INDIA ENTERTAINMENT INDUSTRY
The Indian media industry has tremendous scope for
growth in all the segments due to rising incomes and evolving lifestyles. Media
is consumed by audience across demographics and various avenues such as
television, films, out of home (OOH), radio, animation and visual effect (VFX),
music, gaming, digital advertising, and print.
The Media & Entertainment industry is
anticipated to grow at a Compound Annual Growth Rate (CAGR) of 13.9% during
2016-21 to reach US$ 37.55 billion. The industry provides employment to 3.5-4
million people, including both direct and indirect employment as of 2017.
Advertising expenditure in India is expected to grow
13 per cent year-on-year to Rs 69,346 crore (US$ 10.71 billion) in 2018 and Rs
1.07 trillion (US$ 16.70 billion) by 2020. The Indian digital advertising
industry is expected to grow at a CAGR of 32 per cent to reach Rs 18,986 crore
(US$ 2.93 billion) by 2020. India is the second largest television market in
the world with US$ 9.62 billion in revenue in 2016. The Indian film industry is
expected to grow at a rate of 10.4 per cent to become the third largest cinema
market, after US and China by 2021.
The Government of India has supported this sector's
growth by taking various initiatives such as digitizing the cable distribution
sector to attract greater institutional funding, increasing Foreign Direct
Investment (FDI) limit from 74 per cent to 100 per cent in cable and
Direct-to-home (DTH) satellite platforms, and granting industry status to the
film industry for easy access to institutional finance.
Second largest TV market
Household
televisions increased to 183 million in 2017* from 181 million in 2016 with 780
million TV viewing individuals. In 2016,
television market generated revenue of US$ 9.62 billion.
One of the largest broadcasting market
As of 2016,
India had one of the largest broadcasting industries in the world with
approximately 892 private satellite television channels. As of 2016, there are
243 FM radio channels and 190 operational community radio networks.
The Ministry
of Information and Broadcasting (MIB) has officially completed all the four
phases of digitization, As of March 2017, a total of 64.4 million set-top boxes
(excluding Tamil Nadu) were set up in Phase 3 and Phase 4 areas.
Total of 243
FM channels (21 from the Phase - I and 222 from Phase – II) are operational.
Under the phase III, the Cabinet has already given permission to 135 FM
channels in 69 cities to operate.
Telecom Regulatory Authority of India (TRAI)
plans to introduce a policy for broadcasting sector with a vision of 2020. The
policy aims to usher a new era in the brodcasting sector where MRP of the TV
channel will be declared by broadcasters directly to the consumers, and will
bring more transparency and choices to the consumers.
Fast growing animation industry
The animation and Visual Effects (VFX) industry showcased a growth
of 16.4 per cent, largely led by a 31 per cent growth in VFX industry.
During 2016-21, the segment is expected to grow at a higher CAGR
of 17.2 per cent, largely led by the continued growth in outsourced services
and the swelling use of animation and VFX services in the domestic television
and film space, respectively.
Exceptional growth in film industry
The Indian
film industry in expected to grow at a rate of 10.4 per cent to become the
third largest cinema market, after US and China by 2021. Digitalization has
played the major role in the growth of Indian film industry. By 2019, cinema
exhibition industry in India is expected to have over 3,000 multiplex screens.
Rising no of
subscribers
Total subscriber base for
Indian television industry is expected to increase to 195 million by 2019 from
183 million in 2017. As of December
2016, registered DTH subscriber base in India stood at around 97.05 million. As
of September 2017 active DTH subscriber base in the country stood at around
66.09 million.
ARPU (Average
Revenue per User) Bullish post Digitization
With higher scope of introduction of new and niche channels with
digitization, ARPU levels are expected to increase in the coming years.
ARPU for DTH subscribers has seen an increase of around 2.84 per
cent in 2016. The more promising trend is that DTH operators are able to
increase collections from customers by providing additional services such as HD
channels, premium channels and other value added services.
HD adoptions continue to drive ARPU growth for DTH players with
the average ARPU of a HD subscriber at ~1.5 to 2 times more the ARPU of non HD
subscribers.
Digital cable on the other
hand, has not seen any significant ARPU increases as compared to the DTH ARPU.
For digital cable, deployment of different channel packages will be the key
driver to raise ARPUs As of December 2016, total number of DTH subscribers
stood at around 97.05 million. As of September 2017, active DTH subscribers
stood at 66.09 million.
Reliance
Industries Limited to acquire stake in Eros International PLC
Announces
Joint Partnership with Eros India to set-up a INR 1,000 crore (USD 150 million)
fund to co-produce and consolidate content
Jyoti
Deshpande to head RIL’s media and entertainment business as President of the
Chairman’s Office
Reliance
Industries Limited (“RIL”) and Eros International PLC (“Eros”), through a
subsidiary, has agreed to subscribe to a 5% equity stake in NYSE listed Eros at
a price of USD15 per share, which represents an 18% premium to last closing
price. The transaction is subject to customary regulatory and other approvals.
Furthermore,
RIL and Eros International Media Limited (“Eros India”) announced that they
have agreed to partner in India to jointly produce and consolidate content from
across India. The parties will equally invest up to INR 1,000 crores in
aggregate (approximately USD150 million) to produce and acquire Indian films
and digital originals across all languages.
About
Eros International Plc
Eros
International Plc (NYSE: EROS) is a leading global company in the Indian film
entertainment industry that acquires, co-produces and distributes Indian films
across all available formats such as cinema, television and digital new media.
Eros International Plc became the first Indian media company to list on the New
York Stock Exchange. Eros International has experience of over three decades in
establishing a global platform for Indian cinema. The Company has an extensive
and growing movie library comprising of over 3,000 films, which include Hindi,
Tamil, and other regional language films. The company also owns the rapidly
growing OTT platform Eros Now.
