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Entertainment and Media Industry

The entertainment and media industry is a fast growing industry in the country.

 

It comprises various segments such as film, television, print media, music, radio, advertising, and digital media:

 

  • Cinema: The film industry of India is the largest worldwide. This is in accordance with the number of films produced per year. Open routes for foreign investment and the grant of an industry tag have created a good impact. This is why many foreign production houses are entering the Indian shores.

 

  • TV: The TV industry is valued at US$ 4.63 billion and is projected to expand by 14.5% by 2013. The entry of DTH (direct to home) and mobile television are growing sectors in this field. With the foray of 3G on the Indian shores, mobile TV offers a great deal of promise. The DTH industry is also expected to grow by 100%.

 

Also, TV channels, such as Pogo, Disney, Cartoon Network, Star Plus, and MTV, are increasing their products to tap the potential of this industry further. The television distribution sector is projected to reach US$ 5.2 billion by 2013.

 

  • Print Media: The print media is also expanding. The newspaper and magazine industry is also growing. Foreign magazines are also making their presence felt.

 

  • Music: The music industry is huge in India. Currently, CDs account for the major share of sales. But newer forms, such as ringtones and digital downloads, are poised to grow. Digital sales are projected to amount to 88% of the total revenue generated. This industry is projected to grow to US$ 164.5 million by 2012. 

 

  • Radio: This is the most cost-friendly form of entertainment and has a tremendous reach.

 

Private participation in this sector has emerged and accounts for a major segment in this industry. This sector is getting at an average of 30% through advertising. FM broadcasting has grown rapidly, and India has a total of more than 300 radio stations today.

 

  • Advertising: This industry is growing rapidly, with more companies looking to create a brand name for themselves. Advertising revenues through TV are expected to gross US$ 3.12 billion by 2013. Not only that, digital advertising through Internet and mobiles is also gaining momentum. Online advertising is projected to reach US$ 212 million by 2011. Advertising through web sites of leading dailies is also expected to reach US$ 8.3 billion. 

 

Many partnerships have been struck between the foreign powerhouses and Indian majors. Reliance has entered in a pact with Dreamworks studio. Walt Disney has tied up with the Yash Raj group to create animated films. Adlabs and PVR are also expanding their businesses in India.

 

  • Digital Media: The animation industry is poised to expand greatly. Companies, such as Intel, Disney, Paramount, and Cartoon Network, are looking to tap into this industry. This is due to the growth of gaming and the real-time 3D sector.

 

The initiatives of the government are a further boost to this industry. It allows 100% FDI via automatic channels in sectors of advertising and films. 49% holding in DTH and cable TV is allowed. 100% FDI in the non-news segment and 26% in the news segment are allowed. In the FM segment FDI worth 20% is allowed.

 

Thus, the entertainment and media industry is very promising and has a lot to offer potential investors.