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Spotlight on India’s entertainment economy - EY - India

Spotlight on India’s entertainment economy

Seizing new growth opportunities

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The Indian M&E industry is at a new inflection point — digital media. A surge in mass broadband adoption is expected, led by the launch of 3G and 4G services. In conjunction with the country’s mobile phone user base, more than 750 million subscribers, the scale and impact of potential digital content consumption is enormous.

This presents M&E companies, foreign and domestic, with an exciting opportunity to develop digital businesses that cater to a new generation of Indian digital consumers.

To succeed in this market, there are several success factors that global companies need to take into account. While there are many opportunities to tap, there are also unique challenges in the areas of content localization, distribution and pricing, regulations and piracy.

In this report, we examine India’s M&E landscape and provide an overview of the key opportunities, challenges and critical success factors in doing business here.

Key findings of the report include:
  • India’s increasing per capita income, growing middle class and working population are generating huge domestic demand for leisure and entertainment. The country has more than 600 television channels, 100 million pay-television households, 70,000 newspapers and produces more than 1,000 films annually.
  • India has diverse regional markets with distinct cultures, languages and content preferences. These markets provide global media and entertainment companies with a variety of opportunities to deliver localized content.
  • India’s favorable regulations and reforms are creating investment opportunities for global media and entertainment companies.
  • The newspaper industry, which is facing declining readership in many international markets, continues to thrive in India, driven by increasing literacy rates, consumer spending and the growth of regional markets and specialty newspapers. Newspapers account for 42% of all advertising spend in India, the most of any medium.
  • The mandatory digitization of India's television distribution infrastructure is driving growth of digital cable and DTH and creating a need for these companies to fund expansion.
  • The third phase of radio license auctions, expected soon, will see radio networks expanding their reach to add around 700 radio stations across the country.

What our leaders say:

“The M&E industry in India has been, and will continue to be, one of the biggest beneficiaries of India’s favorable demographics, …. Having one of the world’s youngest populations, high volumes of content consumption, a favorable regulatory framework and growing digital adoption, makes India an attractive investment destination for global media and entertainment companies.”

Farokh Balsara,
EMEIA M&E leader, EY

“The growth strategies in most companies in the US and Western Europe are linked to India and other emerging markets …. However, to succeed in India, global media and entertainment companies need to navigate unique challenges in the areas of content localization, distribution and pricing, regulations and piracy.”

John Nendick,
Global M&E Leader, Ernst
& Young

Download this report for an in-depth analysis of the Indian M&E scenario.

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