In her new
role at RIL, Ms. Deshpande will lead the company’s initiatives in Media and
Entertainment to organically build and grow businesses around the content
ecosystem such as Broadcasting, Films, Sports, Music, Digital, Gaming,
Animation etc., as well as integrate RIL’s existing media investments such as
Viacom and Balaji Telefilms with a view to build, scale and consolidate the
fragmented USD 20 billion Indian M&E sector.
RELIANCE INDUSTRIES LIMITED ANNOUNCES STRATEGIC TRANSACTION WITH
SAAVN TO FORM INDIA’S LARGEST PLATFORM FOR MUSIC, MEDIA & ARTISTS
INTEGRATION OF JIO MUSIC AND SAAVN IN A TRANSACTION VALUED AT OVER
US$ 1 BILLION
RELIANCE TO FURTHER INVEST UPTO US$ 100 MILLION FOR GROWTH SAAVN
FOUNDERS TO DRIVE GROWTH OF THE COMBINED ENTITY
Reliance Industries
Limited (“RIL”) executed definitive agreements for combination of Saavn, a
leading global music OTT platform, with its digital music service, JioMusic.
The combined entity is valued at over US$1 billion, with JioMusic’s implied
valuation at US$ 670 million. The integrated business will be developed into a
media platform of the future with global reach, cross-border original content,
an independent artist marketplace, consolidated data and one of the largest
mobile advertising mediums.
Reliance will also invest upto Rupee
equivalent of US$100 million, out of which Rupee equivalent of US$20 million
will be invested upfront, for growth and expansion of the platform into one of
the largest streaming services in the world. The company will continue to
operate the over-the-top media platform available on all app stores. The three
co-founders of Saavn, Rishi Malhotra, Paramdeep Singh and Vinodh Bhat, will
continue in their leadership roles and will drive growth of the combined
entity.
In addition,
Reliance is acquiring partial stake from the existing shareholders of Saavn for
US$104 million, while these shareholders retain their balance stake. The
shareholder base of Saavn includes Tiger Global Management, Liberty Media and
Bertelsmann among others.
JioMusic has
been India’s fastest growing music streaming app for over 60 consecutive weeks.
JioMusic has sourced content from all the major Indian and international
labels, with over 16 million HD songs across 20 languages. The exhaustive
content library, customer experience functionalities and the differentiated Jio
digital ecosystem have enabled the rapid growth of the JioMusic platform. Saavn
is the only streaming service to make Top Grossing App charts in multiple
markets, including India, US, UK, Canada, UAE and Singapore, among others.
The deal will
combine the streaming media expertise of Saavn with the connectivity and
digital ecosystem of Jio. With a massive addressable market opportunity of over
1 billion users in India and globally, the combined entity plans to invest
aggressively to accelerate growth that would benefit all aspects of the
ecosystem, including users, music labels, artists and advertisers.
About Saavn
About Saavn
Founded in 2007, Saavn is one of South Asia's leading digital music streaming
services, transforming how people around the world access and experience music
on a daily basis. Saavn is currently accessed across the globe and offers 36
million tracks in 15 languages. The company has 900+ label partnerships and growing,
including Universal, Sony, T-Series, Tips, YRF, Saregama, Eros and Warner
Music. Saavn’s investors include Tiger Global Management, Liberty Media,
Bertelsmann, Steadview Capital, Ward Ferry Management, Senvest Management, Tree
Line Investment Management, Quilvest, Mousse Partners, Wellington Capital
Management, William Morris Endeavor and a number of strategic individuals,
including former Vodafone CEO, Arun Sarin, and Guy Oseary, Chairman of Maverick
and manager of global artists including Madonna and U2.
In 2016,
Saavn expanded its content offering into Saavn Original Programming, a slate of
original, non-music audio programs that range from Bollywood to comedy and
storytelling to cricket. In early 2017, Saavn introduced Artist Originals, an
original music program releasing and marketing tracks and albums by South Asian
artists, songwriters and producers from around the world. With its headquarters
in New York, Saavn also runs offices in Mumbai, Gurgaon, Bangalore and
California.
Reliance
Jio acquiring stake in Balaji Telefilms Ltd.
Reliance Industries
Ltd (RIL), India’s biggest company by market value, acquired a 24.92% stake in
film and television production house Balaji Telefilms Ltd in a deal worth
Rs413.28 crore. The board of Balaji Telefilms approved the investment by RIL,
which will buy 25.2 million equity shares at Rs164 each, subject to shareholder
and other approvals.
The stake purchase
will give RIL access to content generated by Balaji Telefilms for use by its
telecom arm, Reliance Jio Infocomm Ltd. This investment in content production (including digital content)
is in line with RIL’s commitment to invest and grow in telecom, digital and
media businesses.
Balaji
Telefilms is a content producer operating across television, films and digital
platforms. In April 2017, it launched an ad-free, subscription-based online
streaming service, ALTBalaji, with 32 original shows in Hindi, Bengali, Tamil
and Gujarati. ALTBalaji has garnered over 11 million downloads
across 90 countries and more than 2 million web
viewers.
This transaction is significant for the Indian OTT
industry and is expected to further accelerate the growing trend of media
consumption on the go. The number of video-capable devices and connections are
expected to grow 2.2 times between 2016 and 2021, reaching 800 million,
according to the Ficci-KPMG Media and Entertainment Industry Report 2017. India
has about 30 OTT companies.
This content
would be enjoyed by all the subscribers of Reliance Jio, one of the leading
telcos in India, as part of the Digital Services eco-system offered by Jio.
Latin Manharlal Group
No comments:
Post a Comment