their ad spend mix and broadcasters their content strategy.

    Paid C&S penetration of TV:

    The number of TV households in India has increased to 175 million (17.5 crore), at 62 percent growth rate. The figures are estimated to touch 200 million (20 crore) by 2020, with paid cable and satellite subscriber base growing to 174 million (17.5 crore) and command a lion share of 87 per cent of total TV households. However, when considering distribution, challenges in improving addressability, increasing monetisation continues to plague the industry, the report foretells. Meanwhile, competition in the TV distribution space is expected to intensify with Reliance Jio coming in the cable TV business.

    ARPU continues to back DTH growth:

    As per industry observations shared in the report, DTH has seen an ARPU growth of 10 per cent in 2015, driven by price hikes,  and increased HD feed penetration which constitutes 15 percent of the total subscriber base in the sector. This trend is expected to rule the sector in the upcoming years as well, with average ARPU of HD subscriber estimated to grow to 1.5 to 2 times that of a non HD subscriber. The report also hints at a growth in demand and adoption of 4K STBs, though lack of enough 4K content could be a disadvantage to this growth.