Sectoral Capsule - Indian Film Industry: Potential in the Next Hundred Years
Owing to changing consumer preferences, evolving media-delivery platforms, new business models, favourable regulations and increased competition due to a proliferation of global players, the Indian media and entertainment (M&E) market has matured immensely over the last decade. The increasing media penetration and consumption in Tier II and Tier III cities is creating more opportunities for the industry. With greater access to media and easy availability of digital devices, the industry is shifting its marketing and delivery platforms to cater to focused segments.
India’s M&E industry is expected to reach INR XXX billion by 2017, growing from INR XXX billion in 2012. The main constituents of the M&E industry are TV, print and films. The television sector occupies the highest share with XX percent, followed by print (XX percent) and films (XX percent). This digitization process may take longer than anticipated but once in place, it will change the face of Indian media. All the stakeholders along its value chain will benefit from it.
Recovering from a two-year lull, the Indian film industry posted a strong year-on-year growth of XX percent in 2012. Improved content, coupled with the growth of multiplexes, enabled producers to amass huge profits. Within the film industry, domestic theatrical contributed around XX percent of the revenue, while overseas theatrical accounted for a meager XX percent. This implies an opportunity for the industry to exploit the overseas market with better marketing strategies.
Despite piracy, the Indian music industry rose against all odds in 2012. The industry saw a greater tilt towards digital music sales, which overshadowed physical music sales in the last two years. Furthermore, regional music is acquiring a large part of the Indian as well as the overseas markets.
However, with the global economy slowing down, India too has felt the singe. The growth rate for India was projected at about XX percent for the next five years. Nevertheless, the real GDP growth rate was around XX percent in 2012. But even then projection for the consumption of media is looking strong.