1 2

India’s vibrant M&E industry, known as Bollywood, is expected to grow to $41.4 billion (10.5 percent CAGR) by 2019, led by digital sectors. The country will outpace M&E spending across the Asia Pacific as well as globally through 2018, due to Internet advertising, video games and Internet access growth. Nominal GDP in India will grow at 14 percent during the same period. Bollywood (the Hindi language film industry based in Mumbai, India) and Kollywood (the Tamil language film industry based in Chennai, Tamil Nadu) outshine the rest of the world by producing the most films globally.

India ranks fourth on ITA’s list of top M&E export markets and is expected to show robust growth in all subsectors, with one exception, online video games, which will grow but not in a speed.  Bollywood is a major entertainment industry power player and a generator of a lot of popular music in India.

The $25 billion India M&E industry is dominated by film, television and Internet access and is expected to grow at a 10.5 percent rate between 2014 and 2019. India has the third largest Internet market after the United States and China, with 302 million Internet users, but reigns supreme with 900 million mobile users. Television penetration is at 65 percent today and will grow another 7 percent by 2017 and, along with AGV (animation, gaming and VFX – visual effects) will lead industry growth. India has digitized cable TV, and direct‐to‐home (DTH) subscriptions are rising.

Movie-going is the national pastime next to watching cricket, and multiplexes are being built at a rapid rate. Radio and music remain a prominent source of revenue, and future growth is likely to result from digitization of distribution methods as a means to reach a larger number of consumers more efficiently.

Oppertunities

Filmed Entertainment

Filmed entertainment will grow 8.1 percent to $2.9 billion in 2019. There are opportunities for joint projects and local language content across India. Box office revenues and movie attendance are rising, and multiplexes continue to be built while 3‐D and animation skills are needed, offering very good opportunities with new format expertise in the film sector. Home video such as over‐the‐top (OTT) streaming and subscriptions for TV and e‐videos are rising dramatically, offering licensors tremendous opportunity if they can navigate the licensing regime and rampant piracy.

The greatest growth in the filmed entertainment industry will come from OTT movie‐streaming services. Local OTT providers include BIFFlix, Spuul, BOXTV, and ErosNow. India is emerging as the teleport hub of Asia, and 86 teleport permissions have been issued by the Ministry of Information and Broadcasting.

India’s TV market is set to expand to 165.3 million households at a rate of 1.9 percent by 2019, expanding from the current 150.1 million subscriptions in 2014. The country has a robust and large broadcasting and distribution sector, with approximately 796 satellite TV channels; 6,000 multi‐ system operators; 60,000 local cable operators; 7 DTH operators and 4 IPTV service providers. TV penetration in India is about 65 percent and is expected to reach 72 percent by 2017, 43 and with the digitization of cable TV in India which was just finalized over four‐stages, the direct‐to‐home (DTH) subscriptions are growing rapidly, driven by content innovation and product offerings.

The Government of India has supported the growth of this sector with various initiatives, such as digitizing the cable distribution sector to attract greater institutional funding and increasing the FDI limit from 74 percent to 100 percent in cable and DTH satellite platforms. Today, 100 percent FDI is permitted in film and advertising as well as TV broadcasting.

1 2